Ipsos MediaCT Syndicated Event Presentation Booklet

Understanding the Global Affluent and Elite
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Ipsos MediaCT | Understanding the Global Affluent and Elite Event 2013

Welcome
The global Affluent and Business
Elite surveys have been in
existence for many years, but
never have we seen these two
complimentary surveys side by
side, until now.
The Affluent and Business Elite
represent the wealthiest, and most
influential group of individuals in
the world.

© Ipsos MORI

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The surveys
The Affluent include the Business
Elite amongst their number. And
the Business Elite are, of course,
Affluent. However, they are very
different.
The Business Elite are reached via
their companies and are
representative of large and
medium-sized companies. They
are also representative of the
types of senior position that exist
in these companies. They are a
disproportionately important group
of people, whose power in the

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boardroom and as consumers of
travel, luxury goods and personal
finance services is unparalleled.
The Affluent represent between
the top 13 and 20 percent of
individuals based on their income.
They are representative of people
earning over certain income
thresholds. The Affluent are the
highest earning and spending
individuals and are the most
important consumers of a wide
range of goods and services.

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Portraits
And this chart really helps us to
understand how the groups are
different. The Business Elite are
business focused and are signing
off large budgets, have substantial
financial worth and travel
frequently in business and first
class.
The affluent by nature are big
shoppers, owning premium goods
such as luxury cars, and fly
frequently.

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Change
Change happens the whole time. It
effects absolutely everyone in
many different ways:
A change in the weather dictates
what you wear in the morning
A change in technology in how you
access content
However much it challenges us it’s
necessary and enables us to
continue. We’re pretty much in a
permanent state of change.

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Pace of change
And, to help add to this, the pace
of change we face is becoming
ever quicker. The more often ideas
come together, the more
frequently it occurs.
To put this into perspective,
scientists think the age of the earth
is about 4 and half billion years.
The first telephone call was made
in 1876, 137 years ago. 97 years
on the first mobile phone call was

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made in 1973 and now 40 years
on from here we have phones that
fit in your pocket that can pretty
much do anything from monitoring
how well you’ve slept to playing
music that suits your mood.
And interestingly, now more
people in the world have access to
a mobile phone than a working
toilet!

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Two areas
So, we’re now going to focus on
two areas of change that we’ve
seen more recently in the 21st
century:
• Economic changes
• And, the development of
technology
We’ll be looking at these and
specifically how two audiences
have reacted: the Global Affluent,
and the Global Business Elite.

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Economies
Economies around the world have
changed dramatically. Some have
seen growth. Others have slumped
into recession. It’s a very mixed
picture. So around the world,
depending on who you are, and
where you are, you will react
differently to different situations.

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Chocolate – recession proof
In mature markets, such as
Europe and the US the recession
hit hard. The average person cut
back on spending – from the
weekly shop to a new TV.
However, what they could afford
was chocolate – widely considered
a recession proof food. With
consumers eating out less and
eating at home more, chocolate
allowed them that inexpensive
indulgence. In fact, in 2009 Swiss
chocolate makers had record
sales.

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There has been a fundamental
change to how many of us live.

So, that’s an example of how the
average react to change,
specifically in recession. The
affluent and business elite react
differently….

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Global Affluent
But that’s how the average have
reacted in markets that are in
recession. The affluent react
slightly differently….
The ‘Global Affluent’ come in all
shapes and sizes, with a myriad of
different wants and needs from
Turkey, Brazil, Singapore to the
USA. Yet, these individuals have
one thing in common they are
disproportionately important to
most marketers of many products
and services.

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Busy lives
They lead every busy lives, 60%
work more than 40 hours a week
and travel for business or pleasure
on a regular basis, which could
explain why 41% find it difficult to
find a balance between private life
and work. 7 out of 10 feel that
there is just not enough time in a
day. When they do have some
time off, they use it to unwind and
relax.
So while unemployment continues
to be a problem for the general
population it isn’t for the affluent….

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Income
The mean income of the average
affluent respondent has remained
stable over the last few years and
we do not see any decline in their
buying patterns, however, they are
being more conservative in how
they invest possibly to protect their
existing wealth. The proportion of
people trading stocks and shares
at least 6 times a year has
declined from 27% in 2011 to 10%
in 2013 although the actual total
value of their investments has
increased significantly + 2 billion
euros.

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Disposable income
So, they continue to be the big
spenders with the disposable
income to purchase high value
items.
They like to treat themselves – and
it’s not chocolate – it’s with the
latest gadgets, fast cars or high
fashion.
Take the Affluent in the Middle
East for instance. 14% spend
1,500 euros or more on jewellery
in a year, which is similar to the
amount of what the European
affluent wear on their wrists.

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The value of their main watch is
nearly 1,000 euros, and they are
planning to spend even more on
the next one.

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Spending on cars
Whereas the population are
holding off replacing cars, the
affluent still have enough to spend
- in Europe, 1.7 million are
planning to spend over 50,000
euro on a new car in the next 12
months.
These are the people that keep the
industry – luxury cars that make
the most money for the
companies…

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Travel
Travel is widespread among
affluents in the USA, both for
business and pleasure, with 86%
having made at least one round
trip in the last year. Two thirds
agree that it is worth paying extra
for comfort and service when
travelling. It would be fair to
describe The Affluent as ‘Global
Citizens’ – they travel frequently,
speak multiple languages and
consume international media.
Among the Affluent in Asia Pacific
there is a 14% year-on-year
increase for the number of air trips
taken. So they do continue to go

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on holiday, the amount of holidays
taken in the past 12 months
remains the same.

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Business is central
The Business Elite being a
different audience, think and
behave differently. How they’ve
reacted and adapted to the
economic changes is distinctive
and unique.
So what was on their mind… As
per their name, Business is
central. They live and breathe it.
Change is something that the
Business Elite actively embrace –
it allows them to develop and
progress.

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Challenges facing companies
They’re not thinking about cutting
their weekly shopping bill or
worrying how they will afford to fill
up their car. They are looking at
the challenges facing their
companies and how they can
successfully manage these.
They are embracing change,
adapting their companies’
strategies as the world evolves. In
2010 almost 8 in 10 cited volatile
markets and managing economic
uncertainty as one of the biggest

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challenges facing their company.
This has fallen to 60%. Focus is
shifting to other areas such as
technological advancements and
employee retention.

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Fuel and raw materials
With continued uncertainty in the
middle east putting pressure on oil
prices it’s maybe not surprising
that the number of Business Elite
citing the price of fuel and raw
materials as one of the biggest
challenges has increased by a
third since 2010. Fuel and raw
materials allow their companies to
produce technologically advanced
goods and services that keep them
competitive and thus profitable. It’s
all a very long way away from your
local garage forecourt…

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BRICS
The 21st century has also
heralded the emergence of new
economies and the BRICS
acronym – widely regarded as a
symbol of the apparent shift in
global economic power towards
the developing world. These
emerging economies present new
opportunities to the Business Elite.
In fact, in the last 6 years we’ve
only seen the business they do
with the BRICS grow. China and
Brazil are driving this with the
amount of business done with
these countries increasing by over
25%.

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Salary and net worth
A by product of being one of the
most senior business executives in
a company is a high salary and net
worth. Given the change in
economic conditions we saw the
European Business Elite take the
biggest pay cut we’ve seen in a
while between 2008 and 2009.
However, the number receiving
shares from their company
increased by almost a fifth. So
they are still benefitting.
It’s all a very different world they
exist in. They don’t have to watch
what they put in their shopping
trolley.

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Business Elite wealth
However, given the differing
economic situations around the
world we’ve seen some shifts in
the Business Elite’s wealth. 2010
was a pretty significant year.
Asia’s growth saw the proportion
of millionaires amongst the Asian
Business Elite overtake that of
their European counterparts for the
first time ever. And the gap is only
getting wider…

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View of economy
The Ipsos Global advisor study
reported that 27% of the
population view the economy as
good – the corresponding figure
for the Business Elite is 42%. The
Business Elite are closer to what is
happening. They have a more
informed perspective, meaning
their views change more quickly.
The general population are slow to
change behaviours, such as
purchasing habits that they have
been accustomed to in the more
difficult economic times.

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Purchasing behaviours
And the Business Elite’s
purchasing behaviours are
different to that of the population.
A couple of weeks ago a Moet and
Chandon grand vintage collection
sold for over £147,000 at
Sotherby’s. And Asia’s love affair
with fine wine continues – the
Asian Business Elite leading this
with a over a 60% increase in
ownership of fine wine since 2008.
They spend on what they want –
economic slow down or not.

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Technological change
We will now look at the quickening
pace of technological change and
the specific affect this has had on
the Affluent and Business Elite.
But first lets just put into context
where we are now…

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People online
There are 3 billion people now
online. This allows better
communication, facilitating the
sharing of ideas allowing the
digital evolution to continue at an
ever faster rate.

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iPhone
Apple launched the first iPhone in
June 2007 – over six years later
24% of the population now own
one.
30% of the UK population now
own a tablet, up from 6% just two
years ago.

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Multiple screens
So people are now accessing
content through multiple screens.
Connected devices are becoming
ever more fragmented creating big
opportunities, but also big
challenges! Mobile is enabling new
forms of entertainment,
communication, media and
commerce.
It’s changing how we consume.
But not everyone is at the same
place in terms of technological
evolution…

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Digital adoption
When it comes to digital adoption,
the affluent are at least 12 months
ahead, they are early adopters and
using multi-screens has been a
regular part of the lives for
years. 9 out of 10 own a mobile
device. Given their busy lives Ecommerce is massive time saver
and they purchase items from
flowers, holidays and the latest
smart phone online. The average
value of their online purchasing in
the last 6months has increased by
over 50% in the last 2 years, with
over 76% spending a minimum of
E100. This will undoubtedly
continue to rise.

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Social networking
The affluent actively pick and
choose which content they want to
engage with, for example social
networking, access to this content
is available anytime, anywhere.
And regardless of geography and
preference, online social venues
are also increasingly a place to
communicate and socialize with
friends, colleagues but also
customers and prospects. Social
media continues to grow rapidly,
the top 3 network sites have all
increased universe sizes in the last
12 months.

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While social media is undoubtedly
growing, the top 4 networking sites
among Europe’s affluent are
Facebook, Google+, LinkedIn and
Twitter.

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Daily life has become more digital
It is a fact that reading print and
watching TV still make up a large
proportion of upscale media
consumption, but at the same time
daily life has become more digital,
whether in the office, at home or when
travelling on business or for pleasure.
Mobile digital connectivity is the norm
among Europe’s affluent, 90 own at
least one mobile device, whether it be
a smartphone, tablet, e- reader or
netbook.
The growth of digital platforms has
had 2 primary effects:
Affluent consumers who previously
could not easily purchase a particular
print title or have a connection to a

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specific channel can do so easily via
the internet.

Shifting consumption patterns across
platforms. Consumers are able to
access content via different platforms
allowing consumers to access the
content they want on whichever
platform is most convenient.
No matter where they are, the affluent
are always connected, over 16.4%
using an average of 3 devices. Given
the multiplicity of devices in use, it
becomes increasingly important for
brands to have an online presence
that is optimized for computers, tablets
and mobile phones, alike.

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Business model innovation.
Technology also plays a big part in
the Business Elite’s lives. It helps
their companies to innovate and
remain profitable.
Just over two years ago
(September 2011) Snapchat
launched. It was said that
Facebook offered to buy it just the
other week for US$3 billion. That’s
big growth quickly. And while
people are sharing 350 million
pictures a day on Snapchat, it’s
probably safe to say it’s not the
Business Elite.

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However, the Business Elite are
still very interested in companies
like this – if not involved in them,
they are learning from them.
There’s David Butler here the VP
of Innovation at Coca-Cola –
obviously in his Sunday best! He’s
said the only way to get this kind of
growth is through business model
innovation.

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Multi-screen behaviour
They are also using technology
themselves, given it’s many
advantages such as helping them
keep connected while on the
move. They are ahead of the curve
in terms of multi-screen behaviour
– usage is increasing. The number
owning both a smartphone and
tablet has almost tripled in two
years to 57%.

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Device usage
And they’re using their devices for
a variety of activities from watching
TV to reading. And interestingly to
play games, and to shop…
This technological transformation
is changing the lives and
behaviours of both the affluent and
business elite.

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Traditional platforms
However, while we see this
increased use of digital it’s
important to remember that they
are also continuing to consume by
more traditional platforms such as
print and TV, remaining loyal to
those brands they have
progressed through life with.

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The future
In just the last few years we’ve
seen dramatic changes taking
place and how both the affluent
and elite have reacted to this. A
question that remains is what will
happen in the future? Of course
we can’t be absolutely sure but…

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Connected devices
There’s going to be even more
connected devices such as
watches and smart glasses
meaning that how we consume
content and go about our every
day life will continue to evolve. The
Affluent are going to be among the
first to buy these and the business
elite the first to make them.

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In summary
So, in summary if there’s three key
things to remember…

Number one! The Affluent include
the Business Elite amongst their
number. And the Business Elite
are, of course, Affluent. Yet they
are different in several ways:
The focus for the Business Elite is
on their business lives – the
investment decisions they take,
the business purchases they are
responsible for and the global
business travel they undertake.

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The Affluent are a much broader
group and the focus there is on a
much wider look at their
consumption and usage of
products and services.

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Key take-aways
Secondly. Despite everything
going on around the world, the
affluent, being the highest earning
and spending individuals, are the
most important consumers for a
wide range of goods and services.
And, as the most senior business
people in the worlds medium and
large companies, the Business
Elite remain a key audience for
B2B marketing and
communications, travel, finance
and luxury goods.

Key take away number 3. Both
audiences consume large amounts
of content through a variety of

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platforms and more often than not
are ahead of the curve in terms of
digital adoption.

James Torr
Director of Sales and Marketing
t: +44 (0)20 8861 8173
e: james.torr@ipsos.com
www.ipsos-mori.com

Nathalie Sodeike
EMS Director
t: +31 (0)20 6070 822
e: nathalie.sodeike@ipsos.com
www.ipsos-nederland.nl/ems

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