{"id":10409,"date":"2024-10-23T11:31:30","date_gmt":"2024-10-23T11:31:30","guid":{"rendered":"https:\/\/agility-research.com\/?p=10409"},"modified":"2025-02-20T05:57:17","modified_gmt":"2025-02-20T05:57:17","slug":"how-can-luxury-brands-lure-the-ultra-high-net-worth-consumers","status":"publish","type":"post","link":"https:\/\/agility-research.com\/zh\/how-can-luxury-brands-lure-the-ultra-high-net-worth-consumers\/","title":{"rendered":"\u5962\u4f88\u54c1\u724c\u5982\u4f55\u5438\u5f15\u8d85\u7ea7\u9ad8\u51c0\u503c\u6d88\u8d39\u8005\uff1f"},"content":{"rendered":"\n
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MILAN \u2014<\/strong> Luxury\u2019s skyrocketing prices may have left aspirational consumers<\/a> with window shopping as their sole comfort, but high- and ultra-high-net-worth individuals don\u2019t seem to be skimping on their shopping<\/a> sprees, undaunted by the dampened macroeconomic landscape.<\/p>\n\n\n\n

Over the past 12 months, Europe, as well as Japan, has been swarming with UHNWIs eager to splurge on\u00a0luxur<\/a>y products and, most importantly, experiences.<\/p>\n\n\n\n

The latest \u201cLuxury Insights\u201d monitor compiled by tax-free shopping solutions provider Global Blue and luxury consultancy Agility Research, unveiled Tuesday here and called \u201cThe Era of Ultra Luxe Shoppers,\u201d provides an identikit of this sought-after consumer cluster.<\/p>\n\n\n\n

This includes individuals who spent 137,000 euros per capita in the September 2023 to August 2024 period, according to the report, based on the two companies\u2019 combined data.<\/p>\n\n\n\n

Spend on luxury goods and experiences, as well as premium and lifestyle brands\u2019 products, has grown 26 percent for this demographic compared to 2019, the year picked for comparison to offset regional fluctuations in the aftermath of the COVID-19 pandemic and geopolitical instability.<\/p>\n\n\n\n

Often secretive and hard to reach, the wealthiest \u2014 who represent 0.1 percent of tax-free shoppers, but account for 13 percent of tax-free shopping spend \u2014 are the holy grail for luxury companies aiming to secure loyal customers with deep pockets.<\/p>\n\n\n\n

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What\u2019s more, the global population of millionaires is expected to grow by 38 percent by 2027, Agility Research estimated, with UHNWIs in key markets \u2014 including the U.S., India and the U.K. \u2014 forecast to see a significant jump in their net worth this year, according to the same analysis.<\/p>\n\n\n\n

China remains the only country with a less rosy forecast, but nonetheless is the biggest contributor to the UHNWIs\u2019 cluster, making up 25 percent of total tax-free spend in the period, back at 2019 levels.<\/p>\n\n\n\n

The American and Gulf Cooperation Council\u2019s wealthiest have increased their spends significantly in the period, jumping 3.7 times and 2.8 times, respectively, compared to 2019.<\/p>\n\n\n\n

The fifth-largest economy, India\u2019s fast-paced growth is shaping a new generation of wealthy individuals with strong spending power, as the study highlights. In the September 2023 to August 2024 period their tax-free spend hit 140,000 euros, a six-fold jump compared to 2019.<\/p>\n\n\n\n

This was driven by their likening of luxury purchases to means of quality-of-life enhancement, self-expression and confidence boosters.<\/p>\n\n\n\n

\u201cIndia is possibly what China was 20 years ago,\u201d said Mathieu Grac, Global Blue\u2019s vice president of intelligence strategy. \u201cIn 10 years India will lead on spending for luxury products.\u201d<\/p>\n\n\n\n

The five top destinations for UHNWIs to spend their money include three Asian spots \u2014 Singapore, Osaka and Tokyo \u2014 the latter two showing how Japan is reclaiming its position as a top shopping hub due to the weak yen.<\/p>\n\n\n\n

\u201cThe proximity of Japan to their own market is a reason for resorting to the country,\u201d Grac said with regards to Chinese wealthy consumers spending more locally.<\/p>\n\n\n\n

Not only that: Luxury-shaming in China, a phenomenon whereby the wealthiest choose not to flex their spending power for fear of being demonized, is pushing them to spend abroad, explained Amrita Banta, managing partner at Agility Research.<\/p>\n\n\n\n

\u201cYou don\u2019t want to be seen at these shops, that\u2019s why a lot of money is being spent outside of the country. In fact, China is the single consolidated luxury market where the share of overseas purchases is bigger [than the domestic one],\u201d and represents 56 percent of total spend, she said.<\/p>\n\n\n\n

By country, France and Italy continue to lead the list of top destinations, followed by Japan.<\/p>\n\n\n\n

\u201cAt the current pace of growth, soon Japan will be bigger than Italy for luxury shopping, ditto for France,\u201d Grac said.<\/p>\n\n\n\n

However, in the current global scenario marked by travel where leisure and business purposes are increasingly blurrier, smaller resort destinations are on the rise. Hot spots such as Mykonos, Greece; Courchevel, France; Saint Moritz; and Ibiza, Spain are the fastest growing locations by luxury spend shares.<\/p>\n\n\n\n

\u201cThis is a population you get to look at globally,\u201d Banta said.<\/p>\n\n\n\n

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The study estimates that each UHNWI generally taps into nine brands, splurging the most money \u2014 about 91,000 euros \u2014 on watches and jewelry typically from a single, favorite label, followed by leather goods from two brands and ready-to-wear from as many as five brands, with a per capita spend of 39,000 euros.<\/p>\n\n\n\n

According to the research, however, only two out of the nine brands have identified their UHNWI customers and added them to their VIC, or very important clients, lists of the top 1 percent of their clientele.<\/p>\n\n\n\n

There\u2019s a lot of untapped potential, especially as UHNWIs are eager to be part of that roster \u2014 and for more than one reason.<\/p>\n\n\n\n

\u201cAll of these people are luxury VICs but they are also being pampered by the private banks, top tier travel and top tier credit card [operators]. You\u2019re talking about people who are very well pampered and exposed, but within that demography they also enjoy their VIC status, especially as it ensures priority access to events. They love experiences that money can\u2019t buy,\u201d Bants explained.<\/p>\n\n\n\n

These may be customers that one doesn\u2019t necessarily need to lure in-store, but certainly has to treat with best-in-class retail experiences to cement a relationship and fall within that cluster of nine go-to brands each UHNWI is reportedly loyal to.<\/p>\n\n\n\n

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\u201cHow Can Luxury Brands Lure the Ultra-high-net-worth Consumers?\u201d courtesy of Martino Carrera\u00a0from WWD (October 9, 2024). \u00a9 2024 WWD. All rights reserved.<\/em><\/p>\n\n\n\n

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MILAN \u2014 Luxury\u2019s skyrocketing prices may have left aspirational consumers with window shopping as their sole comfort, but high- and ultra-high-net-worth individuals don\u2019t seem to be skimping on their shopping sprees, undaunted by the dampened macroeconomic landscape. Over the past 12 months, Europe, as well as Japan, has been swarming with UHNWIs eager to splurge on\u00a0luxury products and, most importantly, […]<\/p>\n","protected":false},"author":5,"featured_media":11122,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,41],"tags":[49,46,44,48,50],"class_list":["post-10409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting","category-news","tag-hnwi","tag-insights","tag-luxury","tag-luxury-brands","tag-uhnw"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n