Global Luxury Market Booms: Chinese and South Koreans Lead the Way
- Personal luxury goods, such as clothing, cosmetics, handbags and jewelry, have seen decades of sustained growth
- The affluent Chinese population is a major target market for luxury retailers
- South Koreans are the biggest buyers of premium brands
- And luxury cars sales are cruising, with the sector expected to continue growing in 2021.
Wealthy Individuals Drive Increase in Luxury Goods During Pandemic
- The demand for luxury cars, private jets and real estate increased during the pandemic due to wealthy individuals avoiding public transport, supply chain problems, global wealth growth and a desire for more space
- Car manufacturers shifted their efforts onto their premium products to compensate for limited microchips
- Private jet companies saw a 20-30% drop in prices when the first lockdown occurred, but then surged due to businesses needing to send people to inaccessible places
- In 2021, luxury home sales rose 35% higher than pre-pandemic levels with 2022 seeing price records smashed in many of the world’s most expensive housing markets.
Luxury Real Estate Market Resilient Despite Economic Turmoil, Booms Ahead with Wealth Transfer and Growing Youth Spending.
- The luxury real estate market has been largely unaffected by stock market and interest rate fluctuations
- Cash buyers have insulated this sector from the punitive measures affecting more modest homes
- The future holds promise with a wealth transfer in the next 10-15 years, which will lead to an increase in luxury consumption
- The younger generations are driving growth due to their willingness to spend large amounts of money.