Monday, August 21, 2006
Yuppies
Yuppies, short for 'Young Urban Professionals' are growing in numbers and are affluent. This article examines the characteristics of Asian yuppies and how marketers can segment the market.
In Thailand, Taiwan, South Korea and other rapidly-developing Asian countries, marketers have discovered a growing class of young professionals and entrepreneurs. In Singapore, Hong Kong, Taipei and Seoul, there are over a million people in their 20s or 30s who hold professional, managerial or technical jobs. Besides that, there are many self-employed entrepreneurs who fall into the same demographic group.
With the belief that a financially stable and prestigious career as their main objectives in life instilled in them, Asian yuppies work hard and enjoy high educational achievement. A substantial number of yuppies receive tertiary education overseas and are exposed to Western influences. Though not considered wealthy by Western standards, Asian yuppies' incomes are pricey as compared with those of other Asians and have been rising 15% to 20% annually. In Singapore, a 22-year-old fresh graduate with first class honors might earn approximately USD28, 000 a year; a 32-year-old lawyer in Seoul, approximately $31,000 a year; a Hong Kong sales executive, approximately $32,000. There are also a substantial number of yuppies who do not mind relocating.
Asian yuppies enjoy urban lives. Most of the yuppies live with their parents, an arrangement that boosts discretionary income. Asian yuppies crave big-name brands and in a recent survey by the Straits Times, Ralph Lauren is Singapore's most bought brand; Louis Vuitton remains Singapore's desired brand. Malaysia's national newspaper, The Star, reported that Malaysian women are now better educated, receive higher paycheck and place higher priority in their career. This resulted in many of them procrastinating about marriage and having fewer children.
Asian yuppies desire expensive automobiles and apartments, have expensive haircuts at salons, work out at exclusive gyms, have vacations at exotic places, hang out at Starbucks and have exclusive membership at clubs.Compounding these sins, at least in the eyes of the older generation, is the proclivity of many yuppies to pay for their desires with credit cards, instead of cash.
Being modern and traditional, Western and Asian, marketers are trying to figure out what makes these consumers tick. Local brands, such as CYC and Crocodile, know that they have to reflect a more up-market image in order to appeal to Asian yuppies. However, no matter how finely tuned the marketing pitch is, some products and services are not likely to appeal to Asian yuppies. Take NTUC's DXO for example. The club tried to revamp its image but because it is linked to NTUC, yuppies didn't quite take the bait.
Consumer life is of crucial importance to everyday life. To segment this market, companies need to understand yuppies' lifestyles and behaviors.