Some 211,275 Super Rich households spent $234 billion on luxury purchases last year, accounting for 19 percent of all global luxury spending, according to data just released by research firm Wealth-X.
In a press interview Wealth-X President David Friedman said luxury brands shouldn’t look at what is being spent but untapped potential. He noted mass affluent consumers continue to pull back on spending yet luxury goods companies still are not taking advantage of additional spending power the Super Rich present. The report showed that share of luxury expenditures by Ultra High Net Worth (UHNW) families increased from 17 to 19 percent from 2012 to 2013.
Travel/Hospitality was top in spending at $45 billion, followed by automobiles at $40 billion, fashion (apparel and accessories) at $28 billion, jewelry/watches and art tied at $25 billion. Private jets totaled $23 billion in the report, followed by yachts at $22 billion, home and wines/spirits both at $8 billion and beauty at $4 billion.
The Wealth-X report shows that despite being about 0.004 percent of the world’s population this targeted group accounts for 35 percent of all luxury watch and jewelry purchases, 28 percent of all home purchases, 22.5 percent of all travel/hospitality spend, 20 percent of all luxury apparel, 14 percent of all luxury accessories, and 9 percent of all luxury cars.
The report also found the Super Rich own an average of 2.7 properties. Some 30 percent (over 70,000) of UHNWs have at least one residence outside their primary business country.
|Category||Annual Spent in Billions||% Share of Luxury Market|
|Travel/Hospitality||$ 45 billion||22.5 %|
|Automobiles||$ 40||8.9 %|
|Private Aviation||$ 23||82.1%|
|Other Fashion||$ 1||8.5%|
|Total||$ 234 billion||18.9%|
by Doug Gollan