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ET Insider – February 11, 2014

More than ever private jet travelers, or elite travelers as we like to call them, are the most lucrative market for luxury brands and service providers. With readers spending $10,000 per hour to fly privately, the over 600,000 readers Elite Traveler reaches each issue provide you a great way to make sure your message is in front of consumers who have the money to be good customers. With our Asia Edition, Elite Traveler Superyachts, our over 60 Elite Traveler Destination Guides at Elitetraveler.com, our global database of private jet owners and our award-winning custom marketing team, we would welcome the opportunity to be of help to you in making sure you get a bigger share of our reader spending.

With a Net Worth of more than $40 trillion, I hope you will agree elite travelers should be a key target for your marketing!

Follow Doug Gollan on Twitter:

https://twitter.com/EliteTravelerDG

In this edition:

1. Elite Traveler Helps Sell $30 million in Real Estate

2. Boston Consulting Group: Core Customers Account for 40% of Luxury Sales; Magazines Key

3. Magazines are the Number One influence on Luxury Consumers

4. Super Rich Drive the Economy Even When Gone

 

1. Elite Traveler Helps Sell $30 million in Real Estate

We love to get letters like this!

I would like to congratulate you and your team for the excellent advertisement we placed in Elite Traveler Asia Winter 2013 issue. The advert was to promote a Hong Kong event to sell off plan a London Property Development in Central London with an average price of £3 Million per unit.

Having never worked with Elite Traveler Asia before, our expectations were not high.

However, I am now pleased to say that during and after the two day event we sold 6 units, with a total value of £19 Million. This exceeded our expectations.

I would highly recommend Elite Traveler Asia as a proven and effective way to target the Wealthy Asian Market for real estate developers. In fact we intend to continue the relationship for all of our future projects.

Kind regards,

Antony Fung, Managing Director Antony Fung & Co. International Property Advisers

The Average Household Income to be in the Top 1% is $1,264,065—and one needs a minimum Household Income of $400,000; since 2008 the 1% have captured 95% of all income gains, according to The New York Times. Is your media plan reaching consumers who are heavy users of luxury?

2. Boston Consulting Group: Core Customers Account for 40% of Luxury Sales; Magazines Key

While there are 380 million luxury customers, Core Customers account for 40% of sales. Below are some highlights from a Reuters report on the BCG study:

Luxury goods consumers around the world will spend 880 billion euros (723.6 billion pounds) on personal items and experiences like holidays a year in 2020, 20 percent more than is spent on such goods today, a study said on Tuesday.

The biggest proportion of luxury shoppers – dubbed “core” consumers by Altagamma and Bain – spend at least 10,000 euros a year on luxury goods excluding cars and make up 40 percent of the market.

“Intrinsic” values of craftsmanship, quality and exclusivity have returned to being the most important factors behind a luxury purchase, influencing around 70 percent of purchases among the people surveyed. More than 80 percent of consumers surveyed now check the origin of a product.

Men have become keener buyers of luxury goods, the study found, and one man in four surveyed now buys jewelry, handbags, perfume and cosmetics for himself.

Romance is not dead, however, and 70 percent of gifts – which overall account for about a third of purchases – are made by men, for personal rather than business reasons.

Around 50 percent of luxury goods purchases are made outside the shopper’s home country.

Magazines, by the way, are the number one influence on luxury purchasing decisions according to the report (see below).

“”Elite Traveler is a key media source for us with well over $200,000 in sales we can track directly back to our ads in your magazine over the past year.” – Charles Krypell, Owner, Charles Krypell

3. Magazines are Number One influence on Luxury Consumers

From Boston Consulting Group’s recent survey of over 40,000 luxury consumers in over 20 countries.

Which of the following usually has an impact on your purchase decision?

1. Magazines – 50% 2. Word of Mouth/Social Media – 44% 3. Store Browsing -39% 4. Brand websites – 34% 5. TV and Movies – 24% 6. Invitations – 22% 7. Events – 20% 8. Celebrities – 20% 9. Seen Worn -13%

Considering the amount of time and money luxury companies put on holding events, I thought it was ironic that invitations to events are actually more influential than events themselves. The fact that magazines play such a heavy role in driving luxury purchasing is good from my perspective obviously. I think it also means advertisers and their agencies need to re-emphasize who is actually reading the magazines they buy space in versus the bells and whistles of the 360 degree marketing programs that in many cases are lipstick on a pig.

“From the Summer Edition of Elite Traveler Superyachts, as well as the Asia Edition including the May/June issue we are happy to report sales ($437,000) of the timekeepers we advertised” – Patrik Hoffmann, CEO Ulysse Nardin

4. Super Rich Drive the Economy Even When Gone

From The Financial Times:

London’s super-rich are “major contributors to the UK economy”, spending £4bn a year on goods and services, according to new research that underlines the financial impact of the capital’s wealthiest homeowners.

Some 1,338 homes were sold for more than £5m in the “prime” areas of central London in the decade to 2013. At least 60 percent of these were bought by overseas buyers, researchers from Ramidus Consulting, an economic consultancy, estimated.

But when they calculated the expenditure of wealthy householders, even those spending only a part of the year in the UK, the results – based on a survey of agents, “lifestyle managers”, concierge groups and luxury service providers – suggested substantial economic benefits for the local economy.

Owners of homes worth more than £15m spend £4m-£5m a year in the UK, while those with homes worth more than £5m spend £2m-£3m a year, Ramidus found.

Some of their biggest expenses were domestic staff, professional services fees, medical expenses, maintenance and decoration. School fees, insurance and holidays also figured in a long list of costs.

The spending figures applied even where householders were in the UK for no more than 90 days a year, because many household staff are employed throughout the year and maintenance of the properties continues in the owners’ absence.

All the best,

Douglas D. Gollan Group President and Editor-in-Chief Elite Traveler, the private jet lifestyle magazine Elite Traveler Superyachts, the superyacht lifestyle magazine Elite Traveler Asia, Asia’s private jet lifestyle magazine Elitetraveler.com, the private jet lifestyle online Elite Traveler Update, our weekly e-Newsletter to private jet owners worldwide

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