Aging Affluent Market Sparks Axa's Strategy.The burgeoning size and spending power The power of legislatures to tax and spend. Spending power is conferred to state and federal legislatures through their constitution. Judicial Review of legislative spending varies from state to state, but the law of federal spending informs courts in all states. of the global mass affluent Mass affluent and emerging affluent are marketing terms used to refer to the growing high end of the mass market. It is most commonly used by the financial services industry to refer to individuals with US$100,000 to US$1,000,000 of liquid financial assets,[1] market are driving the strategy of Axa Group, the French financial-services giant, said its executive vice president. In Europe, 24 million customers have 6 trillion euro ($5 trillion) of investable assets. That picture is expected to enlarge to 42 million customers and a total market of 11 trillion euro by 2005, said Stan Tulin, who is also vice chairman and chief financial officer of Axa Financial Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Add to that the U.S. prospects, with 11% of all households having more than $75,000 of investable assets, and the Asian potential, with 1.7 million people with more than $1 million in financial assets Financial assets Claims on real assets. in 1999, and the significance of this global market is apparent, Tulin said. "In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with the aging of the population, the number of people turning 50 is incredible--and that's being matched in France, Germany and the U.K.," he said. "More and more, there's a need of people to be served by financial advisers." As a result, big changes are tinder way, Tulin noted. "We are starting to see open architecture across Europe, with banks opening to third-party products," he said. Also, there is strong development of equity-linked products throughout continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. as well as the introduction of funds-of-funds and multimanager products, Tulin said. In general, he thinks that banks have missed the opportunity to tap this market by continuing to focus on deposits and loans, failing to develop a sales culture, fearing disintermediation--or the bypassing of the middleman--and feeling that "they owned the customer, "Tulin said. Axa, on the other hand, is implementing what it calls a "customer-centric, open architecture model" across its global markets. This will entail building lifetime relationships with customers based on trusted financial advice, as well as the sale of Axa products through others' distribution systems; the sourcing of nonmanufactured products to round out Axa's offerings; and sales of nonproprietary products through Axa's distribution system where necessary, Tulin said. This strategy is already implemented in the United States, and was launched in France and Belgium in 2000. It is being implemented this year in Germany, the United Kingdom, Australia and Spain. Axa's attempts to build "longer, deeper relationships" through financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against are already paying off, Tulin said. "We're finding that the new financial-planning customer is buying more products with us in six months than the old equity-life customer would have bought in a career or lifetime," Tulin said. "Axa's objective is to get to three to five products per customer." Axa Financial A.M. Best #: 58039 Rating: U.S. subsidiaries rated A-, A, A+ Headquarters: New York Lines of Business: Financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , asset management |
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