Super rich increase worldwide – with a handful of exceptions
Luxury companies, along with the people that invest in them, should rejoice at recent news that the number of “super rich” people is climbing worldwide. These individuals, defined as anyone with a net worth of more than $50 million, are the ones who fuel the highest end of high-end luxury; the ones who buy Ferraris, luxury yachts, Swiss watches, and expensive trinkets for friends and family.
According to Knight Frank’s latest Wealth Report, Russia and Brazil saw the biggest gains, at an almost 30% increase in this demographic. The UK, however, joined a handful of countries that saw it decline.
The UK saw a 2% decline (year on year) in the number of people worth $50 million or more in 2017. Over five years, it becomes a 6% decline. What’s unusual about this is that this cohort of big spenders has swelled by 10% worldwide.
It’s not all bad news for Brits. London remains one of the richest cities in the world, and is on course to receive huge amounts of money from “non-banks” over the coming year. In fact, in London, the number of people worth £50 million or more actually grew over 2017.
In regards to sector growth, these consumers have favoured fine wines and fast cars for the past decade – and that looks set to continue. The report said that spending on luxury vehicles had risen by 457% over the past decade, and 9% over 2017 alone. Wines, meanwhile, had seen an increase of 267% over ten years, and 24% last year.
Dominion holds a number of companies in its Global Trends Luxury Fund that benefit from the trends described in this article. Opinions expressed are those of the writer, at time of writing, rather than those of Dominion itself.
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