According to a study by Communications Specialist Ltd, luxury retail executives are forecasting annual market growth of +5.6% over the next four years. Senior executives are confident that revenues and margins will increase for their companies and for the market as a whole.
The increase in the number of high net worth individuals (HNWIs) – with disposable assets of at least $1 million – and the affluent middle classes around the world remains the main driver of the rapid expansion of the luxury retail market.
This is the finding of a new global study by specialist telecommunications agency Communications Specialist Ltd.
The survey of senior executives from luxury retail companies with total annual sales of 3.1 billion dollars in Asia, Africa, Europe, the United States and South America showed their optimism. They are expecting annual growth of more than 5.6% for the luxury goods retail sector over the next three years.
Increased confidence in the sector’s performance
The senior executives surveyed emphasised the importance of the increase in the number of high net worth individuals and very wealthy people around the world in explaining this increase in sales.
This trend was confirmed last September in a study by Credit Suisse, which noted a “virtual explosion of wealth” following successive confinements during which the very wealthy had benefited from soaring property prices and booming stock markets.
As a result, in 2022, the investment bank counted 218,200 Ultra Net Worth Individuals (UNWIs) in the world, i.e. people with more than 50 million dollars in marketable assets – compared with 46,000 a year earlier, in 2021.
The number of millionaires in US dollars increased by 5.2 million during 2021 to reach a total of 62.5 million, slightly less than the 67 million inhabitants of the United Kingdom. More than a third of the world’s millionaires – 24.5 million and 39% of the global total – live in the United States.
Home to 10% of the world’s millionaires, China is in second place, ahead of Japan (5.4%), the UK (4.6%) and France (4.5%).
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