RINKER ON COLLECTIBLES — Column #1530

Copyright © Harry Rinker, LLC 2016

Who Are the HENRYs and Why Are They Critical to the Future of Collecting?

The search for general terms that differentiate generations, economic, and diversity groupings is continuous.  Although not a fan of generalities, previous “Rinker on Collectibles’ columns have explored the differences and linkages between the GI, early Baby Boomer, late Baby Boomer, X, Y, Millennials, and Z (or iGen) generations.  Yuppie (young urban professionals), Dink (double income, no kids), and Nimby (not in my backyard) have appeared frequently these columns

I pride myself on keeping abreast of “in” buzzwords, especially if I see them as a tool in analyzing trends in the antiques and collectibles marketplace.  In late 2015, I was introduced to HENRY, an economic/social acronym that arrived on the scene in 2003.  I do not know how I missed it.

The acronym stands for high earning, not rich yet.  Like many generalized terms, the specific definition varies.  When “Fortune” magazine first introduced the term, it categorized individuals with annual incomes between $100,000.00 and $250,000.00.  Later writers increased the amount to households earning between $250,000.00 and $500,000.00.

Forgetting the amount, the common thread is that these individuals feel squeezed.  After deducting housing and family, schooling, taxes and other costs, they do not have the money they deemed necessary to maintain a lifestyle to which they think their income entitles them.  Although Henrys can afford mid-range luxury brands, they often choose not to buy them.

In the 2008 Presidential election, the Democratic Party classified any household with earnings above $250,000.00 as among “the wealthiest Americans” and “rich.”  Many HENRYs saw this as a slap in the face.  The American Dream involved a good education, working hard, and reaching an income level that allowed a lifestyle better than their parents. At full achievement, individuals had unlimited purchasing power.

Henrys are not generational.  As the 21st century dawned, they were found among the members of Generation X and Generation Y.  As the century progressed, Henrys evolved into affluent millennials

[Author’s Aside:  Now that economists, sociologists, and others have started to use Generation Z (also known as the iGeneration), what is next?  I suggest the eGeneration (Entitled Generation), young adults who feel entitled to the lifestyle of their parents without having to work for it.]

What does lifestyle mean to a Henry?  According to an article on www.thebillfold.com, Henry’s save approximately 8.5 % of their disposable income.  [https://thebillfold.com/are-you-a-henry-1f7c992b10fc#.zelm2w5xy].  This money does not enter the economic marketplace.  Henrys manage their money more than previous generations.  They fear their future is not as bright as their parents.

While Henrys are brand conscious, feeling pressured to buy brands that are advertised as indications of their economic success, they hesitate to spend the money.  They do not feel rich enough.  Brands no longer make a strong enough statement to be must-own items.  Some luxury companies have failed to meet analysis growth projections in several recent quarters.

Henrys are likely to purchase a home whose cost exceeds the recommended safe standard income to mortgage ratio.  They are members of the digital age.  Affording the latest electronic device is more important than buying clothes and accessories.  They eat out.  A hedonistic urge rests deep within the Henrys’ consciousness.

Henrys like authenticity, craftsmanship, and quality.  Mass-production at any level, from Walmart to the highest brand names, is suspect.  Henrys want to identify with the products they buy.  They want to know the maker, whether a farmer at a local market or a furniture craftsman.  Henrys are minimalists, not conspicuous consumers.  They want value when buying.

Henrys are leisure focused.  They love to travel.  An adventure (life experience) is high on their must-have/must-do list.  In this instance, experience has little relationship to value.  A Henry’s “high” comes from going somewhere unusual as an individual, couple, or small group.  Experiences are personal.

How do Henrys impact the antiques and collectibles trade?  Henrys see relatively little value in owning antiques and collectibles.  There is no social advantage.  Their peers could care less.  Family value is passé.  New is the order of the day.

Henrys are part of the contemporary trendy generations.  Change is mandatory.  Decorating and fashion magazines consulted by the Henrys no longer feature antiques and collectibles.  A reproduction is better than an identical older object because there is no fear of breakage or other damage from use.

The trade cannot reinvent antiques and collectibles.  Objects are what they are.  The trade needs to reinvent how antiques and collectibles are perceived.  The traditional emphasis on collecting and investment needs to be abandoned.  In the 2010s, emphasis must focus on conversation and reuse value.  In addition, the trade must accept the concept that it is okay to use and discard antiques or collectibles.  The life of some objects is measurable.

Those individuals who hire interior decorators to help craft their home’s environment have no expectations that the purchase price of objects their decorator recommends will be recovered in resale.  When it is time to redecorate, the former furnishings are sent to auction, donated to charity, or trashed.  They have outlived their usefulness.  Thinking of antiques and collectibles in this fashion is incomprehensible to many within the trade.  Change is never easy.

If the antiques and collectibles trade wishes to capture a portion of the financial resources of the Henrys, it must re-establish the unholy alliance between the antiques and collectibles and interior decorating communities.  A deliberate effort must be made to convince leading voices in the interior decorating community that antiques and collectibles can support minimalist and other modern living styles.  The mavens who edit lifestyle magazines need to be courted.  Who in the antiques and collectibles trade is willing to undertake such a daunting task?  One individual is not enough.  It must be a group effort.

Authenticity, craftsmanship, and quality are found in abundance within the antiques and collectibles trade.  While evident to auctioneers, dealers, and collectors, it is not readily apparent to the Henrys.  What the trade takes for granted, needs to be taught and touted.  Sales need to be story focused.  Sellers need to explain the stories behind pieces so Henrys develop an identity with them and show how pieces enhance contemporary decorative environments.  An aesthetic sales pitch that touts the evidence of one’s good taste and appreciation of connoisseurship is the wrong approach.  A crasser approach – see how well it integrates with your lifestyle – works.

Although Henrys may shun buying some mid-luxury items, they are not cheap buyers.  Attempts to determine an “average” mid-luxury purchase price was difficult.  Value was item dependent--$20.00 versus a $9.00 glass of wine, a $150.00 wrinkle cream versus a $20.00 bottle of Neutrogena.  Assume a value range between $250.00 and $500.00, a conservative range considering the cost of a new cellphone and tablet technology.

As a result of the economic decline of the 2008-2009 Great Recession, the antiques and collectibles trade has a wide range of high-quality, well-crafted, design focused, and brand name objects that fall within this price range.  1960s Modernist glass, even though it is mass produced, is an example.  Instead of 1stdibs.com, an antiques sales venue that sells pieces for double to quadruple their fair market value based on prestige elitism, the trade needs a series of storefronts and websites selling reasonably priced antiques and collectibles that complement modern decorating trends.

A question remains.  How does the trade take advantage of the Henrys’ desire for travel and adventure?  A visit to an antiques shop at journey’s end is not the answer, albeit I wish it were.  Antiquing, once a great adventure for my generation, has little appeal to the Henrys.

Harry L. Rinker welcomes questions from readers about collectibles, those mass-produced items from the twentieth and twenty-first centuries.  Selected letters will be answered in this column.  Harry cannot provide personal answers.  Photos and other material submitted cannot be returned.  Send your questions to: Rinker on Collectibles, 5955 Mill Point Court SE, Kentwood, MI  49512.  You also can e-mail your questions to harrylrinker@aol.com. Only e-mails containing a full name and mailing address will be considered.

You can listen and participate in WHATCHA GOT?, Harry’s antiques and collectibles radio call-in show, on Sunday mornings between 8:00 AM and 10:00 AM Eastern Time.  If you cannot find it on a station in your area, WHATCHA GOT? streams live on the Internet at www.gcnlive.com.