Pirates of the High Streets

Amidst the attacks on communities, businesses, properties and houses, one of the key characteristics of the recent rioting in the UK was looting – Theft, on a grand scale.  Another key characteristic was the socio-economic profile of those taking part in the looting - Young people, some perhaps involved in gangs, and others swept along for a variety of reasons that social-psychologists will illuminate in the months ahead. Social housing, unemployment, poor education and low incomes have also been touted as common factors amongst the looters.

Of course, what is reported and what actually happened might be different stories, and in time a fuller picture will emerge. However, looking at the affected city-centres in the UK, there is evidence that the looters targeted premium goods such as phones, A.V. equipment, jewelry, clothing and footwear. (There is also speculation that some of the disorder was organised using smartphones).

This may be a rather tenuous segway, but about 18 months ago Microsoft Advertising released a research study looking at purchasers of premium goods. Note: Purchasers not Looters! However, the name of the study: The Great Ignored, perhaps ruefully hints at marketing’s approach to the premium purchaser.

This is largely due to an assumption that it is primarily affluent people who buy premium goods. Our study found premium consumers are not necessarily wealthy: only 1 in 5 earn £50k or more per year, and the average household income of a premium buyer is £36k. This is because Premium purchase is not a demographic, it’s a behaviour. A behaviour characterised by consumers trading-up to premium brands in a handful of categories where they see value in spending more, and economising in other areas to afford it.
42% per cent of UK consumers buy premium at some point. Traditional demographic profiling of premium purchasers e.g. ‘ABC1’ would hit a third of them. This means that advertisers who rely on demographic profiling are missing a huge group of people who are not affluent, but still buy premium -- hence two-thirds of premium purchasers are ‘The Great Ignored’. Our research examines the Great Ignored and uncovers the full story, identifying and defining the premium mindset and making recommendations for marketers to adapt their strategies to both reach this elusive audience, and guide them to information that supports ‘premium’ decisions.

tim – Microsoft Research UK