At its present rate, global HNWI wealth may top $100 trillion by 2025.Ĭredit Suisse takes a more inclusive look at the wealthy, including the value of one’s primary residence and the other things that Capgemini excludes. Those who can afford luxuries have more money than ever to spend on it.Ĭapgemini, in its World Wealth Report 2018, reported global high-net-worth-individual wealth rose 10.6% in 2017 to surpass $70 trillion, the first time it has reached this level and following six consecutive years of wealth gains.Ĭapgemini defines the HNWI as those with investible assets of $1 million or more, excluding primary residence, collectibles, consumables and consumer durables. What gives luxury brands hope is the growing wealth class.
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“We need to recognize the fact that at a certain point we’re going to slow down, we cannot keep on growing 50-60% per month, it’s impossible,” he said in a video to company employees. by 2020.Įven Gucci CEO Marco Bizzarri, who sits on top of the world’s fastest-growing legacy luxury brand, knows the good times can’t last. Morgan among ultra-high-net-worth investors (those with more than $30 million in liquid financial assets) found that 75% expect a recession to hit the U.S. The investment community dislikes any uncertainty and there is plenty of it to go around.
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Goldman Sachs concurs and dropped its 2019 forecast for luxury industry sales growth from a previous 7% to 5%. Even evergreen LMVH suffered a 6% decline in stock values.įrench investment bank Societe General foresees similar trends, forecasting a “slowdown in the luxury sector has just started as concerns over the spending trend of affluent Chinese millennials and the impact of the Yellow Vest protest in France.” Tod’s took the unenviable prize as the worst stock performer in November with its stock price off 22.4%, followed by Michael Kors down 21% and Tiffany down 18.2%.