Where Has All The Money Gone 02031012
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Overview of changing demographics and behaviors of the affluent around the globe.
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Where Has All The Money Gone 02031012
- 1. “Where h all th money gone, “Wh has ll the long time passing…” Versailles February, 2012 Christopher P Ramey P. President, Affluent Insights 561.876.8077 cpr@affluentinsights.com
- 4. We serve the affluent and sell luxury h ffl d ll l because that’s where the money is.
- 5. 2010 & 2011 were very good years for personal luxury 2004 136 €B 2005 147 2006 159 2007 170 2008 167 2009 153 2010 173 2011 191 Bain & Company for Altagamma
- 8. How many affluent individuals are there in the world? 1. 1 ~ 10 900 000 10,900,000 2. ~ 16,500,000 3. 3 ~ 18 500 000 18,500,000 Capgemini Merrill Lynch World Wealth Report 2011
- 10. What percent of the world’s affluent live in Brazil? 1. 1 ~ 0.5% 0 5% 2. ~ 1.4% 3. 3 ~ 4 3% 4.3% Capgemini Merrill Lynch World Wealth Report 2011
- 11. What percent of the world’s affluent live in the United States? 1. 1 ~ 31% 2. ~ 43% 3. 3 ~ 51% Capgemini Merrill Lynch World Wealth Report 2011
- 12. # of HNWIs HNWI Growth % (in thousands) 2009 - 2010 USA 3,104 3 104 8.3% 8 3% Japan 1,739 5.4% German 924 7.2% China 535 12.0% UK 454 1.4% France 396 3.4% Canada 282 12.3% Switzerland 243 9.7% Australia A t li 193 11.1% 11 1% Italy 170 -4.7% Brazil 155 5.9% India 153 20.8% Capgemini Merrill Lynch World Wealth Report 2011
- 13. USA 21% Japan 16% Owners of Italy 8% wealth above Germany 7% UK 7% USD 100,000 , France 6% by country of China 6% residence Spain 3% Canada 3% Australia 3% Brazil 2% Taiwan 1% Korea 1% Netherlands h l d 1% ROW 13% Credit Suisse
- 14. Latin A L i America i Ultra High Net Worth Measured by Population Brazil 4,725 Mexico 2,900 Argentina A ti 1,050 1 050 Columbia 900 Peru 775 Chile 750 Venezuela 500 Guatemala 310 Ecuador 310 Dominican Republic 225 Wealth-X
- 15. Conspicuous Consumption Continuum Old money New money Conspicuous Non- Conspicuous
- 16. The Least Established Segments Spend the Most on Luxury by Population Aspirational Rising Middle Beyond New Money Old Money Mass Market Class Money Segment size in 6* major 115 m HH 25 m HH 6 m HH 1 m HH .6 m HH markets Luxury Spending 45-50 35-40 55-60 10 5-10 2010 (€ billions) *Traditional categories; Brazil, China, Europe, Japan, Russia, United States Boston Consulting Group
- 17. Newcomers by 2025 Dropouts by 2025 Bangkok Athens Beijing Barcelona Chengdu Denver The World Chonguing Detroit Moves West Delhi Hamburg Doha Lille World’s Top 50 Foshan Melbourne cities, ranked Guangzhou Minneapolis-St. Paul by GDP - Hangzhou Munich changes by Mumbai Nagoya 2025 Nanjing Oslo Shenyang Rhein-Main Shenzhen Rio de Janeiro Tianjin Stuttgart Wuhan Tapei McKinsey Xi'an Vienna
- 18. The Gl b l M k f L Th Global Market for Luxury is Close to €1 Trillion* i Cl T illi * Travel and hotels 270 Luxury cars 250 Watches and jewelry 100 Technology 100 Fashion and clothing 50 Leather goods & accessories 50 Alcohol and food 50 Furniture and décor 40 Cosmetics and fragrances 30 Other (for example, spas and clubs) 20 *Global estimates were based on an extrapolation of data from 7 countries that represent 75% of the global market for luxury. Boston Consulting Group analysis from Ipsos Research
- 19. Americans put less value on luxury European markets constitute 37% of luxury goods demand Europe 37% Americas 30% Japan 11% Greater China 11% Other Asia 6% ROW 5% * Luxury market as defined by Altagamma: women s wear + menswear + leather goods + shoes + women's watches & jewelry + perfume & cosmetics 2010e Bernstein Analysis – Altagamma; Luxury market as defined by Altagamma
- 20. Americans put less value on luxury Aspirational Accessible Elitist Luxury Luxury Americas 3% 16% 80% p Europe 12% 41% 46% Japan 15% 37% 48% Asia Ex- Japan p 14% 56% 30% ROW 11% 83% 6% Brands by category Hermes LV Burberry BV Fendi Coach Chanel Gucci Ralph Lauren Prada Tommy Hilfiger Ferragamo Calvin Klein Altagamma, Haver, Bernstein Analysis
- 21. In the wake of a crisis, luxury and status , y matter less to the affluent. Personal values have been recalibrated.
- 22. Understanding why luxury consumers shop online is crucial Avoid sales-assistants 46% Online b O li bargain hunter i h t 23% Time pressed 16% Altagamma – Based on luxury consumer panel
- 24. What percent of America’s affluent come from a middle-class background? middle class 1. ~38% 2. ~52% 52% 3. ~80% Harrison Group
- 26. 80% raised in a middle-class or less environment Have been affluent for less than 20 years ~61% still on the front lines of business 70% of their children attended public school Harrison Group
- 30. Shifts in Marketing hf k 2000 2012 Needing stuff Demanding experiences New New and Now Self S lf Community C it Mass Tribes Conformity Customization Awareness Neurological connectivity Robin Lewis & Michael Dart “New Rules of Retail “ 2011
- 31. The evolution of defining yourself You are what you eat You are what you buy You are what you value
- 32. Political Affiliation by gender & net worth $800K - $1.5 - Males Females $1.49M $5.9M $6.0M + Democrat 23% 39% 32% 31% 19% Republican 47% 34% 37% 44% 50% Other 30% 27% 30% 25% 31% American Affluence Research Center
- 33. Spending by Age of Head of Household $50K $40K $30K $20K $10K $ 0K < 25 25-34 35-44 45-54 55-64 65 + Henry Dent “The Roaring 2000 Investor”
- 34. Age Breakdown of HNWI Population - 2010, by Region HNWI percent t under 55 Asia Pacific ex-Japan 69% Middle East 56% Europe 45% Latin America 45% North America 32% Capgemini Merrill Lynch World Wealth Report 2011
- 35. Where has all the money gone? China Faster growing larger economy, younger, new money Middle East, India and Brazil Young, new money USA and Japan Older mature market slow growth market, USA doesn’t value luxury Financial crisis may affect USA Europe Value luxury, must resolve financial crisis, slow growth
- 37. The Middle-East has the least number of affluent Middle East women as a % of total. Latin America is next worse: tied with who? 1. United States 37% 2. 2 Japan 31% 3. Asia-Pacific (ex. Japan) 24% 4. 4 Europe 18% 5. Latin America 18% 6. 6 Middle East 14% Capgemini Merrill Lynch World Wealth Report 2011
- 38. Thank you Chris Ramey 561.876.8077 561 876 8077 cpr@affluentinsights.com Christopher P. Ramey CPRamey CPR www.FloridaLuxuryCouncil.com www.AffluentInsights.com This presentation is the property of Affluent Insights and Chris Ramey. Any unauthorized copying, disclosure, use or distribution is strictly prohibited without the express written consent of Mr. Ramey. d b l hb d h h f
- 39. Chris Ramey is America's foremost authority on marketing and selling to the affluent. Consulting services – Ramey’s personal clients range from hotels, retailers and manufacturers to professional sports organizations and doctors. He consults with unique insights reflected by the breadth of his clients clients. Regardless of the category, Ramey can help you increase your sales to luxury customers and affluent consumers. Keynotes & seminars – Ramey is a professional speaker and member of National Speakers Association. His presentations are entertaining, educational and motivating, and he is routinely the highest rated speaker g, y g p at association and corporate events. Christopher P. Ramey 561.876.8077 cpr@affluentinsights.com