Thailand’s Henry’s – Henry says it all
The World Bank has upgraded Thailand’s income categorization from a lower-middle income economy to an
upper-middle income economy in 2011, recognizing that Thailand is making economical progress. Although every
country has different income index, the Bank of Thailand clarifies that High income earners are benchmarked at
least 50,000THB steady monthly income.
High earners, not rich yet (HENRYs) are individuals who currently have disposable income and a strong chance of
increasing their income in the future. The term HENRYs is not new and has been used for over a decade in
international marketing, describing a younger demographic for the purposes of marketing products and services to
them. If we look at Thailand professional such as; lawyers, doctors, tech entrepreneurs, real estate brokers etc
they all have the characteristics to be HENRYs due to the income range of their professions. Their future wealth is
based on continuous work rather than income generating assets meaning they won't be as rich if they stop
working. This in particular is an interesting fact for Real Estate Developers.
Bangkok HENRYs in the Luxury real estate market
Everybody aims of owning assets that will generate future income. Real Estate developers see lots of potential in
this transitional phase where a future rich person is still adapting to a rapid increase in income. The transition is
seen as an opportunity for a luxury developer to tailor into HENRYs lifestyle and begin creating loyalty concepts. As
there are more HENRYs in Thailand than HNWI, there is a larger market if the product and services are matching
their price absorption rate. HENRYs are aspiration buyers, meaning that they are willing to purchase into a lifestyle
they one day hope to be able to fully afford. Thailand has been targeted by luxury goods and luxury residences due
to an increased GDP, FDI and let’s not forget the talented millennials contributing to Thailand 4.0. The Thai society
had for years unwritten hierarchic classes which are now 2017 becoming less , and overshadowed by the true
economic contributors.
HENRYs have their own vision on the luxury real estate market and the way they use the new media and
technology has a major impact over the evolution of the real estate market. They are very much experience driven,
like to seek out adventure and gain additional knowledge. Luxury developers are analyzing their demands and
behavior to accommodate them with not only an aesthetic appealing structure but envisioning next level
amenities matching their lifestyle.
Why are HENRYs important?
HENRYs have more disposable income which allows them to travel and enjoy their local lifestyle. They’re also likely
to accumulate more wealth in the future due to developing careers and the emerging market environment of Asia
Pacific. The HENRY market is so vast partly because of how broad it is; different HENRYs will be interested in
different things. Some might look for investment opportunities, and others may want more end user experience.
It’s important to avoid generalizing.
For established markets, HENRYs hold the key to potential growth. For instance there are “ten times as many
HENRYs as HNWI entering this market each year. Developers and brands need to build a relationship with HENRYs
now, because these customers are on their way to becoming even more affluent. HENRYs are a gateway
demographic through which most of those who reach HNWI status move through.
Author
Marciano Birjmohun
Associate Director Residential Department
KnightFrank Chartered (thailand) Co., Ltd.
