Despite slowing global demand and consumption, luxury industry executives are optimistic about the first quarter of 2014, with nearly 80% confident they will see an increase in revenue from ultra high net worth (UHNW) individuals during the period, according to the inaugural Wealth-X Luxury Sentiment Survey Report.
More than 30% of those polled expect revenue to rise by more than 10% in Q1 2014, the report shows.
Below are other key findings from the report:
- 71% indicated they were likely to expand into new markets;
- 77% saw increased UHNW customer enquiries;
- 64% believed that customers will make more purchases in Q1 2014;
- 76% said their clients were mostly domestic, not tourists;
- Asia and North America were selected by participants as the locations that are most likely to have the fastest revenue growth for Q1 2014;
- 67% expect that Asia will contribute the largest Q1 2014 growth in the hospitality and services sector;
- 87% expect revenue growth in the yacht and private aviation sectors;
- 50% indicated that more than half of their total marketing budget goes to UHNW marketing;
- 55% plan to start targeting UHNW individuals or increase existing targeting of UHNW clients;
- 74% said they targeted UHNW clients through events.
The electronic survey conducted in January 2014 polled global senior luxury executives from various luxury sub-sectors.
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