A study by Cap Gemini, cited by Reuters, shows the combined net worth of the growing number of millionaires and billionaires in the world, stands at $37.2 trillion, as of the end of 2006. And they're willing and able to spend their money on the latest products and services designed for their wants and needs.
Using the Forbes Cost of Living Extremely Well Index (CLEWI) as measured against the U.S. consumer price index, it shows that over the last 30 years, the cost of luxury goods and services has increased by twice as much as regular consumer goods and services.
The U.S. consumer price index is now at 365, while the CLEWI has now reached 772.
What this tells an online marketer is it's a tremendous market to tap into. The trend of increasing prices tells the story of continual demand for high quality goods and services.
The steady increase of the 30-year period, starting in 1976 for both indexes, tells us that this is a trend that can be counted on for years ahead. It just hasn't really changed at all over that three-decade period.
This demographic is so powerful because they expect and have been socialized into accepting the growth rate of the costs related to their purchases. It's built into their psyche.
What's fantastic about this as an opportunity, is the global economy is really just getting started. It will create a lot more wealthy people over the decades ahead, and there will be no end to the products and services they demand and want; and are more than willing to pay for.
If you have any inclination toward wanting to serve this market, it'll be a winner for a long time.
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Tracked on: September 24, 2007 7:04 PM | Permalink to Trackback