Earlier in the week I posted Richey Rich USA –Part I. Specifically, I provided an overview about the new generation of millionaires and how luxury retailers were gearing up for them. Today I have decided to post more detail about some of the particulars of luxury spending.
I enjoy statistics, so detailed below are some additional Richey Rich facts:
· More than $25.5 billion was spent on luxury goods last year in Manhattan (Bain) making it the largest luxury market with Japan second at $20.4 billion.
· Fashion brands are capitalizing on the robust growth of the Richey Rich in the USA by opening new spacious, luxurious stores. The brand Yves Saint Laurent reported an increase of 12 percent in North America sales during their past fiscal year.
· Other major luxury items experiencing a jump in sales are the spirits category driven by high-end bourbon and no surprise, luxury automobiles. BMW (a.k.a. Beamers) announced they are spending over $4 billion to expand its South Carolina manufacturing facility and upgrade their dealerships.
While I was in the midst of writing this week’s posts, I read a news flash worthy of mentioning. Shane Smith, CEO of Vice Media Inc. was reported to have spent $300,000 for an industry dinner party (30 people) at the Prime Steakhouse in Las Vegas this past January that included some bottles of wine that cost more than $20,000.
$300,000 for dinner! Richey Rich USA! Billionaires are the new millionaires.