#Japan #Tokyo #YOMIKO #Reiwa Rich #Affluent Consumers

Insights into Japan's Young Affluent Consumers

YOMIKO, a prominent advertising agency based in Tokyo, has released its latest report on young affluent consumers, dubbed the 'Reiwa Rich'. This demographic encompasses individuals aged 20 to 40, categorized into three groups: Entrepreneurial Rich, Inherited Rich, and Double Engine. Since 2021, YOMIKO has conducted systematic research to explore their spending habits, financial assets, disposable income, investment strategies, and preferences regarding education and residence.

Analysis Highlights

The findings of this third report present several noteworthy trends:
1. Despite rising inflation, expenditures among the Reiwa Rich are on the rise.
2. Their financial assets and disposable income are both increasing.
3. A significant contributor to these trends is the presence of secondary income streams.
4. The source of these supplemental incomes varies significantly across different segments of the affluent population.

Increasing Spending Despite Inflation

Recent years have witnessed an upsurge in prices, yet the spending patterns of the Reiwa Rich show a general increase. Notably, expenditures on domestic and international travel, as well as subscriptions, are accelerating at a remarkable pace.

Rising Financial Assets and Disposable Income

The financial profile of the Reiwa Rich reveals an upward trend; approximately 30% hold over 100 million yen in financial assets. The percentage of respondents who can spend over 1 million yen without consulting family increased by 5.5 points, while the average monthly allowance for spending showed a notable increase. In fact, the proportion of monthly allowances exceeding 500,000 yen increased by 5 points, with those surpassing 1 million yen doubling since the last survey, indicating a growing disposable income.

Secondary Income Sources Driving Wealth

Around half of the Reiwa Rich report having ongoing secondary income, with Entrepreneurial Rich showing a particularly high percentage—about 60%—compared to other groups. Among these earners, approximately 20% earn over 10 million yen annually from their secondary activities, further enhancing their financial stability.

Diverse Sources of Supplementary Income

The sources of secondary income vary considerably among the wealthy. While dividends and investment trusts are common, Entrepreneurial Rich often derive their income from platforms like YouTube. Inherited Riches typically benefit from dividends and investment trusts they may have inherited, while the Double Engine group predominantly gains from rental income from real estate, showcasing the unique financial pathways these affluent individuals pursue.

About this Research

This study has also led to the development of various services tailored to interested parties:

• - Sale of survey data
• - Advertising solutions targeting affluent consumers
• - Exclusive opportunities for Reiwa Rich to experience products and services directly

For inquiries regarding the research results and services, please contact the Industry Consulting Center at YOMIKO: Sasaki, Otsuka, Sada, Motoyama at the email: reiwa-rich@yomiko.co.jp.

Research Overview

• - Age Group: 25 to 69 years
• - Area: Greater Tokyo Area (Tokyo, Kanagawa, Chiba, Saitama)
• - Sample Size: 700 (200 Entrepreneurial Rich / 200 Inherited Rich / 200 Double Engine / 100 Old Rich)
• - Survey Period: November 18 – 25, 2024
• - Method: Online survey

Survey Contents:

• - Basic demographics (family structure, profession, household income, financial assets, disposable income, residence, etc.)
• - Education considerations for children
• - Credit card usage
• - Secondary income and investment
• - Consumer attitudes across various industries such as real estate, automobiles, food, finance, education, and fashion.

This survey not only reveals the shifting dynamics of wealth but also highlights the evolving consumer landscape among Japan's affluent youth.