The Herman Trend Alert
June 14, 2017
Not-So-Conspicuous Consumption on the Rise
When our author Joyce was growing up, the phrase, "Keeping up with the Jones" was the reality of day. If you wanted to be accepted into certain peer groups, you consumed visibly. The type of car you drove, the brand of clothes you wore, the street on which you lived, these conspicuous displays of status and others, all mattered. Now, we are beginning to see major changes in that attitude.
What is behind that shift
With "the democratization of consumer goods" luxury brands---often copied---are far less useful for displaying status. Many people in the middle classes can now afford to buy impressive TVs and designer handbags. Both upper and middle class consumers can now afford to lease expensive cars, take exotic cruises, and travel the world. Given that luxury brands are now accessible to many people, the rich have started using different, less conspicuous displays of wealth.
The rise of The Aspirational Class
Though Russian oligarchs and affluent billionaires will still demonstrate their wealth with large estates, super yachts, and Rolls Royce automobiles, there is a new class of elite emerging. According to Elizabeth Currid-Halkett, professor at the University of Southern California and author of The Sum of Small Things: A Theory of the Aspirational Class (Princeton University Press 2017), this trend is being driven by "a well-to-do, educated elite", that she calls the "Aspirational Class". The Aspirational Class values "knowledge and building cultural capital", plus their spending habits are different as well. These folks prefer to spend on services, education, and other types of investments in themselves, rather than “purely material goods”. The author calls these new status behaviors "inconspicuous consumption".
What The Aspirational Class is spending on
Though the rise of The Aspirational Class is not limited to the United States, this trend appears to be strongest in the US. According to the US Consumer Expenditure Survey, since 2007, the country’s top one percent (people earning more than $300,000 USD per year) are spending significantly less on material goods. At the same time, middle-income groups (earning approximately $70,000 USD per year) are spending the same, and their trend is upward. Avoiding overt materialistic spending, the rich are investing significantly more in education, retirement, and health.
Education is/will be the benefactor
These intangibles, cost many times more than any designer handbag that a middle-income consumer might purchase. The top one percent now dedicate most of their expenditures to inconspicuous consumption. Plus, education accounts for a significant portion of these expenditures (almost 6 percent of top one percent household expenditures, compared with just over one percent of middle-income spending). In fact, since 1996, spending of the top one percent on education has increased 3.5 times.
Spending on other non-status items
From reading costly magazines to choosing organic foods, The Aspirational Class is voting for inconspicuous consumption with their wallets.
The implications are fascinating
Obviously, members of the Aspirational Class will drive increases in spending education, organic foods, and other less conspicuous goods and services, including physical and financial fitness. We are already seeing some television commercials appealing to The Aspirational Class and we expect to see more, acknowledging peoples' desires to invest in improving themselves.
© Copyright 1998-
by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or http://www.hermangroup.com. To sign up, visit http://www.HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."
HR PROFESSIONALS AND RECRUITERS: BECOME A CERTIFIED EMPLOYEE RETENTION SPECIALIST
Help your employer/client win The War for Talent. By becoming an Employee Retention Specialist, you will learn everything you need to know about Employee Retention from the woman who wrote the book on becoming an Employer of Choice. Joyce is putting together two classes featuring the latest research. Call Carol right away at 336.210.3548 or email firstname.lastname@example.org to express your interest. We are putting together a class for late June and another for August, so don't delay!
OUR VERSATILE TRANSLATOR ROCKS!
Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at email@example.com or contact her on SKYPE at marianacampora.
GLOBAL HEALTH FUTURES: PEOPLE, PLANET & BEYOND---JULY 27-29, 2017
Learn what comes next for the future of health. Attend the North American Gathering of the Association of Professional Futurists (APF) in Seattle, Washington. Attend this star-studded event with amazing speakers (and attendees) and thought-provoking activities. Space is limited! For more information and to register, visit https://apf.org/event-details/2550576/.
To read this Herman Trend Alert on the web: http://www.hermangroup.com/alert/archive_6-21-2017.html.
Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.
New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service. Click here to sign up for the Herman Trend Alert.
Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts