Wealth-X has released a new Luxury Sentiment Survey, the first volume of what that market-intelligence concern tells us will become a regular series, helping readers “understand not only how the luxury industry engages with ultra high net worth (UHNW) individuals, but also how optimistic those luxury industry firms are with regards to the future of their relationship with these individuals.”
In the next volume of the series, Wealth-X plans to introduce the Luxury Industry Sentiment Index, which will reflect changes in the level of optimism.
It is establishing a baseline for those changes, and so for that index, at a moment when the luxury industry is feeling its oats. Seventy eight percent of the respondents predict an increase in their revenue from UHNW individuals in the first quarter 2014, almost 1/3d expect a revenue increase of more than 10%, and 71% said they are likely to expand into markets with great potential for future growth.
As the report observes, that last point, the ubiquity of expansion plans, suggests “optimism in the sector not only for Q1 2014, but also for long term prospects.”
Looking back over 2013, precisely half of respondents reported that North America was the source of their largest revenue share in the fourth quarter, then Asia (29%), Europe (19%), and the catch-all “other.”
Most of the clients of luxury companies are domestic consumers in the place where they are buying, not tourists....MORE