PREMIER PEOPLE
from Lloyds TSB Premier Banking
A study into the lifestyles, priorities and aspirations of Britain’s high earners.
ISSUE FOUR : BUYING AND SELLING SECOND HAND April 2004
Premier People1 is a newsletter from Lloyds TSB Premier Banking Service that seeks to offer an insight into the priorities, concerns and lifestyles of Britain’s high earners through research undertaken by Lloyds TSB Premier Banking.
This edition of Premier People explores the attitudes of the mass affluent towards buying and selling second hand goods and examines how frugal these high earners are with their unwanted possessions. Do they hoard, ditch or pass on items they no longer need? The report also explores what and where today’s rich are buying second hand and how far they are prepared to go in search of a good deal.
1. Britain’s high earners are keen on second hand shopping
Resourceful rummagers
Despite their wealth and often hectic lifestyles, many high earners are devoting their free time to scouring second hand shops, rummaging at car boot sales or burying their noses in the classifieds in pursuit of the perfect purchase.
Rather than simply heading for the high street to shop, a third (33 per cent) would find time to check out the classified ads, more than a quarter (26 per cent) would scour car boot sales while nearly a quarter (23 per cent) can be found in bric-a-brac shops.
Unsurprisingly, hunting for antiques and second hand books is clearly also a favourite past time for the rich with half (49 per cent) saying they would shop at antique shops and 40 per cent admitting to nosing around second hand bookshops.
Flea markets
Flea markets provide plenty of purchase potential for nearly one in five (18 per cent) of Britain’s high earners and one in ten (9 per cent) admit that they would rifle through second hand clothes shops when planning their next outfit.
- Buying second hand items
Non - materialistic
Despite their wealth, high earners are not ‘bling, bling’ followers of fashion but canny consumers who appreciate the value of second hand items. Rather than insisting of having the latest versions of everything, more than three-quarters (76 per cent) of high earners say that they would buy second hand cars. Nearly half (45 per cent) would buy second hand books and a fifth (19 per cent) would be happy even to purchase other people’s jewellery.
Cast offs are ‘en vogue’
Neither are high earners materialistic when it comes to dressing their home or even themselves. More than one in ten would be happy to buy (13 per cent) second hand furniture (non-antique) and almost one in ten (9 per cent) would even purchase other people’s electrical equipment. Cast offs are clearly ‘en vogue’ for some affluent shoppers with 7 per cent saying they bought second hand clothes.
Young high earners are the thriftiest
Surprisingly, the young high earners are the thriftiest, often shunning new items in favour of second hand alternatives. 84 per cent of the under 34s said they would buy a second hand car compared to just 71 per cent of those aged 55+. A quarter (26 per cent) of under 34s would buy second hand CDs and nearly a fifth (18 per cent) would purchase pre-owned electrical equipment compared to just 8 per cent and 6 per cent respectively of those aged 55 or above.
- ‘Throw away society’ is a myth for the affluent
Turning leftovers into lolly
Despite their wealth, a surprising number of canny high earners are prepared to devote their free time to turning unwanted belongings into hard cash. Thirteen per cent sell their cast-offs on internet sites such as ebay or Amazon™ and nearly one in ten (8 per cent) admit to placing ads in the classifieds in a bid to turn their leftovers into lolly. Six per cent even trade their wares at the traditional car boot sale.
Easy come, easy go?
Far from being a lavish embodiment of a ‘throwaway’ society, high earners are reluctant to waste items they no longer need. Forty two per cent donate their unwanted items to charity shops while over a third (38 per cent) of wealthy hoarders admit to being unable to part with their possessions at all.
Hand me downs
“Handing down” redundant items to their relations causes no embarrassment for today’s affluent. Whether out of generosity or thrift, nearly a quarter (23 per cent) admitted to passing on surplus belongings to their friends and family.
Ditching the junk
Despite the apparent frugality of many high earners, a fifth (21 per cent) still admit to taking their unwanted items to the tip and 22 per cent simply throw things out. Those under 34 are the most likely to bin their bits and pieces (27 per cent) compared to only 15 per cent of those aged 55+.
Summary
When it comes to shopping, high earners are evidently less materialistic than one might think. Despite their wealth and hectic lifestyles, they are just as likely to spend their weekends rummaging at car boot sales as maxing out their credit cards in designer stores in search of the perfect purchase. Resourceful and frugal consumers, high earners are certainly not wasteful when it comes to their own surplus possessions, either selling them, gifting them to a charity shop or handing them down to family or friends.
Lloyds TSB Premier Banking Service
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Customers can have access to a dedicated Premier relationship manager and a dedicated 24 hour Premier Banking support team they can call at their convenience. The Service has developed a range of products and services specifically with time poor customers in mind…whether they need help with financial planning, tax issues, will writing or simply with everyday banking queries, Lloyds TSB Premier Banking Service is there to help.
1Premier People profiles the results of research conducted through the TNS Interactive high net worth omnibus survey. 1,078 individuals were surveyed online.