NEW ORDER FOR AN ‘OLD FAVORITE’
GLOBAL COMPARATORS & UHNW
LUXURY
The Ultra-High Net Worth (UHNW) demographic is defined as individ- uals with a net worth in excess of $30m. Altrata’s World Ultra Wealth Report 2024 , which leverages data from Wealth-X, includes some new statistics and indicators about the demographic:
Digging deeper into lost meaning and misappropriation
426,330 (global total UHNW individuals) 161,280 (North America - 37.8% of total)
FIRST PERSON with KAAREN HARPER
$49.2trn (total UHNW wealth) $51m (median UHNW wealth)
As I sit down to write this I have just received a letter addressed, “Hello (insert first name)” from a company touting itself as a “luxury” provider. It’s time to put away the keys to the AI marketing machine for a mo- ment and give the word LUXURY a long overdue rest. Because - let’s be honest - the word has not only lost its luster, it’s lost its meaning. It is worth a look at the roots of the word. In Latin there are two words with this root: Luxuria and Luxus. “Luxuria” was used to denote extrav- agance, magnificence and splendor. “Luxus” was used to describe debauchery, overindulgence and a lack of moderation. Fast forward to Middle English and we find the familiar spelling, lux- ury, though it was used to denote lechery or lust. It wasn’t until the mid-17th century that we find it used in its current sense. So what is the experience we are trying to denote with this word? Certainly extravagance and magnificence and splendor seem rele- vant. But, I’m searching for a deeper expression of the modern experience: I believe it should denote the feeling one gets when we feel the sub- lime balance between form and content. Aesthetic balance between how something is and what it is. Too often we see a beautiful image only to be disappointed in person: the lush looking pastry that tastes like sawdust. But that moment when all senses are delighted at once and all the details are in harmony - that is rare, unique and worthy. Intimacy - it has always been and will continue to be the key to ‘true luxury.’ No form letter spit out by program no matter how detailed it is will replace the authentic warmth you get from exchanging informa- tion with a well-known client. There is a nuance - machine learning is far from mastering. In this era of social media/influencer marketing with its banal repetition, true intimacy is becoming precious. Ultimately, true luxury will always be defined by the details - the inti- mate details that allow {in the words of the philosopher}, “one to hear the voice of poetry in the conversation of mankind.” Kaaren Harper is founder of Layneau, an atelier with an internation- al client base including members of the demographic. Noting that beauty and strength come from self-love which ultimately fuels quality design, she channels the belief that dressing is as much an act of art as it is of mutual respect.
The 10 largest ultra wealth market countries are all located across three regions, with four in Europe, four in Asia and two in North America. The world’s leading ultra wealth region, the United States, increased by 11.9% in 2023. #1 City: New York (16,630) Reflecting its status as the world’s largest UHNW market, the US accounted for six of the top 10 cities: New York (1) 16,630; Los Angeles (3) 8,955; San Francisco (5) 6,405; Chicago (7) 5,725; Washington DC (9) 4,950; and Dallas (10) 4,875. By 2028, the report forecasts the global ultra wealthy population to total 587,650 people, an increase of 161,320 on 2023 and an additional $19trn of newly created wealth. North America will continue to account for the largest regional share of the global UHNW population in 2028, seeing a slight rise to 39%. A recent trend in the US has been the relocation of some corporates and wealthy individuals from the more traditional wealth hubs to cities in Texas and Florida, partly for tax purposes. However, both Los Angeles and San Francisco, the latter with one of the highest densities of UHNW individu- als of any global city, recorded double-digit gains in their respective ultra wealthy populations in 2023. One standout trend over the next five years is expected to be a steady rise in the share of the global UHNW population residing in the world’s major cities. By 2028, we forecast that almost 42% of the ultra wealthy class will be based in one of the top 50 UHNW cities, up from a 38% share in 2015. 6.7% of the global UNHW population are sole inheritors .* Philanthropy is the most common interest for all three UHNW archetypes, and stands out particularly among inheritors. Sports is the second most popular interest for all groups, only just behind philanthropy for entrepre- neurs and executives.* At 147,950 individuals, the US is home to just over a third of the global UHNW class. Tech-led capital market gains and a standout economic performance among its developed-market peers were the main drivers, overshadowing slight currency weakness and heightened political instability. *2023 World Ultra Wealth Report data Source: Wealth-X, an Altrata company (2024) Special thanks to our partners at Wealth-X. The full report is available at: www.wealthx.com/reports
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