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  • Terry @ KAI2

Affluent Millennials - Welcome to the Party!

Updated: Apr 22

We’ve read all of the articles and have seen the research on why wine brands are struggling to attract Millennial drinkers.


The problem is that for their age range of 27 to 42, we have been lumping the behaviors all together as the same, and marketing to them in the same way, resulting in a pessimistic view of younger wine enthusiasts.



Millennials entering their thirties welcome wine as part of their lifestyle.


In fact, there have been reports that older Millennials over 30 in the U.S. have been reversing this trend and consuming more wine for purchases over $15 a bottle. Segmenting consumers further, a surprisingly young group of high-end Millennials have been spending more per bottle on average than Baby Boomers.


High-End Millennials - A Sweet Spot for the Wine Industry


High-end Millennials spend on average $65 a bottle compared to Baby Boomers that spend on average $37 a bottle. One-third of upper-income Millennials are core wine consumers (meaning they drink wine at least once a week or more), and they now account for a larger percentage of that key core wine consumer segment than high income Baby Boomers (Wine Market Council 2024 Study).


We’ve seen this high-end Millennial be called “affluent”, "upper income", or “savvy.” So, who are they?


Affluent Millennials have between $250,000 to more than $1 million in investable assets. Meaning some may own real estate and others might have a healthy 401K from their employer. Especially here in the bay area with high paying companies like Apple, Google, and more all around us, that's not unusual.


They go to great lengths to appear wealthy and impress others.


Despite many of them having high housing costs, student loan payments and compounding credit card debt, according to Wells Fargo, the Affluent Millennial still enjoys adventure. Wells Fargo has reported that roughly 41% admit to funding their lifestyles with credit cards, compared to just 28% of Gen Xers and 6% of Baby Boomers.


Although they may appear to be spenders, studies have also shown they are on course to become the richest generation in the U.S. alone, thanks to the property assets accumulated by the generations before them. While they wait for their inheritances, many Affluent Millennials are feeling the economic impact. Smaller items like handbags may have eased, but the fine wine market has grown for this audience.



A Marketing Opportunity for High-End Millennials


We have discovered in the luxury hospitality industry that the Affluent Millennial still seeks fun, adventure, and personalization, and are drawn to places where they can visualize the experiences they will have. They like to discover new places to go to and be the first ones on the scene. They are looking for the next experience and the next one after that.


That also translates to seeking new experiences in wine, which we call “moments in wine”. So, what does that look like?

 

First, let’s talk about what it is not. Moments in wine should not start out as transactional, like discount prices, free shipping, and other offers to purchase now. And, it’s not about the wine tasting notes that can be hard to decipher, or they don't speak the language as well for this younger affluent wine taster.

 

These offers might generate short term results, but real engagements begin when a consumer’s interest is piqued by a compelling moment, which we believe is by leveraging the power of video storytelling experience. This is strategically crafted content designed to capture attention within seconds and leads the consumer down an authentic path to purchase.


Video continues to be a mega trend on the same order as mobile. The key is putting these experiences in the palm of their hand.  At KAI2, we create those signature moments.

 

How Do We Do That?

 

It starts by authentically living their values and creating signature experiences that are human, meaningful and memorable, and go beyond just the product or service being offered.

 

These are special moments to remind people, like the Affluent Millennial, that they matter, that you value their time, that you intend to build a relationship built upon exceptional experiences.


Learn what matters to your customer. Study the best experiences in the world, beyond your industry. Winning customer journeys and experiences will be rooted in these signature moments.

 

At KAI2, our expertise is in crafting those signature moments for brands and turning them into video storytelling, video infographics, video moments of truth, and more.



 

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