Luxury Institute Segments Wealthy Consumer Market; Marketer-friendly Format of Fed Data Provides Actionable Insights for Banks, Brokers, Realtors, Luxury Goods Firms, Travel Providers, Wealth Managers, and More

Business Wire, June 8, 2006

NEW YORK -- The New York-based Luxury Institute has released "A Wealth of Opportunity," a detailed, marketer-friendly, graphic report defining and segmenting the U.S. high net worth consumer market, based on data compiled from the recent Survey of Consumer Finances, a comprehensive survey of U.S. households conducted every three years by the Board of Governors of the Federal Reserve System with the cooperation of the U.S. Department of the Treasury.

"Finally, firms focused on wealthy U.S. consumers have a single point of reference that breaks down the size and scope of this valuable market, along with crucial dimensional data that describes each wealth segment," says Milton F. Pedraza, CEO of the Luxury Institute. "'The Survey of Consumer Finances' is easily the most thorough collection of demographic and financial data on American consumers available, but putting it to use in defining and segmenting one's market has traditionally been a daunting task of digging through the data for relevant insights."

"A Wealth of Opportunity" is presented in Microsoft PowerPoint format with charts, graphs, and tables breaking down the wealth segments by several critical factors. These include net worth, income, age, ethnicity, household size, educational attainment, marital status, the presence of children at home, etc... Additional key data important to marketers includes propensity to save, household debt ratios, number of vehicles owned, asset allocations, and value of real estate holdings. The Institute will also conduct customized analysis as needed.

The report takes into account that different marketers need different data. A luxury goods firm selling high-end apparel or jewelry would be interested in knowing that there are 18.5 million households with annual income exceeding $100,000 and that 91% of those households are married couples. A brokerage and insurance firm trying to attract clients, however, would place more emphasis on assets and focus on the 9.1 million households with a net worth of $1 million plus. Private jet, yachting and wealth management purveyors might want to know more about the 64,000 households with a net worth of at least $30 million.

"Any seasoned executive will tell you that the first step in creating effective marketing and selling programs is to measure and segment your market correctly to focus your efforts," says Pedraza. "We're pleased to have done the leg work for luxury goods and services purveyors."

About the Luxury Institute

The Luxury Institute is the uniquely independent and objective research institution that is the trusted voice of the high net worth consumer. The Institute provides a portfolio of proprietary quantitative research that guides and educates high net-worth individuals, and the companies that cater to them, on leading edge trends, wealthy consumer ratings and rankings of luxury brands, and best practices. To reach the Luxury Institute, please call 646-792-2669 or go to www.luxuryinstitute.com.