The pandemic has had an unprecedented impact on ultra-high net worth, high net worth, and affluent populations; their wealth, as well as their spending habits on luxury goods and services. The top wealth segments stand out more now than ever before and remain the key consumers and drivers of luxury goods. We provide an overview of the global luxury goods and wealth landscape and consider the implications of the pandemic on luxury businesses seeking to target wealthy and affluent consumers.
This report comes in PPT.
As we are still in the midst of the COVID-19 pandemic which creates greater financial uncertainties and insecurities for regular income earners than for wealth holders, those in the top wealth segments stand out more than ever before as the key consumers and drivers of the luxury goods industry.
Thanks to a positive economic outlook, emerging and developing Asia (especially China and India) will see impressive growth in the number of UHNWI, HNWI and affluent adults between 2022 and 2030. Nevertheless, the US is expected to remain by far the biggest wealth and luxury market in total consumer numbers.
The pandemic remains a significant constraint on luxury goods going into 2022. Ongoing travel restrictions, lockdowns and social distancing measures are still in place in some key markets. However, luxury goods sales continue to recover thanks to strong global GDP growth, rising consumer confidence as well as more targeted mitigation practices and greater consumer adaptation.
As home isolation has accelerated the already increasing use of digital devices among consumers across markets and generations, brands are shifting to digital marketing and e-commerce, implementing digital components to the in-store shopping experience, and beginning to meet emerging consumers in the “metaverse” and other digital platforms.
New customer acquisition remains a costly challenge. Luxury brands across categories are increasingly vying to increase purchase occasions and reach entirely new consumer groups by expanding their product offering both within existing and across new, especially fast-growing, product categories – including through well-publicised collaborations with culturally-relevant brands and personalities.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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