Tuesday, November 29, 2011

New Money in the Luxury Goods Market

Today it's not only the high net worth (HNW) individuals or the even the ultra high net-worth (UNHW) investors who have a corner on the luxury market. The newest category of nouveau riche are the innovative and cutting edge entrepreneurs who have worked long into the wee hours, given up quality family time and invested their whole selves into an idea or product that they helped develop. They are the partners and employees in Silicon Valley start-ups who will be lawfully allowed to sell their company stocks for cash in the near future. When a firm goes public, shares held previously by employees or investors are "locked" for a period of time. That time period is about to expire for many profitable start-ups including Pandora Inc, Linkedin Corp and Zynga Inc. With a sudden influx of ready cash, wealth managers and investment professionals expect the luxury market to be flooded with new demands for high-quality products.


UK Luxury Market
That's in the Silicon Valley, but the luxury market in the UK isn't far behind. The results of the luxury market research carried out by Walpole predicts that by the year 2015 the luxury sector in the UK will grow by 57%, or £9.4 billion in real terms. But we don't have to wait as that sector is expected to increase by 10% this year.

What's the connection between the newly rich in America and the rise in demand for luxury items in the UK? In a single word, it's tourism, since more than £1 in £4 spent on UK  luxury brands come from visitors. According to James Lawson, of Ledbury Research, the peaks in luxury demand in 2007 was related to conspicuous consumption, whereas the new luxury consumers of today are more refined.

Is the UK luxury market ready for an influx of wealthy tourists? This sounds like a win-win situation for everyone. 

10 comments:

  1. It's better to follow the trend so that the gain in the business would be good. But I think the family time would not be sacrificed. There should be enough time for the business and the family.

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  2. I am not sure whether the online luxury market is good or not. However, due to the current economy, perhaps people will be still careful to it. After all, not everybody can afford it.

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  3. Using luxury is a modern trend, everybody likes it even to cut a good figure in front others.But the current economy may encourage the public to go fot loan. Yes tourism encourages progress.

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  4. It could be a "pot of gold" for marketers. As we all know that US luxury good market make a comeback and it's sound pretty promising in UK too. This is another great marketing strategy knowing that luxury market is burgeoning and soon globalizing.

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  5. It would be a great idea to build a luxury business specially if it is in demand. But a good, and new quality product must be created because people keeps on changing what they really want. I think UK luxury market can handle this situations.

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  6. luxury goods markets is inetresting. it may give much money. but we should have make good planning when do it

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  7. Every time there are new challenges and new opportunities, this time luxury market is coming for others then HNW, UK Luxury Market is working well then markets of other countries will also join shortly.

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  8. Luxury good market is interesting. We can earn more money here. I think if this will become a very good market, other countries will surely follow this trend.

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  9. Tourism can generate a lot of money for the country, this is the best method to get more luxury money, nice article.

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  10. Luxury goods are a trending now. Mostly, wealthy people like to consumed luxury goods. Its interesting but we should go for what people like and affordable because not all people can afford it. Its good for them but not in the consumer because of bad economy.

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