Selling to the 1.3%

Just because you’re rich doesn’t mean you want to bleed money on every purchase. Canada’s wealthiest 1.3% of households—the 174,000 with a net worth of at least $1 million, excluding equity in their principal residence—economize in some areas. Although these households’ net worth averages $1.97 million (versus $124,000 for other Canadians), 87% fly economy for personal flights. They’re far likelier than other Canadians to belong to book, coffee and gas-station loyalty programs. And they’re happy to buy used exercise equipment, being 121% likelier than average Canadians to shop at Play It Again Sports.

Still, they do spend big in many areas. With discretionary incomes averaging $130,000, versus $41,000 for other Canadians, they can afford to. (Discretionary income is take-home pay, less shelter costs and food eaten at home.) As the chart at right shows, millionaires shell out a lot for the trappings needed for a vacation home, dry cleaning for their high-end clothing, and watching and playing sports. They also spend freely on health and cosmetics products, such as vitamins, health food, pedicures, facials and hair colouring.

Those advertising to millionaires need to grasp their distinct media habits. Print Measure­ment Bureau and Environics Analytics research reveals these households are avid newspaper readers, especially of business, fashion and travel sections, and fans of sports radio. They’re no TV addicts, but they do tune in for business news, sitcoms, cultural programs and extravaganzas like the Academy Awards. They’re above-average web users, notably of newspaper, investment and travel sites. They’re also above-average users of public transit, because they’re concentrated in big cities and have more children living at home.

Your marketing to millionaires should push their hot buttons, such as a craving for things that are smart, savvy and leading-edge. And this is a group that tells researchers: “I am better informed about nutrition than the average person” and “I refuse excess bagging and wrapping when shopping.”

Produced by PROFIT in partnership with Environics Analytics.