The web provides a great opportunity for companies wishing to engage today’s wealthy individuals, says research collated by Barclays Wealth as part of its sponsorship of the Walpole Luxury e-Business Forum on Wednesday 8th October.
Barclays Weatlh, 09 October 2008
Barclays Wealth’s own data, developed in collaboration with the Economist Intelligence Unit, shows that the wealthy are relying heavily on the internet, with almost three-quarters of wealthy consumers using the internet for researching and gathering business and financial information. In addition, almost half of the wealthy individuals surveyed use the internet for their news consumption, tracking world news and company news as well as stock analysis.1
The power of the web is also reflected in how the wealthy make investment decisions. A recent study by Cogent Research in the US found that enabling people to share content, personal opinions and insights, social media and online technology were having an increasing impact on wealthy investors’ attitudes and behaviours. Nearly two-thirds of investors with investable assets of at least $100,000 say that online peer-generated content about personal investing and finance influences their financial decisions. According to the research, 58 percent of polled investors have increased investments, while more than one-third reduced their investments in a specific fund or company as a result of the online opinions of their peers.2
In fact, according to a recent study of online behaviour in the US by the Luxury Institute, it was found that wealthy individuals tend to spend more time online than any other demographic group.3
Wealthy individuals are also increasingly shopping online. According to a May 2008 report from Forrester Research which was developed in collaboration with Walpole, “Benchmark: Luxury Sector eBusiness Adoption”, the wealthier the customers, the more likely they are to both research and purchase goods online. The majority of affluent net users in the US, Western Europe, Japan and Australia regularly shop online. They also use the internet even more regularly to research goods and services before buying.”4
Forrester also writes that “the growing number of affluent and high-net-worth individuals have earned their wealth rather than inherited it and they come from a wider range of social backgrounds… Their shopping behaviour tends to mirror their social values; they seek luxury goods and products based on research and comparison shopping, which favours the online channel, rather than impulsiveness, where the in-store experience dominates.”5
Barclays Wealth has been seeing an increasing desire from its clients to manage their lives and investments online and is dedicated to continually developing this side of its offer. Its online services complement the personal one-on-one client relationships, as well as deepening relationships with clients whose initial interface with the company is through its highly efficient e-trading platform.
Mark Kibblewhite, Managing Director at Barclays Wealth said:
“Although our clients have a very personal relationship with their private banker there is a definite expectation that this comes with the support of a sophisticated yet user friendly online function. We expect that with the advent of web 2.0, we will see further interest from our clients in having a web interface with their wealth manager and we are continually building on our online capabilities to deliver this.”
“There is a clear opportunity for businesses wishing to engage with the wealthy consumer to interact with them in the online environment. Conversely, companies must be careful to avoid a failure to embrace what has already become an integral component in how wealthy individuals manage their lives.”
To arrange an interview or for further media information:
Barclays Wealth
Nicola Hankey
020 7114 9813 / 07775 548418
Cohn & Wolfe
Will Spratt
020 7331 2367
1. Barclays Wealth Insights Volume 6: 'Breaking the Mould, A question of personality' is based upon the findings of a survey of 2,300 high net worth investors, 2008
2. Cogent Research, Social Media’s Impact on Personal Finance and Investing, 2008
3. The Luxury Institute, The Wealthy and Web 2.0, 2007
4. Forrester, Benchmark: Luxury Sector eBusiness Adoption, 2008
5. Forrester, Benchmark: Luxury Sector eBusiness Adoption, 2008
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