I previously lived in New York City for five years, but as a student deeply immersed in academics with an 11x7 schedule, I never had the time or experience to ponder and appreciate the city. Recently, almost ten years after graduating, my family came to visit, and I finally had the opportunity to revisit New York City as a tourist. This allowed me to reinterpret the city, including its residents, and I gained many new insights.
One of the most surprising observations was the high proportion of large SUVs on the streets compared to other cities. For example, GMC Yukon XLs, Lincoln Navigators, and Cadillac Escalades were everywhere. These vehicles even have a specific name called "Towncar." It's truly bizarre—given that NYC's lanes are narrow and parking is difficult, shouldn't most people be driving smaller cars, much like in Europe? So why are there predominantly large vehicles on the streets?
Upon further observation, I noticed a common characteristic among these vehicles: their license plates start with a "T" and end with a "C." After some research, I discovered that these are regulated by the Taxi and Limousine Commission (TLC). In other words, these are commercial operation vehicles, not personal cars driven by locals. It makes sense—New Yorkers primarily use the subway, saving time and hassle.
People who use these cars typically have additional needs. For instance, during our trip, we hired a vehicle to go directly from JFK to our hotel. While it was convenient for a student to navigate the subway alone, it was too much of a hassle for a family with luggage to drag suitcases up and down elevators. Hiring a car didn't save time, but it was much more mentally convenient. Driving and parking in New York City is difficult, but since the driver handles the parking hassles, I didn't have to worry about it.
This phenomenon is quite interesting upon closer thought. Hiring a car isn't cheap—while a subway ride costs about $2.90, hiring a car can jump to $175. Carrying luggage a few steps to the hotel directly saves around $160. Isn't that a good deal? After all, the value provided by car services is quite unique. They don't offer any advantages over the subway in terms of getting from point A to point B, but they are the only option if you desire convenience, privacy, or a status symbol. The abundance of large SUVs on New York streets (by my estimate, about half of them) indicates a significant demand for these higher-end needs beyond mere transportation. This constitutes a massive head market, which is a very atypical aspect of New York that I discovered during this visit.
Digging deeper, this head market isn't limited to transportation; it also manifests in the hotel and restaurant sectors. Not to mention top-tier brands like Aman, within the Marriott group itself, stunning suites and even guest rooms priced in the tens of thousands of dollars per night are not uncommon. As for restaurants, whether Michelin-starred establishments or longstanding places that require formal attire, even American-Chinese restaurants like Tao typically see individual dining expenses ranging from several hundred to over a thousand dollars per person.
What supports all this market? I believe it primarily stems from three factors: high population density, a high proportion of wealthy individuals, and a tourist mindset.
Upon entering NYC, the most immediate impression is the sheer number of people—people mountain, people sea—much like in China. People and vehicles are uncompromising with each other, and the blaring horns are deafening. From another perspective, this instantly made me understand why flagship stores are all located in New York. Fifth Avenue sees daily foot traffic averaging between 500k to 1M people. Using an internet analogy, for each store, this equates to about 1 million impressions daily. Even with a 1% click-through rate (CTR), that results in thousands to tens of thousands of "click-throughs" each day. These numbers are astonishing even in the realm of the internet, not to mention in physical stores with higher conversion rates. From this angle, it becomes clear why New York is indeed a commercial powerhouse with endless opportunities.
The proportion of wealthy individuals in New York is also remarkably high. According to statistics, on average, one in every 24 residents in New York City is a millionaire (in USD). Coupled with the high population density, New York City has a total of 345,000 millionaires, and this number continues to grow in recent years. The total wealth of New York residents even surpasses that of all G20 countries combined, excluding China and the United States.
These individuals have consumption habits vastly different from the average person. For example, while ordinary people might never consider hiring a car or even a helicopter, these wealthy individuals, although they might also use the subway for regular commutes, will contemplate hiring cars when the need arises. This is a significant factor contributing to the emergence of a massive head market.
The thirds factor, the tourist mindset primarily refers to an experiential attitude. As the saying goes, "A poor family makes rich roads," implying that people's mindsets change while traveling, making them more open to options they wouldn't usually consider. For instance, one may spend three to five hundred USD comfortably without much hesitation for regular consumption levels. However, when traveling, people are more willing to bite the bullet and pay for a suite costing a thousand USD per night.
These three factors create such a high consumption tier in New York, supporting the numerous flagship stores on Fifth Avenue and the large SUVs on the streets. New York's market is indeed distinct from other places, with a unique yet expansive customer base. This explains why products that are only popular in New York make sense, such as Blade—a helicopter commute between JFK and Downtown—or VIP fast-track tickets similar to Disney's. These services offer time-saving and status-enhancing attributes, which only affluent individuals prioritize and can afford.
It feels similar to rereading "Three Kingdoms" or "Journey to the West" as an adult compared to as a child, noticing different aspects. Revisiting New York after a decade, I saw many different facets. On one hand, because I had graduated and shifted from a student perspective to that of a consumer, gaining certain insights into vehicle models and categories. On the other hand, due to teaching AI classes, I registered a company. With the help and guidance of my business partner Kedaibiao, I received substantial education in business and market. Transitioning from a student to a business owner is a significant role change, providing many different perspectives. I strongly agree with the viewpoint of another influencer who inspired me, Chen Ran: becoming a business owner is a transformation. Only by truly thinking about and trying to monetize your skills can you elevate your cognition to a new level. If any readers have similar ideas, they might as well start by registering a company. After registration, you'll naturally be forced to handle many aspects such as taxes, licensing, and marketing. Even if you don't make money initially, the education you receive is immensely valuable.
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