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By Chesa La’O, Contributor
It is common knowledge that a small percentage
of the population, the socioeconomic classes AB or the
Philippines’ most affluent, continues to drive personal
consumption expenditure in this country. Considering the size of
this group, marketers often treat it as a single and homogenous
niche.
McCann Worldgroup Philippines challenged this
convention by initiating a McCann Pulse study that delves into key
differences and sub-groups within the affluent market. The study,
entitled “AFFLUENZA: The Different Faces of Affluence,” targeted
managers, managing directors, CEOs, vice presidents, Filipino
entrepreneurs, Filipino-Chinese businessmen, Spanish mestizos, new
rich, old rich and nouveau rich.
Understanding these differences in the affluent
market will enable today’s marketers to develop more targeted and
relevant marketing communication strategies.
The working members of the AB market have
different takes on the concept of success. Some of them work to
impress, some live to work, while others have the joie de vivre
attitude.
Those who work to impress measure their success
by how society affirms, validates, and perceives them. They find
satisfaction in being ahead and on top of others, especially at
work. Success at work comes in the form of a company position or
material possessions that manifest their financial success. This
mindset is common among white-collar executives in the
highly-competitive corporate world.
As opposed to people who work to impress, people
who live to work compete mainly with themselves. They measure
success by how much they achieve in business. They get inner
gratification and personal pride whenever they meet their goals. The
best examples are businessmen and Filipino-Chinese who have a
passion for building something from nothing. The Filipino-Chinese in
particular have the strong desire to succeed in life and in business
by working hard. This is because they do not want to experience the
difficulty of being “second-class citizens” ever again, as they
were considered in the past.
For those who have the joie de vivre attitude,
success is not about societal validation or business gains—it’s
all about enjoying life to the fullest. This is generally inherent
in affluent Filipino-Mestizos who are accustomed to living a good
life. They aim to make their money work for them so they can live
without having to worry about work.
The distinctive philosophies on success within
the affluent market bring about a set of attitudes on the roles that
brands play in their lives. Those who work to impress have strong
emotional attachment to high-end brands. They may use these brands
to project an image of affluence, high status, success, wealth,
self-worth, and identity.
On the other hand, those who live to work have a
more pragmatic take on the role of high-end brands in their lives.
As their primary goal in life is to succeed in business, brands
become tools for achieving business goals. Owning high-end brands
can build instant credibility among clients and colleagues, thus
giving them an edge in business.
Given key differences in the affluent market,
what then are the brands that make it to their purchase list? The AB
market finds that subtlety and exclusivity are key to their brand
preferences. AB entrepreneurs, Filipino-Chinese and Filipino-Mestizos,
all having intricate and evolved tastes, are partial to exclusive
high-end brands—those not usually known in the mainstream market
or are not readily accessible or available in the local market.
These McCann findings provide today’s
marketers with deeper insights and understanding of the psyche of
the affluent market, and marketers who are able to fully grasp these
differences hold the very key to engaging today’s affluent
consumers and influencing their brand choices.
The author is associate strategic planner at
McCann Worldgroup Philippines.
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