Leonard, 26 years old, Germany:
I come from a family with money in 3rd generation. My great grandfather started our family business. So I grew up with money but learned very quickly it does not grow on trees. It is a great responsibility and should not been taken lightly. I don’t want to loose what my parents build for themselves. On the contrary I want to be able to give my children what I had.
So I am a risk adverse investor.
Money can give you great pleasure and gives you opportunity to escape the routine of daily life. A weekend trip to visit friends is not something I do once a year but once a month. That is great and helps me to handle my work life balance. I don’t look at the price when I go to the supermarket or when book a hotel. But this does not mean I drive around in a Ferrari and don’t work for my living. I started working right after university and I am currently living break-even, meaning I only spend what I earn, at the job, at the stock market or through dividends. So I don’t touch the savings. It is important to find this balance and not go crazy with the money. I have seen many people, even at my young age, lose all they possessed. And it’s much harder to trade down than to trade up!
I didn’t change my consuming behavior because of the crisis. I just became even more careful with my financial investments. As I have worked for an asset manager during 2003-2005 I knew how to judge such a situation and did not freak out with all the negative media. I also lost about 20% of my cash at the stock market in the 2nd half of 08 but I knew that sooner or later the tides would turn. Currently I am up 10% in 09 and of course 06 and 07 were great years!
During my last visit at the Cannes I saw that the habits had change a bit. A lot of the new and quick money people were not there anymore, I guess they had run too much risky business in their portfolios.
I received all sorts of discounts while partying or chartering boats, like a bigger boat for the same price, or getting a good table in the club for a minimum spend of one vodka bottle where as it used to be a minimum of several champagne bottles. In 08 and 07 eastern Europeans often booked all the boats out. They have seemed to disappear this year.
Brands have never been important for me. A product has to catch me through form function and design and not through a brand name. I like the iPhone because it’s simple to use and has a great web application not because it’s an Apple. The same goes for clothes and cars.
I don’t plan shopping trips like going into town on a Saturday afternoon.
I buy what I need and like when I see it and when it fits the schedule.
I have been known for buying 2-3 shirts (often Etro because I love the designs) while waiting for my airplane or some furniture right after lunch on my way back to the office.
When I had a small car accident last year, the dealer offered to take my old car in without repairing it and gave me a great deal to buy a new one. It was great I didn’t have any hassle repairing the car. The insurance did not increase and I wanted to buy a new car soon anyway.
Truth: Not everyone is affected by the crisis. Some people have a solid base and see it just as a short-term downturn.
Opportunity: Some young wealthy people do not seek for luxury items per se, they just love the convenience to shop things spontaneous, wherever they feel attracted to it and have the feeling it fits to their lifestyle.
Challenge: Let us think about new places where we can meet these people not just for advertising but also for retailing opportunities.
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