British department store Harrods has introduced the Harrods Residence, a private members' club in Shanghai, featuring exclusive perks such as access to Gordon Ramsay's first restaurant in China, a selection of rare whiskies and private jet services, with membership fees starting at approximately 20,000 euros ($21,700). Image: Harrods
The number of millionaires worldwide is set to increase significantly by 2027, with China leading at a growth rate of 112 percent.
The finding, from Agility Research & Strategy’s TrendLens 2024 Global Millionaire study completed in March, showed the resilience and expansion of global wealth. Agility interviewed more than 750 high-net-worth individuals across China, Japan, India, United States and the United Kingdom.
Here are the key takeaways from the study that was originally presented April 29 by Agility Research & Strategy CEO Amrita Banta at the Walpole British Luxury Summit in London:
Rapid growth in millionaire populations: Despite varying economic policies, the number of millionaires is set to increase significantly by 2027, with China leading at a growth rate of 112 percent, underscoring the resilience and expansion of global wealth.
Spending outlook for luxury goods: High-net-worth individuals across major markets such as the U.S, China, U.K., Japan and India are optimistic about their future income and investment values, with a notable percentage expecting an increase in 2024.
However, the state of the economy is impacting consumers differently, as the study revealed.
For example, optimism is much higher than pre-COVID level for India, Japan and U.S.
Also, Chinese HNWIs remain cautious, and their overall optimism is still much lower than pre-COVID level.
| CHINA | USA | INDIA | JAPAN | |||||
| W1 '20 (pre-covid) | 2024 | W1 '20 (pre-covid) | 2024 | W1 '20 (pre-covid) | 2024 | W1 '20 (pre-covid) | 2024 | |
| Disposable income | 82% | 61% | 48% | 47% | 58% | 80% | 31% | 46% |
| Luxury spends - products | 74% | 50% | 24% | 50% | 65% | 87% | 30% | 34% |
| Leisure travel spends | 77% | 58% | 54% | 60% | 71% | 82% | 47% | 58% |
Luxury shopping preferences: High-net-worth consumers are planning to increase spending across key luxury categories, with particular emphasis on hotels, airline tickets and fashion clothing, as revealed in their intended purchasing behavior over the next six months, the study found.
Chinese HNWIs will spend more on leisure travel versus luxury products in next 12 months.
| CHINA | |||
| W1 '20 (pre-covid) | 2023 | 2024 | |
| Disposable income | 82% | 60% | 61% |
| Luxury spends - products | 74% | 55% | 50% |
| Leisure travel spends | 77% | 42% | 58% |
Luxury brand membership value: A significant share of millionaires in key markets value being members of luxury VIP programs, highlighting the importance of tailored information, exclusive offers and personal connections to luxury brands.
Across the five markets – China, U.S., India, Japan and the U.K. – getting priority access to events is mentioned as one of the most valuable benefits from a luxury brand VIC program, according to Agility.
In particular, access to master class events where experts share their knowledge to these VICs are seen as most attractive, followed by special dinners, private shopping and wines and spirits tasting sessions.
Luxury travel and shopping destinations: High-net-worth individuals show a strong preference for international travel, with notable destinations for luxury shopping including Europe, France and the U.S., per the report.
Out of the five markets surveyed, India and China show the highest percentage of luxury shopping done internationally, consolidating the last few years trend which saw Chinese and Indian HNWIs combining travel with luxury shopping.