The Impact of the Ultra High Net Worth Luxury Consumer

Transcription

1 The Impact of the Ultra High Net Worth Luxury Consumer Paris November 6 th,

2 Agenda Your Target Focus on France The Luxury Industry Engaging with Your UHNW Clients 2

3 Definition at least US$30 million Ultra 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 3

4 More Wealth, More Wealthy 200,000 UHNW Individuals US$28 Trillion Total Net Worth Source: Wealth-X and UBS World Ultra Wealth Report

5 Addressable Ultra Affluent Market Size 800,000 Principal, plus spouse and 2 adult children Source: Wealth-X Institute Analysis 5

6 Source: Wealth-X and UBS World Ultra Wealth Report

7 Europe: 29% of Global UHNW Population Source: Wealth-X and UBS World Ultra Wealth Report

8 France: Europe s Fourth Largest UHNW Country UHNW POPULATION UHNW WEALTH US$ billion UHNW POPULATION UHNW WEALTH US$ billion POPULATION CHANGE % WEALTH CHANGE % EUROPE 58,065 7,675 53,440 6, % 10.4% GERMANY 17,820 2,345 15,770 2, % 14.4% UNITED KINGDOM 10,910 1,375 10,515 1, % 3.8% SWITZERLAND 6, , % 14.5% FRANCE 4, , % 10.5% Source: Wealth-X and UBS World Ultra Wealth Report

9 Paris: Europe s Second Largest City RANK CITY COUNTRY UHNW POPULATION UHNW POPULATION POPULATION CHANGE % 1 LONDON UNITED KINGDOM 6,360 6, % 2 PARIS FRANCE 3,195 2, % 3 ZURICH SWITZERLAND 1,940 1, % 4 MUNICH MUNICH 1,740 1, % 5 GENEVA GENEVA 1,460 1, % 9

10 Moving Away? Almost 20% of French-born UHNW individuals are based outside of France 10

11 But France Attracts Other UHNW Individuals one of the top ten countries for secondary residences for the UHNW population Particularly the French countryside and the Côte d Azur 11

12 Luxury Industry Sentiment Index: Up 8% Since Beginning of the Year Source: Wealth-X Luxury Sentiment Survey Vol

13 Impact of UHNW Luxury Spending ASSET 2013 WORLDWIDE SPEND US$ Billion 2013 UHNW MARKET SHARE % Art 21 32% Aviation 19 83% Yachting 13 65% Fashion 51 17% Travel & Leisure 40 21% Other 54 9% 17% UHNW Share of Luxury Market Source: Wealth-X Institute Analysis Total % 13

14 Average Per UHNW Capita Luxury Spending* $ $ $ $ $ $ $ $ Total Asia North America Latin America Oceania Middle East Europe Africa * For 2013; Excludes Real Estate Source: Wealth-X Institute Analysis 14

15 Chinese Tourists: A Big Clientele in Europe Other 2% Mainland China 10% Europe 27% Asia (excluding mainland China) 40% USA 21% Source: Wealth-X Institute Analysis 15

16 Engaging with Your UHNW Clients 16

17 Which Events? 15% 25% 17% Extend Client Base Build Loyalty Increase Brand Awareness Increase Sales Launch New Good/Service 19% 24% Source: Wealth-X Luxury Sentiment Survey Vol.3 17

18 Why Events? 9% 29% 17% 19% 26% Product Display Product Launch Product Education Secondary Focus Other Source: Wealth-X Luxury Sentiment Survey Vol.3 18

19 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 19

20 Key Clients Intelligence 20

21 Improve Luxury Retailing Your Data Screening UHNW Dossiers Identify who and where your clients are Relevant UHNW clients and prospects dossiers added to Your Favourites 21

22 Learn About Individuals

23 Develop a Personal Approach 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

24 Improve Targeting, Maximise Revenue CASE STUDY: PRIVATE AVIATION EVENT US$120 million new business SCREENING OF GUEST LIST 80% accepted PERSONALISED INVITATION FOR IDENTIFIED UHNW INDIVIDUALS 50 UHNW individuals invited

25 Take Technology & Data Further Target Identified Facial Recognition Profile Found 25

26 Connect With Us Jean-Luc Gustave Vice-President, Luxury

27 Connect With Us AMERICAS NORTH ASIA AUSTRALIA AND NEW ZEALAND EUROPE INDIA MIDDLE EAST AND AFRICA SOUTH EAST ASIA 27