Luxury Industry Bullish On Outlook For 2015, Wealth-X Survey Shows
The level of optimism among professionals in the global luxury industry has returned to 100.
The level of optimism among professionals in the global luxury industry has returned to 100, the same level of optimism seen at the start of 2014, according to the latest instalment of the Wealth-X Luxury Sentiment Survey Report released today.
The Luxury Industry Sentiment Index (LISI) declined from its peak in 2014 of 108, seen in Q4 due to high expectations for the holiday shopping season, indicating that the luxury industry is cautiously optimistic for the coming quarter. The industry’s outlook for the whole year was more optimistic, with 92% of respondents stating they expect to see an increase in revenue over the course of 2015, while less than 75% expect to see revenue growth in the first quarter.
The quarterly Wealth-X Luxury Sentiment Survey polls senior-level executives from various sectors in the luxury industry, including watches and jewellery, art and collectibles, hospitality and services, planes and helicopters, and yachting and boating. In addition to gauging the level of optimism in the industry, the report examines how the industry engages with ultra high net worth (UHNW) clients, specifically through affinity partnerships.
Below are some highlights from the latest edition of the Wealth-X Luxury Sentiment Survey Report:
- Competition was the biggest obstacle in Q4 2014, but respondents were still optimistic regarding their long-term performance and prospects
- 90% of respondents have plans to expand throughout 2015, with product launches being the preferred method
- 72% of respondents have used affinity partnerships to target UHNW clients
- 78% of respondents who used affinity partnerships felt that these were particularly helpful in expanding their customer base
- 68% of respondents thought that these affinity partners help increase the prestige/awareness of their companies
- 61% of respondents typically used one or two affinity partners at any one time, and 53% focused on long-term partnerships as opposed to one-time events
- 78% of respondents plan on increasing their use of affinity partners in the future.
Wealth-X is the world’s leading ultra high net worth (UHNW) intelligence and prospecting firm with the largest collection of curated research on UHNW individuals, defined as those with net assets of US$30 million and above. The firm’s Wealth-X Professional solution is the standard for banking, luxury marketing and not-for-profit professionals working with the ultra affluent. Headquartered in Singapore, Wealth-X has 13 offices across five continents.