What are High Earners, Not Rich Yet (HENRYs)?

Definition and Examples of HENRYs

The term HENRY stands for “High Earners, Not Rich Yet,” and typically refers to young individuals with an annual income ranging from $100,000 to $250,000. HENRYs do not consider themselves wealthy and are known for their reputation of seeking good deals. Retailers of luxury brands tend to focus on this demographic. HENRYs tend to spend first and postpone saving or investing later in life.

What HENRYs Mean for Retailers

HENRYs can be a treasure trove for retailers, especially those selling luxury brands. It makes sense for their advertising to often target this group since HENRYs greatly outnumber the ultra-wealthy, as well as middle- and lower-class consumers who cannot afford their products. The conference committee suggests that about 40% of total consumer spending can be attributed to HENRY purchases. Women control up to 80% of spending in HENRY households. These women are usually in their prime spending years, providing many opportunities for certain retailers.

What HENRYs Mean for Investment Firms

Investment firms represent the other side of luxury retailers when it comes to reaping HENRY profits. This demographic is not particularly interested in making more money by investing what they have, focusing instead on saving what they currently earn. That does not mean some firms have not found a way to capitalize on this demographic. Some have gone so far as to make HENRYs their core business focus. For example, Drucker Wealth Management offers a line of services under the name “H.E.N.R.Y. Syndrome.”

Source: https://www.thebalancemoney.com/what-are-high-earners-not-rich-yet-henrys-5196294