The Impact of the Ultra High Net Worth Luxury...
Transcript of The Impact of the Ultra High Net Worth Luxury...
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The Impact of the Ultra High Net Worth Luxury Consumer
ParisNovember 6th, 2014
Agenda
Your Target
Focus on France
The Luxury Industry
Engaging with Your UHNW Clients
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Definition
at least US$30 millionUltra High Net Worth Individuals
After accounting for shares in Public/Private companies, Residential Investments & Luxury Goods,
such as Art, Planes, Motor cars, Yacht, Watches & Jewellery
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200,000UHNW Individuals
US$28 TrillionTotal Net Worth
Source: Wealth-X and UBS World Ultra Wealth Report 2013
More Wealth, More Wealthy
800,000Principal, plus spouse and 2 adult children
Addressable Ultra Affluent Market Size
Source: Wealth-X Institute Analysis5
Source: Wealth-X and UBS World Ultra Wealth Report 20136
Source: Wealth-X and UBS World Ultra Wealth Report 20137
Europe: 29% of Global UHNW Population
France: Europe’s Fourth Largest UHNW Country
2013 2012 2012-2013
UHNW POPULATION
UHNW WEALTHUS$ billion
UHNW POPULATION
UHNW WEALTHUS$ billion
POPULATION CHANGE %
WEALTH CHANGE %
EUROPE 58,065 7,675 53,440 6,950 8.7% 10.4%
GERMANY 17,820 2,345 15,770 2,050 13.0% 14.4%
UNITED KINGDOM
10,910 1,375 10,515 1,325 3.8% 3.8%
SWITZERLAND 6,330 750 5,595 655 13.1% 14.5%
FRANCE 4,490 525 4,100 475 9.5% 10.5%
Source: Wealth-X and UBS World Ultra Wealth Report 20138
Paris: Europe’s Second Largest City
2013 2012
RANK CITY COUNTRYUHNW
POPULATIONUHNW
POPULATIONPOPULATION
CHANGE %
1 LONDON UNITED KINGDOM 6,360 6,015 5.7%
2 PARIS FRANCE 3,195 2,860 11.7%3 ZURICH SWITZERLAND 1,940 1,805 7.5%
4 MUNICH MUNICH 1,740 1,660 4.8%
5 GENEVA GENEVA 1,460 1,360 7.4%
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Moving Away?
Almost 20%of French-born UHNW individuals are based outside of France
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But France Attracts Other UHNW Individuals
one of the top tencountries for secondary residences for the UHNW population
Particularly the French countryside and the Côte d’Azur
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Luxury Industry Sentiment Index: Up 8% Since Beginning of the Year
12Source: Wealth-X Luxury Sentiment Survey Vol.1-4
ASSET
2013 WORLDWIDE
SPENDUS$ Billion
2013 UHNW MARKET SHARE %
Art 21 32%
Aviation 19 83%
Yachting 13 65%
Fashion 51 17%
Travel &Leisure
40 21%
Other 54 9%
Total 198 17%
17%UHNW Share of Luxury Market
Impact of UHNW Luxury Spending
13Source: Wealth-X Institute Analysis
Average Per UHNW Capita Luxury Spending*
$848 000
$1 101 000
$880 000
$777 000 $759 000 $755 000
$672 000
$360 000
Total Asia North America Latin America Oceania Middle East Europe Africa
14* For 2013; Excludes Real EstateSource: Wealth-X Institute Analysis
Mainland China10%
Asia (excluding mainland China)
40%
USA21%
Europe27%
Other2%
Chinese Tourists: A Big Clientele in Europe
Source: Wealth-X Institute Analysis15
Engaging with “Your” UHNW Clients
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Which Events?
17Source: Wealth-X Luxury Sentiment Survey Vol.3
25%
24%19%
17%
15%
Extend Client Base
Build Loyalty
Increase Brand Awareness
Increase Sales
Launch New Good/Service
Why Events?
18Source: Wealth-X Luxury Sentiment Survey Vol.3
29%
26%19%
17%
9%
Product Display
Product Launch
Product Education
Secondary Focus
Other
Why Referrals?
“The last hundred years have been defined by the mass media. In the next hundred years, information won’t be just pushed out to people. It
will be shared among the millions of connections people
have…Nothing influences people more than a recommendation from a trusted friend…
A trusted referral is the Holy Grail of advertising.”
-- Mark Zuckerberg
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Key Clients Intelligence
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Improve Luxury Retailing
Your Data Screening
Identify who and where your clients are
UHNW Dossiers
Relevant UHNW clients and prospects dossiers added to “Your Favourites”
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Learn About Individuals
• To make a good impression: get along with his children
• Discuss common interests:
– one of Niel’s favourite book is the Hitchhikers Guide to the Galaxy
– Niel owns a large stake in the music of Claude Francois
• Clear philanthropic attitude: enable children to build their own businesses
Develop a Personal Approach
Improve Targeting, Maximise Revenue
US$120 million new business
80% accepted
50 UHNW individuals invited
CASE STUDY: PRIVATE AVIATION EVENT
SCREENING OF GUEST LIST
PERSONALISED INVITATION FOR IDENTIFIED UHNW
INDIVIDUALS
Take Technology & Data Further
Profile Found
Facial Recognition
Target Identified
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WWW.WEALTHX.COM
Jean-Luc Gustave
Vice-President, Luxury
www.billionairecensus.com
www.wealthx.com/wealthxubswealthreport
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