Toronto, ON – When pop culture portrays millionaires, it is typically with images of luxury cars, high-end stores, designer boutiques in exotic locations, and limitless spending with little sensitivity to cost. Yet, a new survey of Canadian millionaires conducted by Ipsos Reid reveals that most of them shop at Walmart, placing it number-one among major retailers in Canada among millionaires.
The survey, titled the Affluent Canadians Study, was conducted among 175 households with $1 million or more in investable assets (excluding their home or personal possessions). The results show that three quarters (72%) of the millionaires interviewed have shopped at Walmart in the past 12 months, placing it ahead of other major retailers in Canada such as, The Bay (70%) and Sears (54%).
While Canada’s millionaires likely have a lot more money to spend than most other Canadians, price and value still matter to them – a lot. While ‘high quality products’ is an important (39% very/55% somewhat) factor for 94% in determining where they choose to shop, the vast majority (88%) of millionaires studied say that ‘price/budget’ is ‘important’ ( 43% very/45% somewhat). Other important factors are: ‘availability of staff’ (88%, 33% very/55% somewhat), ‘having a good range of different brands’ (87%, 25% very/62% somewhat), ‘store layout/organization’ (70%, 15% very/55% somewhat), ‘proactive customer service’ (65%, 21% very/44% somewhat), and ‘unique product selection’ (59%, 10% very/49% somewhat). Perhaps contrary to what many would think, ‘availability of the latest trends/hottest labels’ (21%, 3% very/18% somewhat) and ‘designer labels’ (18%, 5% very/14% somewhat) fell to the bottom of this list.
Canada’s millionaires – many of whom are Baby Boomers – are looking for value. When asked about the top reasons for choosing the brands that they do, ‘good value for price’ is the top-rated factor. In fact, ‘value’ appears at the top of the list across a variety of product categories which include clothing and accessories, skin care and cosmetic brands, wine, champagne and beer, vehicles and computers, laptops and tablets. Marketers would do well to heed this message if they’re looking to tap into the disposable income of Canada’s wealthiest citizens.
In other categories of spending, Canada’s millionaires are much more driven by experiences and are willing to pay more to receive that experience. More than seven-in-ten (72%) choose their travel based on the ‘unique experience it will provide’. Likewise, 69% would rather have a ‘special experience than buy something’, and 47% are willing to pay more for personalized/customized service. For marketers, that means creating unique and memorable experiences – something special that is likely to foster greater loyalty.
These are some of the findings of an Ipsos Reid poll conducted between December 6th and 14th, 2012. For this survey, a sample of 175 Canadian adults who have $1 million or more in investable assets (excluding their home or personal possessions) in the household was surveyed online. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 8.4 percentage points had all Canadians adults in this sample universe been surveyed. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Associate Vice President
Ipsos Reid Public Affairs
About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit www.ipsos.ca.
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world’s third largest market research company.
With offices in 85 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,789 billion (2.300 billion USD) in 2012.