Appreciating the Generation X Affluent Consumer
Feature by FerebeeLane
Generation X is often the forgotten generation of luxury consumers, yet over the next 10+ years, this generation will continue to be at its peak earning power and be the first generation to benefit from the Great Wealth Transfer.
In the US and the UK alone there are over 20 million affluent Generation X consumers, controlling over 30% of the total wealth, with an additional £15 trillion being inherited by this generation over the next decade. However, even with the purchasing power and influence the generation has now, and will have for years to come, it’s frequently neglected by brands as a group of affluents to focus brand building efforts on.
That lack of prioritization by marketers has a cost not just in terms of market share, but in understanding how to market to, arguably, the most powerful generation of affluent consumers of today. This is not to imply marketers should ignore Millennials or Gen Z, instead Generation X should be elevated in importance and commitment.
There is much written about an affluent consumer’s preference for experiences or goods, whether it is craftsmanship or scarcity that is appealing, or questioning if luxury purchases are driven by status-seeking motives and group assimilation. While discussions around those points are informative and provide a small measure of value, each discussion, or even all of them as a collective, is not distinct enough to effectively understand a particular generation of affluent consumers for a marketer.
So who are the affluent consumers within Generation X and what matters to them?
And what do luxury brand leaders need to understand in order to effectively engage this audience?
From Sacrifice to Success
Often considered the greatest entrepreneurial generation in history, Generation X made their own wealth, with over 80% of millionaires being self-made. Even though the generation will inherit trillions over the next decade, their confidence and adaptability in pursuit of success is a defining characteristic in how they view the world, and their place in it.
However, financial accomplishments are not what solely defines this generation, it’s the sacrifices they made in pursuit of trying to be perfect parents and build successful professional lives and businesses amid a world that accelerated throughout their lives in an unprecedented way.
The profound impact of Generation X growing up in the analog world but becoming adults in a digital world is often overlooked. No other generation has had to bridge such divergent worlds in pursuit of success and personal fulfillment. That requirement shaped a generation to become independent, confident, loyal, and even skeptical as a result of the rapid change.
And most importantly, this generation feels the responsibility to give on both micro and macro societal levels, from caring for aging parents to being the generation that can help reconcile a very divisive global community.
The challenges and required adaptations to life have been ever-constant for Generation X, and those who have reached a level of wealth and financial affluence feel a sense of accomplishment, personal satisfaction, and quiet pride in their achievements.
Those feelings have come to influence this generation of affluent consumers in the relationships they expect, and demand, in exchange for their loyalty to luxury brands. They expect craftsmanship, meaning, and quality like all other affluent consumers no matter the generation, but where Generation X differs is they also desire an appreciation for their relationship with a brand.
Appreciation Over Personalization
Generation X, more than any other generation, wants to know that they matter to the luxury brands they choose to align with. Mattering on a very personal level because this generation believes they have earned a thoughtful relationship. This generation knows they have choices and will discern which luxury brands value them as people and not simply as consumers.
Many marketers and their agency partners fall victim to thinking that a personalization strategy is personal and communicates respect for the consumer. A personalization strategy that is methodically planned, scripted, and scheduled is never personal, and this generation of affluents understands the difference and expects an interaction that is unique to them.
Thoughtful is personal and it delivers what affluent consumers of Generation X desire - appreciation.
Moments that Matter
Traditional integrated marketing remains an important component of a comprehensive plan for luxury brands, but to fully engage an affluent Generation X consumer they must feel appreciated.
Thus remains the question: how does a luxury brand build an appreciation strategy?
The answer is found in those moments that matter.
Moments that can empower an affluent Generation X consumer to grow closer to a brand or a moment of very personal engagement to where the luxury brand almost becomes human.
One such master of those moments is Maggie Harrison, the owner and winemaker of the acclaimed vineyard Antica Terra. Antica Terra is nearly impossible to acquire for both sommeliers at three-star Michelin restaurants and passionate individual wine connoisseurs. While it can require years on her waiting list for a small allocation, her annual offering letter describing the harvest enables her to open up her soul and connect on a very personal level.
While her wine is rare, she is not leveraging scarcity to create demand. Instead, in those annual letters sent to those on the waiting list and those who have allocations, she reveals to the reader what is raw and uniquely original to her wines and that particular harvest. This depth of honesty and character is a form of appreciation and trust that Maggie is gifting to her clients, her fans, and her friends who have never met her.
Beyond the annual letters, Antica Terra empowers those same people to matter because even though a client receives an allocation once, it does not mean they will always receive an allocation. Yes, purchasing from the allocation is important, but building a relationship beyond the purchase with Antica Terra is almost as important to remain on the allocation list. So little of Antica Terra is produced that the hope is they allocate and sell it to those who are as passionate about their wine as they are.
For Antica Terra, there’s a closeness between the brand, the wines, and their clients. Each fully appreciates and respects the other, and speaks to the heart of the affluent Generation X consumer and the type of relationships they desire with luxury brands.
FerebeeLane is a brand strategy and creative agency that works with premium and luxury brands to engage the discerning affluent consumer. For the past 20 years, the agency has collaborated with beloved brands such as Le Creuset, Blackberry Farm, Miele, The Ritz-Carlton, Baker McGuire Furniture, Vail Resorts, Chimay Trappist Beer, as well as numerous other Relais & Châteaux properties, and other luxury brands throughout the home.
To learn more about FerebeeLane or our perspective on the discerning affluent consumer please contact Josh at josh.lane@ferebeelane.com