A new study by American Express sheds light on the affluent space in Asia and what drives wealthy people to do what they do. It reveals insights into lifestyle attitudes, behaviours and expectations.
As Asian economies prosper, so do its people. Premium affluent customers are the biggest growing segment in the region, according to Peter Kapoor, Regional Vice President & Area Market Head of Establishment Services International, Singapore/India/Indonesia, for American Express International.
Which is why American Express embarked on an initiative to track the pulse of these customers. "Inside the Affluent Space", a study to measure the changing life expectations of the affluent consumer in Asia, will cover Singapore, Hong Kong, India, Australia, Japan and India.
Findings are in for Singapore, Hong Kong and India. Mr Kapoor, who shared the results with a hospitality sales and marketing audience in Singapore recently, said: "The more they make the more they expect from life, including their travel experiences."
How many affluent are there really?
In 2005, 42 million mass "affluents" (defined as individuals having liquid assets of US$50,000 to US$300,000) lived in the Asia-Pacific region. Together, they command a total wealth of US$4,695 billion.
Included in this figure are 5.3 million high net worth individuals (liquid assets of more than US$300,000) who command a total wealth of US$4,801 billion.
By 2008, it is estimated that the two segments will grow to 47.6 million and 6.2 million respectively, for a combined worth of US$11,488 billion.
In Singapore, there were 202,500 individuals with liquid wealth of more than US$200,000 each in 2004. This is expected to increase to 272,800 individuals by 2009, growing annually by 6.4%.
Together, they account for a cumulative liquid wealth of US$148.4 billion in 2004, which is expected to balloon to US$206 billion by 2009.
In terms of millionaires, Singapore had 28,200 of them in 2004 and their numbers are expected to swell to 40,050 by 2009.
The common denominator in the affluent number
The study showed lifestyle attitudes, behaviour and expectations of the affluent customer in Asia vary. But, while each market revealed different insights, Mr Kapoor said there were core common principles.
"The affluent value equation is evolving - it's moving from the tangible to the intangible. People are looking for stories, emotional connections.
"The key is to relate to the affluent customer in each market. It is not a mass market, but they share an attitudinal mindset. And managing innovation requires insight, intuition and integration between brands and the product and the service being offered."
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