FROM the popularity of TV shows like The Real Housewives and Gossip Girl to an ever greater number of news stories about millionaires and billionaires, it seems the world is fascinated by affluence. But what do real affluent individuals look like around the world today?
McCann Truth Central, the research and insight wing of McCann Worldgroup, undertook a global study to understand the ever-elusive affluent segment and decode what makes them tick. The study unpacks their passions, family structures, priorities and brand relationships and captures both the similarities and differences between affluent consumers across regions.
The complex and contradicting undercurrents driving the Indian affluents
For a nation hungry to grow, Indian affluents are evolving by leaps. More Indians (79%) like to believe they are affluent and therefore should be treated accordingly as opposed to just 12% of the global sample. Outward manifestations of affluence continue to be ownership of multiple real estate, luxury cars, jewellery, clothes, etc. But the more subtle indicators?poise, posture and youthful appearance?were ahead of the more conspicuous luxury indicators above. However, 90% agreed that is has become difficult to tell whether someone is affluent just by looking at them.
Over 70% of Indian respondents agreed that being affluent is a state of mind rather than just a number in the bank. According to our respondents, the latter speaks of something deeper and more meaningful: ?Being affluent means having everything in abundance; time, money, experiences, education. It does not necessarily mean having money?.
A roadmap to affluence
Is there a strand of affluent DNA? Could there be one grand achievement that propels some people into affluence, or perhaps affluence is a product of a framework of values, efforts, and enrichment that distinguishes these individuals from others?
The grand fallacy of risk
When asked about the primary characteristics that elevate people to a state of affluence, 25% of the wealthiest people in the world mention a willingness to take risks. Yet, when asked how they themselves became rich, affluent individuals suggest that risk actually played much less of a role. The top three characteristics they mention for themselves are hardworking (51%), educated (32%), and passionate (29%). When placed in a personal context, risk-taking falls to 18%.
Either because they rose from lower and middle classes or because they are constantly worried about their financial standing, some affluents feel that they never had the opportunity to take risks. Instead, they believe a tireless work ethic became a means of survival and ultimately led them to affluence. It may also be true to say, of course, that what looks like risk-taking behaviour from the outside is deemed to be carefully calculated moves by affluent individuals themselves.
Affluence for all
Given the way that affluent individuals view their ascent to, or maintenance of, wealth?through hard work, education, and passion?it?s understandable that 66% of them believe that everyone has the opportunity to become affluent if they try hard enough. They like to see affluence as a by-product of human elements within their control. Very few want to admit to the role of things like being in the right place at the right time (19%), luck (13%) and family connections (7%) for them reaching their current place in life.
What motivates the affluents?
The most precious resource: Time
Individual attitudes toward money also change over time. Globally, a third of respondents say that they see money as more important than it used to be. With money flowing and opportunities bountiful, there is a greater urgency to attain more wealth and become more affluent. More importantly, affluents agree that the way you spend your money is perhaps less important than how you spend your time. Time is actually recognised as the most precious resource, more so than mental and physical energy, personal space, or money itself. Indians put more premium on time: 88% say they would exchange some of their money for more time to do the things that matter to them.
The most precious people: Family
Given the importance of time, affluents are trying to use their time wisely. When asked to choose what attributes would be present in a perfect career (aside from money), the affluent respondents opt for a career that lets them spend lots of time with their family. While affluence can bring many joys in life, parents are also worried about giving their children too many luxuries and are concerned about passing down core family values.
The most precious value: Freedom
Ultimately beyond time and family, affluent people are seeking freedom to focus on things that really matter. This freedom also meant developing a mastery of their own time. The top three things that affluents would devote a fair amount to a lot of time to were family, friends, and wellness pursuits.
The healthy new world of affluence
Indian affluents are now realising the price they have paid for reaching where they are. When asked which personal enrichment activities they would be most interested in dedicating their time to, learning how to live a healthier life comes out on top. In fact, the top lesson Indian respondents (43%) want their children to learn is taking care of body, mind and spirit!
Value at the core
Affluent individuals may not be as price conscious as other individuals but they still pride themselves on a strong antenna for value. 78% say that even if they had unlimited money, they would still consider the value of things before buying them. And they are wary of brands that seem opportunistic: 85% say they hate it when brands are more interested in their money rather than in them. And they gravitate towards brands with a strong and authentic point of view in the world today: 87% believe brands should stand up for what they believe in.
Happiness?the ultimate pursuit of affuence
More Indians see affluence as a route to happiness: 70% believe that is easier for affluent people to be happy and 65% believe that affluent people have lesser regrets.
The world of affluence is rapidly evolving and evermore dynamic. Now is the time for brands to engage with the real truth about affluence and lead this lucrative conversation around the world today.
The author is executive vice president and head of planning,
McCann Erickson. McCann Truth Central conducted a 4,000-person online survey of the top 20 percent of populations in key centres of commerce and culture around the world as defined by annual household income and net worth to understand the new breed of global affluents. Truth Central also ran two-hour, in-house dinner parties with groups of affluent individuals.
