Over the years I have been monitoring the luxury goods market. It is time for an update, especially as it pertains to Richey Rich USA!
America’s share of the ultra rich is exhibiting robust growth in comparison to Europe and emerging markets. A quick look at the numbers:
· America added 1.6 million millionaires last year compared to China (in the number two slot) adding 90,000.
· In 2014, Americans with net worth of $50 million outnumbered their Chinese counterparts eight to one.
· Luxury spending in the United States totaled $73 billion in 2014, a 5 percent growth over the previous year. Note: China and Russia exhibited negative growth and the above luxury retail spending figure was still higher than the next four countries combined – in billions, Japan ($20.4), Italy ($18.2), France ($17.3) and China ($16.9).
What are some of the contributing factors? For starters, a whole new generation of 30 and 40 year olds making money on technology, hedge funds and real estate. Add in a new wave of wealthy immigrants. Consequently, luxury retailers are gearing up by building spacious, opulent stores on both coasts as well as in cities like Dallas and Houston which have experienced growth of high-net-worth individuals of 20 and 18 percent respectively. What do I mean by spacious, opulent stores? Next time you are in Los Angeles stop by Yves Saint Laurent’s 10,000 square foot flagship store on Rodeo Drive complete with white marble floors and polished brass. Of course, you will have to go in the front door, not the exclusive, back-alley entrance reserved for celebrities.
Richey Rich USA! Billionaires are the new millionaires.