Beverly Hills Conference and Visitors Bureau (BHCVB) today launched a global trend report, The Future of Luxury. Authored by trend forecast agency, IN(K), it examines the current landscape of the global luxury sector, offers an in-depth analysis of the high-net-worth market, and forecasts the newest luxury trends.
By examining the macro-economic landscape, the report identifies the top 10 cities by their population of ultra-high net worth individuals (UHNWIs), analysing their different demographics and spending patterns, and compares to Beverly Hills. The Future of Luxury report looks at who is consuming luxury goods and services, and examines the different spending habits across multiple generations, in particular the increasingly influential millennials.
The report shows that London has the highest UHNW spend and will continue to surge given its central location, time zone and hub airport, benefiting from the increasing city hopping millennial. Tokyo, second on the list of top 10 cities of UHNWIs, is seeing a decrease in its super-rich in comparison to its counterparts. However, the value of individuality and exclusivity has become more mainstream, due to the increasing Japanese custom of gifting.
The research indicates that luxury is currently at the epicentre of LUXURY 2.0 – the digitalisation of exclusivity where traditional luxury brands are increasing their digital presence, appealing to a more digitally savvy audience. However, findings suggest that luxury will come full circle. Whilst acknowledging the importance of the digital offer, luxury consumers will seek out more original and authentic experiences that can’t be seen or bought online. Modern day purveyors must fuse the digital with the physical to create more immersive brand experiences and consumer journeys.