The economic downturn is prompting Canada’s most wealthy individuals to re-evaluate their lifestyles and attitudes, a recent study by American Express reveals.

Excess and gratuitous consumption are out, according to the study, and instead, a more introverted and new ‘individualist’ mindset has begun to prevail.

“Financial caution in the current economy is definitely driving a more restrained and pragmatic attitude. But our research shows that the attitude changes among the wealthy are more deep rooted and fundamental,” said Trevor Van Nest, vice-president of consumer card marketing at American Express Canada.

“The affluent are still willing to spend on things that are meaningful to them and will somehow make their lives better. It’s about enriching their lives, not simply being rich.”

The new individualist mentality has wealthy consumers acting more selective and discerning, and less impulsive, and consequently harder to serve from a business perspective.

For such consumers, the notion of ‘mass luxury’ is a contradiction. They are interested in products, services and experiences that are more personalized and unique. In addition, they are interested in relationships rather than transactions. Acquiring knowledge and a greater depth of appreciation for the luxuries their wealth can afford them is more meaningful than simply acquiring possessions.

“For many affluent Canadians, luxury is equated to ease and balance in life. This is even more evident in the current economic climate, with consumers evaluating each purchase to ensure that it provides worth and contributes to their overall lifestyle,” said Van Nest.

In the marketplace, this desire for differentiation means that value and service are gaining much more importance. The winners in the affluent marketplace will be those companies that fully appreciate what it takes to connect with these very important customers, according to American Express.

“It’s a mistake to believe that the high end customer is not concerned with price. They want the real thing when it comes to quality, personal attention and value for money. They understand the value of their dollar perhaps more than most,” said Van Nest.

IE