1、GLOBAL WEALTH AND LIFESTYLE REPORT 2020 JANUARY 2020 Luxury once stood for fancy goods, such as handbags or sports cars. Now it has morphed into a broad category that includes services and experiences, from fine dining to new lifestyle trends such as wellness. Behind these developments is an increas

2、e in the wealthy demographic, who are international in their outlook and desire a similar standard of living wherever they are. The basis of this report is a comparison of the prices of various goods and services, from hybrid cars to laser eye surgery, broken down globally, regionally and by item-ty

3、pe. The analysis draws on the Julius Baer Lifestyle Index pioneered in our Wealth Report Asia, and has now expanded to include 28 cities globally. As we delved deeper into patterns of consumer behaviour, a key finding emerged. Baby boomers are passing on their money and the influence of a younger ge

4、neration is being felt one that cares about the planet and knows its consumer power. INTRODUCTION Welcome to Julius Baers inaugural edition of the Global Wealth and Lifestyle Report. In this wide-ranging survey, we examine prices and consumer behaviour in order to understand the world of luxury bett

5、er. We therefore highlight the theme of Conscious Consumption the growing desire among consumers to balance their buying decisions with their social, environmental and political convictions. This began with the millennials, but the baton has definitely been passed down the generations now. Even Gene

6、ration Alpha is getting involved, as I know from personal experience. Material possessions are no longer the ultimate goal. Todays consumers prefer to spend in a more measured, sustainable and responsible way. To this end, we interviewed thought leaders, from chefs to wellness experts, and their ins

7、ights reveal that responsibility and profitability can work hand in hand. I would like to thank the many people who have contributed to this report and hope that it proves informative and enjoyable reading. Nicolas de Skowronski Head Wealth Management Solutions Member of the Executive Board 3 Global

8、 Wealth and Lifestyle Report 2020 This is leading to some obvious effects. Western companies will have to shape their strategies around China. For luxury goods houses, this may mean the introduction of dedicated fashion lines to new store openings. Asian demand is also being felt in the West itself.

9、 For some years, the super-rich have been snapping up trophy assets, from fine art to football clubs. Now the better-off vie to put their children through prestige schools and aspire to own apartments in smart addresses. REGIONAL HIGHLIGHTS ASIA The emergence of vast numbers of newly wealthy Asians

10、over the past decade has had a profound effect on global consumption. In particular, Chinese buyers now dominate purchases across categories, from cars to watches. Many of them are seeking a better quality - or alternative - life to that at home, where rapid economic growth has led to over-crowding

11、and squeezed the supply of quality housing. In addition, they must pay hefty taxes on imported luxuries. Our data shows Asia is the most expensive region in the world, particularly for residential property, being home to six of the ten most expensive cities; and also for luxury cars, with eight of t

12、he ten most expensive cities in our index. Jimmy Lee Head Asia Pacific Member of the Executive Board 4 Global Wealth and Lifestyle Report 2020 On the other hand, Asia provides good value for portable items as well as services. The low cost of labour is an advantage in services, such as hospitality a

13、nd wellness, attracting a global clientele. The outlook, however, is not trouble- free. At the time of writing, the United States (US)-Chinese trade war is causing growth to slow. Sentiment has turned weak and, with the spread of populism, the sudden or increased presence of foreign money is a sourc

14、e of tension in some local markets. A re-set of relations is perhaps inevitable: China cannot sustain high rates of growth indefinitely, nor the US its post-war influence. We do not fear a long trade war as it is in neither sides interest. Businesses will by nature remain pragmatic and try to avoid

15、being caught up. We hope our Global Wealth and Lifestyle Report provides a unique perspective of trends in international lifestyles, where best value lies and what awaits in the coming year. 5 The key trends in luxury consumption included Mexicos continued usurpation of Brazil as the key market outs

16、ide the US, the growth of that areas middle class yet more hesitant expansion among foreign brands as their expectations for this segment slowed. Overall, Latin America is still the next big market for luxury purveyors. It makes up a fraction of the global luxury market. Uneven rates of growth and i

17、ts large geography may however temper prospects. THE AMERICAS 2019 was a year for pause, with the strong dollar and economic slowdown affecting Latin America, while North America saw spending remain steady. The regions well-off have always gone abroad to shop. High tariffs deter shopping at home. Wi

18、thin the US, Miami and New York are the always-popular destinations. Despite that, Latin America is broadening its appeal to domestic and international travellers. There has been a rise in home-grown hospitality brands and, as elsewhere, tastes are changing with a younger generation seeking experien

19、ces rather than status. Beatriz Sanchez Head Americas Member of the Executive Board 6 Global Wealth and Lifestyle Report 2020 The bulk of portable luxury is made up of branded apparel, accessories and beauty products. Leather goods are a favourite buy. In many segments - jewellery in particular - fr

20、agmented local markets are an opportunity for foreign brands to build share through strong distribution and, usually, once a name is established, online sales. The US (and Canada) is clearly a separate market given its level of development. High labour costs make it costly to eat out and entertain,

21、and wedding banquets are by far the most expensive there. Against this, cars are cheaper than almost anywhere else, and the property market deep and varied. We hope you enjoy the read. 7 Over the past two decades, many brands have been integrated into conglomerates as the business of luxury becomes

22、more global and profit-led. Driving this change is the appetite of newly rich countries in Asia. At the same time the perception of what is luxury is being stretched. Properties come to market as branded residences. At the other extreme, branded accessories sell an affordable dream. For the companie

23、s involved, striking the right balance is a delicate business. New brands are now emerging, often in reaction Europe is home to the majority of prestige marques and brand names, from haute couture to palace hotels. People here are familiar with what they represent craft, tradition and the finer thin

24、gs in life. to the ubiquity of established names. Younger consumers want authenticity as much as glamour. Global money follows an established checklist: France for all-round good living; Milan for fashion; and Britain for schooling and prime property. Certain postcodes in London or Paris will always

25、 promise exclusivity. Meanwhile, new approaches to health and lifestyle in the Middle East have boosted the appeal of Dubai as a luxury holiday and wellness destination. Yet Southeast Asia continues to appeal to Europeans, and Thailands leadership in wellness will be hard to prise away. Yves Robert-

26、Charrue Head Switzerland twelve in Europe, Middle East and Africa (EMEA) and six in the Americas. Asia is home to the four most expensive cities (Hong Kong, Shanghai, Tokyo and Singapore) and the least expensive, Mumbai, in 28th place. Although New York is notably expensive for services and consumab

27、les, on a price-weighted basis it comes in 4th place, given its relatively inexpensive high- ticket items such as cars. Meanwhile, European cities tend to offer reasonable value. Europes best-value cities for luxury are Barcelona in 24th place and Frankfurt in 26th, whereas London (in 7th place) is

28、the most expensive city in EMEA. EXECUTIVE SUMMARY Julius Baers first Global Wealth and Lifestyle Report finds that some of the most expensive cities in the world for high-end living are in Asia. But even there you will find a huge variation in prices, depending on what it is that you seek. CATEGORI

29、ES The report divides the lifestyle items into five categories: 12 Global Wealth and Lifestyle Report 2020 AVERAGE RANKING OF ALL CITIES Hong Kong Shanghai Tokyo New York Singapore Los Angeles London 1 2 3 4 5 6 7 Singapore Los Angeles London Taipei Zurich Monaco Bangkok Paris Miami Vienna Sydney Ri

30、o de Janeiro Dubai Mexico City Milan Manila Vancouver Jakarta Moscow Barcelona Istanbul Frankfurt Johannesburg Mumbai 8 9 10 11 12 13 14 Paris Miami Vienna Sydney Rio de Janeiro Dubai Mexico City Milan Manila Vancouver Jakarta Moscow Barcelona Istanbul Frankfurt Johannesburg Mumbai 12 13 14 15 16 17

31、 18 19 20 21 Milan Manila Vancouver Jakarta Moscow Barcelona Istanbul Frankfurt Johannesburg Mumbai 19 20 21 22 23 24 25 26 27 28 most expensive cityleast expensive city 13 HOME Since the financial crisis, a combination of low interest rates and a flight to quality has caused real-estate prices to s

32、urge in the global gateway cities of London, New York and Hong Kong. In the past year or so, demand has spread to secondary locations where better value is available, such as Munich, Manila and Miami, and also new areas of major cities. Among second-tier cities, beneficiaries include Frankfurt and P

33、aris, as the financial community hedges its bets on Brexit and the possible diminution of Londons leadership within Europe. Barcelona is on the up thanks to its broad appeal as a business, leisure and student city. In the US, Miami continues to move upmarket, with long-standing popularity among Lati

34、n American buyers. In Asian capitals, tight supply and high taxes mean prices are already elevated. EXPERIENTIAL Younger consumers are increasingly into experiential luxury, which could prove a boon for industries such as tourism, travel and dining. Against this, a growing concern for the environmen

35、t is changing assumptions about what people want. Food that is local and ethically sourced may command higher prices in the future. Long-haul flights may be less tolerated by those concerned with pollution and their own carbon footprint. For connoisseurs of fine dining and exquisite wine, Paris rema

36、ins one of the most expensive cities. But Jakarta and Hong Kong offer the best value for a bottle of vin rouge. The Chinese now drive global demand for luxury cars. Younger buyers and women make up a significant share. While overall growth rates have been stalling recently, the industry is placing i

37、ts hopes on more customised or limited run models for the well heeled. Meanwhile, advances in electric technology promise to revolutionise personal transport. But without more efficient batteries and a proper recharging infrastructure, electric cars will likely remain premium products. Mass manufact

38、urers promise their high-end models will have electric- powered options in the next couple of years. European marques are also betting on hybrid or fully electric powertrains in the family cars of the future a clear threat to pioneer Tesla. In terms of pricing, the Americas offer the best value for

39、luxury cars, given low tax rates, followed by EMEA. Asia lies a distant third because of its higher rates of taxation. 14 Global Wealth and Lifestyle Report 2020 FASHION Taxes are steep on high-end goods in the developing world. For example, in the world of jewellery, the same item in Rio de Janeiro

40、 can cost twice as much as in North America or Europe because of local tax. For shoppers in continental Europe, Zurich and Frankfurt offer the best value for fine apparel and jewellery. Taxes are not applied to watches in Switzerland, whereas in Frankfurt, the ease with which a small wealthy populat

41、ion can shop elsewhere helps keep prices down. Asia is a major buyer of watches, with China constituting about a third of the market1. But all is not smooth. The fashion industry is facing a rethink as fickle buyers question their needs and increasingly the waste involved of unsold clothes going to

42、landfill. A number of luxury brands are now experimenting with various upcycled ranges the practice of taking old or discarded clothing or other materials and using them to create new items. Meanwhile, brands are courting their most loyal customers with advanced sales and insider exclusives akin to

43、membership of a club. FAMILY Education has become big business, especially in the English- speaking countries. More than 100,000 mainland Chinese are currently enrolled in post-graduate programmes at United Kingdom (UK) universities2. Australia is a popular rival destination. The value that Asians,

44、most noticeably, place on schooling means that even less well-off couples will have to save to send their children abroad. Many institutions, including traditional English boarding schools, have set up campuses to meet this need within Asia, promising the best of both worlds. For the most elite scho

45、ols, competition for places is intense. But it is academic excellence that will get you in assuming you have the money. Boarding fees at prestigious institutions such as Eton in the UK , Oxford University and Harvard Business School have all experienced significant price inflation over many years. B

46、y contrast, the next stage of ones life might be a lot cheaper. The headline cost of wedding banquets has been rising only modestly. Anecdotally, the extravagance of the monied has inspired more couples to splash out on their big day. WELLNESS Today, a whole industry exists to attend to personal wel

47、l-being that is focused on health, diet, exercise and spiritual improvement. The wellness business is growing at around 6% per year3. A number of Asian cities have positioned themselves as upmarket destinations for wellness breaks, while mainstream leisure and tourism providers across the US and EME

48、A are following rapidly. The best facilities are usually dedicated venues, often spas. Some incorporate sophisticated medical programmes; others have a specific purpose, from detox to yoga or combine disciplines for holistic counselling. Meanwhile, medical tourism is becoming a growth phenomenon. Br

49、azil attracts business from across Latin America, while the reputation of Thailand and South Korea draws patients from across the world. 1 Statista Consumer Market Outlook Luxury Goods Report 2019 Luxury Watches others do not. In Europe, the reputation of France or Italy rests on the bounty of the soil and an insistence on quality. In Asia, a love of food seems ingrained. Have you eaten yet? is a salutation as common as How are you? in the West. It is partly in the industrial countries of the West, such