[Case Study] From “Trend Seekers” to “Frugals”: Six types of the Wealthy in Japan
by Cluster Analysis
- Case Study
- Data mining
What comes into your mind when you hear the word "wealthy"? You may think of wealthy people as those who enjoy hobbies, traveling, or captivated in investments heavily. Although we sum up them into the term "wealthy", there should be various characteristics among them.
Nikkei Research analyzed the differences among the wealthy; defined as people who had financial assets of 100 million yen or more, from the data of a survey conducted in Japan last year (November 2020).
We used the data of the purchasing behavior and values (43 questions, answered on a scale of five from "applicable" to "not applicable") of 420 respondents who answered that their financial assets were 100 million yen and above. By cluster analysis, they were classified into six clusters.
Then, for each cluster, we used Nikkei Research's proprietary data mining tool, “KeyExplorer”, to discover each unique characteristic by analyzing the answers of all 77 questions in the survey, including demographics, working styles, and how they spend their day off. Table 1 shows the result, interpreted and ordered from those that seem to fit the general figure of the wealthy.
Table 1. The Six Clusters of the Wealthy
| Characteristic | Distribution(%) | |
|---|---|---|
| A | Trend seekers. Do not hesitate to spend on hobbies and cuisines. | 7％ |
| B | Concerned about environmental issues. Prefer consuming that supports solving social issues. | 24％ |
| C | Likes traveling and going out. Dislike extravagance. | 19％ |
| D | Proud of their business. Be with pets on holidays. | 13％ |
| E | Savings first. Being vigilant for disasters and other risks. | 23％ |
| F | Likes to be at home. Being frugal shopping cheaply and wisely. | 13％ |
Let's look at each cluster one by one through the lists of characteristics (Table 2).
Table 2. Characteristics of each Wealth Cluster
Remember, even though it may appear that certain groups had a strong desire in saving money, we are comparing the differences between wealthy people. Their income and expenditures are both relatively high (Table 3).
Table 3. Household Income, Financial Assets, and Monthly Expendable Money of each cluster
| Share | Share within the Wealthy | Average Annual Household Income (10K Yen) | Average Financial Assets (10K Yen) | Average Monthly Amount of Expendable Money (Yen) | ||
|---|---|---|---|---|---|---|
| The Wealthy | 3% | 100% | 1,186 | 14,988 | 190,560 | |
| Clusters | ||||||
| A | Trend seekers. Do not hesitate to spend on hobbies and cuisines. | 7% | 1,489 | 15,726 | 219,839 | |
| B | Concerned of environmental issues. Philanthropists devoted to solving social issues. | 24% | 1,321 | 14,608 | 188,922 | |
| C | Likes traveling and going out. Dislike extravagance. | 19% | 999 | 15,093 | 201,296 | |
| D | Proud of their business. Be with pets on holidays. | 13% | 1,395 | 15,142 | 229,245 | |
| E | Savings first. Being vigilant for disasters and other risks. | 23% | 1,109 | 15,153 | 164,184 | |
| F | Likes to be at home. Being frugal shopping cheaply and wisely. | 13% | 989 | 14,682 | 171,000 | |
| Non-Wealthy | 97% | 623 | 1,818 | 43,820 | ||
How was our analysis?
There were different types of wealthy people, each with different values. By referring to these six classifications, I hope it helps you when you need to understand your customers and think about who in the wealthy segment demands your products and services.
As we have shown in this case study, we have our unique method to analyze for understanding the characteristics of clusters more clearly. If you have done a cluster analysis but are experiencing difficulties in interpreting it, please contact us.
-
81-3-5296-5129(Available on weekdays at 10 a.m. to 6 p.m. JST)
- Inquiry