- Aug 19, 2014
By Allie Putterman
In the map shown, the Nielsen Designated Market Areas in dark green have households that are 1.26 times more likely than the average to have a net worth of $1 million or more. On average, 9.6 percent of households in these areas have this high net worth. Together, all DMAs in dark green comprise more than one-quarter of the high-net-worth households in the U.S. In contrast, areas in light green, or Quintile 5, are 20 percent less concentrated in these high-net-worth households and capture only 6 percent of them nationwide, even though these same areas make up more than 17 percent of the U.S. population.
At the top of the heap, the Washington, D.C., DMA is 53 percent more concentrated in households with a net worth of $1 million or more. Looking more specifically at the households by type and location, one can further identify behaviors and attitudes of these wealthy households by type and location, one can further identify behaviors and attitudes of these wealthy households to help understand local consumers—important in securing the correct tenants to serve these elite consumers. Such D.C. consumers are more likely than average to engage in the following behaviors:
• Automotive: If deciding today, they would buy/lease a new Lexus, Mercedes or Toyota Prius.
• Restaurants: In the past month, they have dined at Bertucci’s and Au Bon Pain, while in the past six months, they have dined at Ruth’s Chris Steak House.
• Retailers: In the past three months, they have shopped at Lord & Taylor, Neiman Marcus and Crate & Barrel.
• Sports & Leisure: These consumers are more likely than average to go sailing, while in the past year, they have bought golf clubs and have attended art galleries/shows.
• Psychographics/Attitudes: These consumers trust radio the most, followed by magazines; they will keep their landline phone even if cell service improves, and they follow a regular exercise routine.
These consumer insights can be extremely valuable to anyone planning their tenant mix or choosing the right location for a retail store. When looking at real estate in Washington, D.C., it may be important to include a sporting goods store that sells golf clubs and club attire or include a tenant that offers frequent exercise classes.
—Allie Putterman is an associate in Nielsen’s Segmentation Leadership Development Program, providing segmentation and local market solutions.