The HENRY’s – high earners not rich yet, are predominantly becoming a relevant customer segment in the luxury industry. This new class of consumers is on the rise and likely to become key players in the ecosystems of luxury brands. Besides HENRY’s, Millennials, Gen Z and Chinese consumers are important groups already on the radar of many companies, vast investments are made to stimulate sales from these growing customer segments. Sustainability, digitalization, and brand history are amongst important topics to tackle these new customer segments and leave meaningful impacts on them. 

Who are the HENRY’s

Deloitte’s recently published report “Global Powers of Luxury Goods 2019” has identified a new customer segment in the luxury industry. The typical persona that incorporates this HENRY consumer is 43 years of age, has an average income of $136’000, and investable assets of under $1 million. They comprehend the digital world well hence their affinity for online shopping. They tend to spend large amounts of money on their purchases. 27% of the HENRY’s are said to be millennials with a purchasing power of roughly $200 million, according to the U.S Chamber of Commerce. This is a very powerful subgroup to reach out to. Simply put, they are indulgers of the luxury lifestyle aspiring to move up the financial ladder and have an influential impact on society by taking on the trendsetter role. It is claimed that they are on the rise to become some of the wealthiest individuals in our society, hence this customer segment has a huge potential for luxury brands. It is thus key for companies to build close relationships with these customers to harness their full potential in the foreseeable future. 

Digital marketing is key to reaching HENRY’s

94% of millennials own a smartphone, the whole topic of digital thus plays a huge role when it comes to influencing these buyers. Their purchase decisions are largely influenced by how well your product placement is online. Smooth transitions between mobile and desktop versions are key to keep these consumers tied to your brand. The whole marketing approach has changed with this new customer segment. It’s no longer just about selling a product but a service that comes along with it, it’s about offering an experience that is far more promising. This generation heavily uses social media to express their preference towards brands and thus it is key to create captivating content that is engaging with the consumer and visually also pleasing. Emotive storytelling on experiences is important to grab the attention of HENRY’s for example through influential people that endorse such luxury products. Their attention is also drawn by companies that attempt to tackle social issues and are not solely focused on profit-making. 

Core values of HENRY’s

According to Deloitte, these are amongst the core values of HENRY’s that help establish trust and loyalty:

• Authenticity, relatability, sustainable practices
• Topics like the environment, production processes, labor practices, animal welfare
• Having a positive impact on communities is highly influential on the purchasing decision of HENRY’s

These customers are more likely to pay a higher price for a brand that has established an ecosystem being environmentally and socially conscious. Hence this is a clear indicator for luxury brands in which direction they are to innovate. The values mentioned beforehand are carefully considered by HENRY’s and evaluated, whether they match their persona. It’s no longer all about the wealth that one can portray with a specific luxury brand, the whole individualistic concept of luxury is becoming more significant. It’s about expressing yourself and becoming part of a community that stands for the same values that you have. It’s about sharing your experience and history with others and connect on a deeper level than just luxury as a status symbol. 

Features of Adresta, relevant for HENRY’s 

The question that arises is, will HENRY meet Adresta? With Adresta’s vision of a digital ecosystem, HENRY’s would be a perfect fit:

1. Be part of a community sharing a similar vision, discuss and share with your friends and receive the latest news of the watch industry 
2. Manage the history of your watch and actively be a part of after-sales services, by being able to track the service and maintenance of your watch
3. Access the leading and secure watch ecosystem where you store your certificates of authenticity 
4. Store all your important documents, images digitally in one place
5. Have access to the first digital watch insurance (Get your all-risk insurance here)
6. Create your wishlist of watches and be the first one to be informed about new releases

It is of utmost importance, for us Adresta, to make participants of our ecosystem feel welcome. Our community is not just limited to the primary market but also welcomes everyone that owns a watch. Subscribe to our newsletter now and we will keep you updated with the newest insights of Adresta’s developments.