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INTRODUCTION Over the past decade, Wealth-X has published reports on a variety of luxury assets, ranging from yachts and private jets to high-end real estate. In Wealth-X's new Global Luxury Outlook 2020: A World of Changing Preferences, we take a holistic view of the world of luxury, seeing it as its own category that includes luxury goods and lifestyle services, fine art, private jets, yachts, cars, travel, real estate and other assets. This report sheds light on how wealthy individuals approach luxury in their lives and how this is changing – and we examine the many differences among the wealthy that exist under these two themes. While we define a ‘wealthy’ individual as someone who has at least $1m in net worth, our analysis is mostly shown across the two tiers of wealth within our primary focus: VHNW ($5m to $30m) and UHNW ($30m and above). This report also occasionally delineates among the UHNW tier, which is significant when considering the ownership of large-ticket items such as private jets and yachts. We first explore the interlocked relationship between wealth growth and the development of the luxury goods and services industry. No discussion can be complete, however, without touching on how the Covid-19 pandemic has brought much of the luxury industry to a standstill and how it will continue to have a profound effect. From customer relationship management to marketing strategies and personalized solutions, data is becoming increasingly important to luxury brands around the world. We provide insight on the wealthy, not only at a country and city level but also at the cohort and product level, which demonstrates the value of understanding the intricacies of your specific market metrics. Our Global Luxury City Index benchmarks cities on specific criteria to find the world’s top 15 cities where wealth, luxury retail and a luxury lifestyle are most deeply entwined. We then dig a little deeper, analyzing the wealthy population’s affinity for luxury, gaining an insight into how the level of propensity to own luxury assets varies among cities and according to certain key characteristics such as wealth source, gender and age. Via a study of archetypes, we also find that there are characteristic differences between the ultra wealthy individuals who purchase private jets, those who buy yachts and those who collect fine art. Finally, we take a look at how the wealthy’s luxury preferences are changing in these extraordinary times. Wealth-X’s Global Luxury Outlook 2020: A World of Changing Preferences provides exclusive insights on the intersection between luxury and wealth, making it an essential read for any provider looking to prospect for, target and engage with the wealthy.
KEY DEFINITIONS Very high net worth (VHNW) individuals Those with a net worth of $5m-$30m Ultra high net worth (UHNW) individuals Those with a net worth of $30m+ (also referred to as the ‘ultra wealthy’)
ACKNOWLEDGMENTS We would like to thank the following individuals (listed alphabetically) for their valuable contributions to our research, adding both texture and deeper insight: Alistair Brown | CEO, Alistair Brown International Real Estate Winston Chesterfield | Principal, Barton Jaclyn Sienna India | CEO, Sienna Charles
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WEALTH-X GLOBAL LUXURY OUTLOOK 2020: A WORLD OF CHANGING PREFERENCES
