What is now common for the wealthy will soon be pure history, a new Wealth X report forecasts.
The report, titled “Decades of Wealth: The next ten years in wealth and luxury”, explores the luxury industry in selected regions, bringing out highlights from their overview and stating forecasts. Currently, it is suggesting that we are entering a new year, which it calls “India’s Decade.”
“Over the past year, the rise in Indian wealth and the number of wealthy has been impressive – the number of millionaires climbed up from 196,000 to 250,000, an increase of 27 per cent,” the report stated, forecasting the number of millionaires in India to reach nearly 437,000 by 2018 – and then double by 2023.
Naturally, with this wealth comes an increase the demand and consumption of luxury goods and services.
However, the forecasted increase in wealth creation, consumption and expression would not be exposed to major societal controversies, nor would it be “hampered by social inequality or austerity agendas as has been the case in Brazil and China”, the report forecasts. This is due to the long-standing gaps in income and societal castes, which are regarded as more normal in the Asian country than elsewhere.
From a regional perspective, the past decade saw a steady decrease in inherited wealth or “old money” in developed, mostly western nations, the report noted, stating that this decline “has been accelerated by greater life expectancy, and lower and lower interest rates, the wealthy require more of their wealth to see them through retirement – with less to pass on.”
However, Asia is led by a different phenomenon. In the region, “most of the wealth is new. We will soon see it being passed on to the next generation for the first time”, the report added.
Not to forget about important regions, Wealth X shared its forecasts on the industry of luxury in other crucial markets, forecasts that tie with current new headlines.
Iran and six world powers finally signed a deal to curb Iran’s uranium enrichment in return for sanctions that have isolated and pressured the country’s economy largely being lifted.
Now the Iranian market will start opening up and receiving international brands from different business industries, which have been anxiously waiting tap into the Iranian market.
Wealth X expects Iran to undergo “rapid economic resurgence once political and economic reforms have taken place”, suggesting that such reforms would “inspire a latent cosmopolitan and educated middle-class who have the potential to broaden the country’s horizons.”
Meanwhile in Africa, researchers reveal that the growth of wealth will continue “at an impressive trajectory of over ten per cent per annum”, especially in South Africa, Nigeria and Kenya.
In addition to the region being rich in natural resources, the report cited an increased focus of technological innovation here and forecast its young, entrepreneurial population to be the driving factors that “could see the continent develop in a different and more accelerated way than other emerging economies have over the past decade”.
By 2040, WealthX forecasts the number of Africa’s ultra high net worth (UHNW) individuals to quadruple and reach more than 10,500 individuals.