10 Takeaways Luxury Firms should learn from the 2015 Wealth Report

the-wealth-report-2015-presentation-1-638

1) The Rich Keep Getting Richer

Over the same period, according to wealth advisors, 82% of UHNWI’s surveyed had increased their wealth during 2014, with only 3% reporting a fall.

80% of survey respondents expect their clients’ wealth to grow further in 2015.

2) Rich people added $700bn To Their Wealth in 2014

The global population of ultra-high-net-worth individuals grew by almost 5,200 last year, according to WealthInsight. This latest increase means 65,335 people have joined the ranks of the ultra-wealthy over the past decade – a rise of 61%.

In total, there are now 172,850 individuals in this cohort who hold wealth totalling $20.8tn, an increase of $700bn during 2014. Nearly 1,180 people became centa-millionaires in 2014, taking the world’s total population of those worth over $100m to 38,280.

3) America is the Land of Opportunity

44,922 UHNW individuals live in North America alone, compared with 60,565 in the whole of Europe.

New York City (#3), Miami (#6), San Francisco (#19), Los Angeles (#22), Washington DC (#34) and Boston (#35).

“ Six cities in the U.S. ranked in the Top 40 most important cities to UHNWI’s ”

4) London Up, Europe Down

Focusing purely on the population of wealthy residents, the report confirms that London remains the single biggest centre for global UHNWIs, followed by Tokyo, Singapore and New York.

With the exception of London, European cities will see a relative decline in their rankings based on the size of their UHNWI populations over the next decade.

5) Don’t Be Seduced by Zambia

The UHNW population of Monaco increased by the highest rate (10%) in 2014, followed by Zambia, Mongolia, Namibia and Kazakhstan. Which is all well and good until you consider that just 16 UHNW individuals currently live in Zambia, 48 in Mongolia, 17 in Namibia and 190 in Kazakhstan.

It’s easy to report higher percentage increases in population when you are starting from a small base.

6) Don’ Be Seduced by Nationality

Consider all the activity of luxury brands opening brick-and-mortar stores in markets such as China, Russia and Brazil, thought to have large – increasing – numbers of UHNWI’s.

Imagine their disappointment when they learn that one-third of Russians are looking to make a permanent move abroad, as 60% intend to send their children to be educated overseas.

Generally, UHNWIs living in Australasia seem happiest with their lifestyles only 4% want to change their country of residence or domicile, and very few send their children overseas to be educated.

“ One-third of Russians are looking to make a permanent move abroad ”

7) Luxury Spending by UHNW Will Grow

The general outlook for luxury spending continues to be positive. Almost a third of respondents to The Wealth Report’s Attitudes Survey expect their wealthy clients to spend more on luxury goods in 2015, compared with just 8% who expect it to decline.

8) The Next Generation Spends More on Luxury Goods

Time for some good news for luxury brands, the younger generation want to spend lots of money on luxury goods and post it all on Instagram.

“ 66% of younger UHNW’s spend more on luxury goods than their parents ”

9) Go Where the Wealthy Are Going

Don’t go where the wealthy came from. According to NetJets, Moscow to Nice (Cote d’Azur) was the most travelled private jet route of 2013. Followed by Miami to NYC, NYC to Los Angeles, NYC to West Palm Beach, and London to New York.

Granted, this data must be skewed by the sheer number of Private Jet users in the United States and the fact that NetJets is strongest in North America. But above all it confirms just how prosperous this area of the world is, and that it’s UHNW residents are not holding back on spending their wealth.

10) This Is a Man’s World

At least on a private jet it is. According to NetJets, over 80% of private jet passengers are male. The typical age for flyers is 40-55.

“ Over 80% of private jet passengers are male ”


http://luxurysociety.com/articles/2015/03/what-luxury-brands-should-learn-from-the-2015-wealth-report;

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s