LONDON, July 8, 2015 /PRNewswire/ -- A surge in the number of millionaires and a shift in luxury consumer behaviour in emerging markets in the coming decade present opportunities for brands that serve the wealthy, according to Decades of Wealth: The Next 10 Years In Wealth & Luxury, a new report released by Wealth-X today.
Below are some of the key findings from the study:
- Emerging markets such as India and South Africa will see their millionaire populations rise significantly in the coming decade.
- There will be 437,000 millionaires In India by 2018, and that number is projected to double by 2023.
- Wealth growth in Africa – particularly in the key markets of South Africa, Nigeria and Kenya – will continue, at a rate of over 10% per annum.
- US$4.1 trillion will be transferred globally by ultra high net worth (UNHW) individuals to the next generation over the next decade, including US$1.2 trillion in liquid assets.
- The way wealth is used by the newly wealthy will adapt and change in emerging markets.
- The rise in discernment among the world's wealthy will not only affect the brands they buy, but it will also affect what they buy.
Wealth-X identifies four implications of the shift in luxury consumer behaviours in emerging markets for brands that target wealthy consumers:
- Less Internationalisation, More Localisation: In the coming decade, it will be increasingly important to segment and understand the wealthy at a more detailed level – most likely defined by cities within countries. Brands should also be prepared for the non-linear development of economies and wealth creation.
- Pushing Frontiers Will Generate New Spending and Opportunities: The wealthy have always been among any early adopter group, and new frontiers will become the focus of both luxury consumption (such as space travel) and of investment.
- Experience More Desired Than Products: Growing discernment among the rich in emerging markets will increasingly shift luxury consumption away from product purchases to experiences such as space travel and underwater holidays.
- Exclusivity and Personalisation Sought: As well as fundamental rarity, personalisation will be the second major driver of exclusivity in the next decade. This will be manifested in tailored and unique products, through to one-off experiences.
- Intimacy: Privacy and Closeness Will Gain Importance: There will be an increasing desire for privacy among the wealthy in the future, yet at the same time a desire for greater intimacy among the select providers they trust.
Download the full report here.
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world's media such as CNBC, Financial Times, Thomson Reuters and BBC. Wealth-X has more than 250 staff in 10 locations, including Singapore, London and New York.