HNWIs and Ultra-HNWIs spend a significant portion of their wealth on Other Luxury
Other Luxury
Luxury makers also reported strong growth in 2007. Richemont, the second largest after the firm LVMH said its sales rose 14% during the last three months of 2007 to 1.7 billion euros. Wealthy consumers in the Middle East, Asia Pacific and North America showed the highest level of consumer spending for luxury goods (clothing, designer clothes and accessories, etc..)
Globally, HNWIs and Ultra-HNWIs allocated 10.2% to expenditure on health and welfare, which included visits to high-end spas, investments in fitness facilities, as well as scans of the entire body. At the regional level, HNWIs in the Middle East, Asia Pacific and North America most affected in this particular category of passion investments.
Investments sports, clubs, wine collections and other personal interests rounding other types of investments of passion. Wine distributors in Europe and the United States reported that sales of wines Midrange slowed during the second half of 2007 and early 2008, while those of "good value" and expensive-wines increased in part because the strengthening of the interest of buyers from emerging markets of China and Russia to invest their new wealth in the wine collections.
While overall investment passionate interests were weighted more heavily toward tangible, such as art collections, yachts, jets and other regional differences can be discerned. Asian HNWIs allocated more "intangible categories, as the experience of luxury and travel, health and wellness, and luxury consumables. Luxury spending in the Middle East and North America have global HNWIs exceeded averages.155 comparison with Ultra-HNWIs, who favored more tangible investments such as art collections, HNWIs, in general, were more likely to spend on "intangibles".
Looking Ahead
The global art market and the segments of the luxury industry tend to be "latecomers to economic downturns." Consequently, some industry analysts have expressed fears that these sectors in May still be affected by the turbulence in financial replica rolex markets in late 2007. However, historically, investing in fine art, private planes, luxury cars and other high-value collectibles have been more immune to economic slowdown, their ultra-HNW buyers tend to be less affected by these trends. "Affordable (and aspirational) luxury goods, which are more accessible to HNWIs and people less fortunate, may suffer more impact if the drop is sustainable.
Despite these concerns, the analysis suggests that new wealth and growing consumer demand in the Asia-Pacific, Eastern Europe and the Middle East will continue to outweigh the pressures of economic stagnation in Western markets.
Luxury makers also reported strong growth in 2007. Richemont, the second largest after the firm LVMH said its sales rose 14% during the last three months of 2007 to 1.7 billion euros. Wealthy consumers in the Middle East, Asia Pacific and North America showed the highest level of consumer spending for luxury goods (clothing, designer clothes and accessories, etc..)
Globally, HNWIs and Ultra-HNWIs allocated 10.2% to expenditure on health and welfare, which included visits to high-end spas, investments in fitness facilities, as well as scans of the entire body. At the regional level, HNWIs in the Middle East, Asia Pacific and North America most affected in this particular category of passion investments.
Investments sports, clubs, wine collections and other personal interests rounding other types of investments of passion. Wine distributors in Europe and the United States reported that sales of wines Midrange slowed during the second half of 2007 and early 2008, while those of "good value" and expensive-wines increased in part because the strengthening of the interest of buyers from emerging markets of China and Russia to invest their new wealth in the wine collections.
While overall investment passionate interests were weighted more heavily toward tangible, such as art collections, yachts, jets and other regional differences can be discerned. Asian HNWIs allocated more "intangible categories, as the experience of luxury and travel, health and wellness, and luxury consumables. Luxury spending in the Middle East and North America have global HNWIs exceeded averages.155 comparison with Ultra-HNWIs, who favored more tangible investments such as art collections, HNWIs, in general, were more likely to spend on "intangibles".
Looking Ahead
The global art market and the segments of the luxury industry tend to be "latecomers to economic downturns." Consequently, some industry analysts have expressed fears that these sectors in May still be affected by the turbulence in financial replica rolex markets in late 2007. However, historically, investing in fine art, private planes, luxury cars and other high-value collectibles have been more immune to economic slowdown, their ultra-HNW buyers tend to be less affected by these trends. "Affordable (and aspirational) luxury goods, which are more accessible to HNWIs and people less fortunate, may suffer more impact if the drop is sustainable.
Despite these concerns, the analysis suggests that new wealth and growing consumer demand in the Asia-Pacific, Eastern Europe and the Middle East will continue to outweigh the pressures of economic stagnation in Western markets.
