The Plum Wealth Report

Top four features that determine the malls where the wealthy shop

2008-09-23T10:29:00.009-04:00

Want wealthy consumers to frequent your store? It may depend on what mall you're in. These are the top four features that determine the malls where the wealthy shop:

1. A proliferation of high-end retailers
Two-thirds of wealthy shoppers say that the presence of high-end retailers like Neiman Marcus determine which malls they frequent.

2. Smaller service-oriented stores
47% of the wealthy say they need banks at the mall, and 40% say jewelry repair stores draw them in.

3. A mix of indoor/outdoor shopping
27 percent of the wealthy, especially wealthy consumers younger than 55, say they prefer the mix of indoor and outdoor shopping at a "lifestyle center" with landscaped grounds, park benches, fountains and artwork.

4. Good security
Good security at the mall is important to the wealthy, especially wealthy women (3/4 cited this as "important" in their selection of a mall). They care about placement of call-for-aid boxes in the mall and the parking facility, the ability to dial *88 from any pay phone at the mall and connect to security and electronic signs in parking garages directing shoppers to available parking spaces.

Source: The Luxury Institute

The Art Market Stays Strong: Record Sales for Hirst's Solo Art Exhibition

2008-09-16T17:33:00.003-04:00

Breaking new ground and old traditions, British artist Damien Hirst raised $127 million dollars with his two day auction entitled Beautiful Inside My Head Forever - a record sale for a solo art auction.

The auction results revealed a strong art buying market, despite the struggling economy.

Wealthy Gen Xers give more to charity than other generations

2008-09-11T19:35:00.002-04:00

According to a survey from Northern Trust, which polled 1,000 households with investible assets of at least $1 million, Generation X millionaire households (those ages 28 to 42) gave away more money than Baby Boomers (ages 43 to 61) or Silent Generationers (ages 62 to 77). GenXers gave an average of $20,000 in 2006, compared to $10,000 for the older millionaire households.

Lieber, Hermes, Tod's and Jimmy Choo rated most prestigious handbags by high net worth consumers

2008-09-11T19:30:00.003-04:00

For the second year, high net-worth consumers rated Judith Leiber the most prestigious luxury handbag brand in the 2009 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute (www.LuxuryInstitute.com). Hermes and Tod's tied for second, Jimmy Choo was rated third.

"As high net-worth consumers become more discerning about their investments in luxury goods, the coveted luxury handbag category players are raising the bar in uniqueness, exclusivity and artistic value to satisfy consumer demand for true luxury," said Milton Pedraza, CEO of the Luxury Institute.

The Wealthy Keep Spending Big on Collectible Cars

2008-09-02T22:36:00.004-04:00

The annual Pebble Beach automobile auction, which follows the Concourse d’Elegance, is one of the elite car auctions in the world - and a valuable barometer for the collectible-car market.

This year’s auction brought in $64.2 million, topping last year’s tally of $60 million. The auction saw the most expensive car ever auctioned in the United States. Twenty cars sold for more than $1 million–more than triple the number in 2006. Five cars sold for more than $2 million.

The number of price records shattered suggests that the rare-cars business remains strong.

Source: Wall Street Journal Wealth Report

Philanthropic Giving Expected to Increase in 2008

2008-08-23T11:12:00.003-04:00

Charitable giving by the rich is expected to increase this year compared to 2007, according to the
Crown Philanthropic Advisors, a New York firm that sells technology platforms for donor-advised funds.

Crown's survey of donors and advisers showed that the wealthy–those with $2 million or more in investable assets–are unlikely to cut back on charitable giving this year.

Source: Wall Street Journal Wealth Report

Wealthy Consumers Rate LuxuryRealEstate.com Most Prestigious Real Estate Website

2008-08-08T14:04:00.003-04:00

High net-worth consumers rated Luxuryrealestate.com the most prestigious real estate website in the 2008 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute (www.LuxuryInstitute.com). Weichertcapital.com and Realtor.com rank second and third respectively.

Good News for the Economy: The Pace of the Decline in Luxury Consumer Spending Is Slowing

2008-08-04T20:38:00.004-04:00

While affluent consumers continue to conserve their cash and hold back on indulging in luxury extravagances, the decline in luxury consumer spending is likely to be leveling off, according to the latest poll of affluent consumer confidence conducted by Unity Marketing (average income $204,800; age 45 years; and men 36 percent/women 64 percent). To learn more, please click the headline of this blog post.

Sotheby's, Christie's Rated Most Prestigious Real Estate Companies by Luxury Consumers

2008-08-04T20:30:00.003-04:00

High net-worth consumers rated Sotheby's International Realty the most prestigious real estate company in the 2008 Luxury Brand Status Index survey by the Luxury Institute (www.LuxuryInstitute.com). Respondents who would recommend Sotheby's International Realty say they have "high-end properties," "exclusive listings," "great customer service," and an "excellent reputation." Christie's Great Estates was rated a very close second; Corcoran group was rated third.

Despite Economic Downturn, Hedge Funds Remain Popular With the Wealthy

2008-07-29T19:11:00.004-04:00

A Bank of America survey found that hedge funds are still popular with the rich.

The survey, of 400 clients with $3 million or more in investible assets, found that more than half of those with hedge-fund investments were “satisfied” with the funds’ performance.

According to Hedge Fund Research, the hedge-fund industry was down 3.2% for the month through July 24. That’s the worst July performance since the research firm starting tracking the business in 1990, and the worst monthly performance since 2000.

Yet stocks have fared even worse. The S&P is down 16% for the year, and the Dow is down about the same.

The survey also found that investors who had held hedge funds the longest were the most satisfied. Those who had been investing in hedge funds for 10 years or more were twice as likely as those with less experience to be “extremely satisfied."

Excerpted from the Wall Street Journal Wealth Report

Most Successful Fundraiser Ever on Martha's Vineyard

2008-07-29T11:59:00.002-04:00

There are some places in the nation that seem to be relatively immune to the economic downturns - resort destination Martha's Vineyard, for one. A recent telethon for the Island Affordable Housing Fund broke all Vineyard fundraising records for money banked from a single event. The telethon, underwritten in part by Plum TV, raised over $1 million for the fund.

Wealthy Consumers Turn to Web for Education About Luxury Products

2008-07-18T16:13:00.002-04:00

Wealthy consumers are turning to the Web for much of their education on potential high-end purchases, according to a Luxury Institute survey of Americans with annual incomes of at least $150,000.

64% of the wealthy go directly to the company's website for information on the luxury good/ service; 57% solicit input from friends and family. Ratings and review sites attract 38% of wealthy consumers.

La Cornue, Bertazzoni and Viking Ranked Most Prestigious Appliance Brands

2008-07-08T15:37:00.004-04:00

High net worth consumers rated La Cornue the most prestigious luxury appliance brand in the 2008 Luxury Brand Status Index study completed by the Luxury Institute. Here are the top 10 rankings:

1. La Cornue

2. Bertazzoni

3. Viking

4. Wolf

5. Sub-Zero

6. Gaggenau

7. AGA

8. Thermador

9. Bosch

10. U-Line

The Wealthy Plan to Spend Even More in 2008 on Unique Learning Experiences

2008-06-22T21:09:00.004-04:00

The wealthy seek unique experiences, such as a vacation, a class or an event with prominent cultural leaders, according to a new study by American Express of their U.K. Centurion card holders (i.e. the super-rich).

The study found that 46% of the wealthy plan to spend more in 2008 on new learning experiences. That exceeded planned spending on technology products, home furnishings, charities and fashion.

Culinary luxury is a top sub-sector of the new experience economy: 85% plan to travel abroad for a memorable meal.

Source: Wall Street Journal Wealth Report

Wynn, Bellagio and Venetian Ranked Most Prestigious Casinos by High Net Worth Consumers

2008-06-13T17:02:00.002-04:00

High net-worth consumers rated Wynn the most prestigious luxury casino in the 2008 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute. Respondents noted that the casino had a great golf course and was very comfortable and sophisticated. The Bellagio was ranked second, the Venetian third.

Researched by Kara Davey

Cities Where Workers Earn the Most

2008-06-12T15:58:00.007-04:00

Want to earn more money? These are the top 5 cities where workers earn the most money:

1. Copenhagen
2. Oslo
3. Zurich
4. Geneva
5. Dublin

Not until the 13th spot on the list do we find a U.S. city - New York City.

Source: UBS Prices and Earnings 2008; Researched by Alicia Roman

Wealthy Consumers Rate Top Luxury Fashion Brands

2008-06-05T23:15:00.004-04:00

Top 3 Men's Luxury Fashion Brands: Ermenegildo Zegna, Armani and Brioni
Top 3 Women's Luxury Fashion Brands: Bottega Veneta, Hermes and Valentino

Market for Used Jets Booming Despite Economic Downturn

2008-06-02T23:02:00.005-04:00

The waiting list for buying Gulfstream's new jet model is 10+ years and growing, despite the shaky economy. What's a jet-starved consumer to do? Buy a used one, for a lot more than what a new one costs.

A brand new Gulfstream G450 sells for about $40 million, but a used one can now fetch $4 million to $5 million more than that.

Why? Because the waiting list for buying a new jet is so long that the impatient buyer will pay more to have the jet in their hands ASAP. That’s also led to a new trade in jet flipping, where people sell their waiting “slots” for new planes for big profits.

Source: Wall Street Journal Wealth Report, May 2008

40% of Super-Wealthy Consumers Plan to Purchase a Home in the Next Year

2008-06-01T20:28:00.006-04:00

Good news for those who work in the luxury housing market. Of consumers earning $500,000 or more:

40% say they plan to purchase a home in the next 12 months
33% say their purchase would be a second home
25% would be buying home number three

Source: Harrison Group, 2007

Economic Downturn Has Little Effect on the Super-Wealthy

2008-06-01T20:19:00.003-04:00

The top 1% of Americans control 33% of the nation's wealth - that's $17 trillion in wealth, which is greater than the GDPs of Japan, Germany, the U.K. and France combined.

This group has so much money that it is "not really affected by the economic downturn."

Source: ABC News, May 16, 2008

The Wealth Market Continues to Grow

2008-05-29T21:27:00.004-04:00

The population of affluent Americans -- defined as those with household income and income producing assets (IPA) in excess of $100,000 -- continues to grow and now comprises 19 percent of all U.S. households, according to a recent Nielsen Company analysis.

There are now 22 million U.S. households that earn $100,000 or more
This is a 23 percent increase in affluent households from a decade ago after adjusting for inflation
These affluent American households control $22 trillion in assets

Source: Nielson Company, May 2008

Luxury Hotel Market Remains Strong Despite Economic Downturn

2008-05-29T21:11:00.004-04:00

Despite the current downturn in the U.S. economy that includes a drop in overall hotel occupancy and revenue growth, luxury hotels continue to show strength, according to a new study by Market Matrix.

Even though luxury hotels have increased their prices, customer satisfaction with these high-priced hotels has increased.
Other positive indicators for luxury hotels: reduced price sensitivity and improved perceptions of value among luxury hotel consumers.
The luxury brands showing the biggest gains in the study were Starwood's The Luxury Collection (+3.7), Grand Hyatt (+3.6), and Intercontinental (+2.7).

Sotheby's Has Most Lucrative Auction in History This Week

2008-05-27T21:31:00.004-04:00

Sotheby's spring contemporary art auction was the most lucrative in the company's history with sales of $362 million, including a record $86.3 million for a 1976 Francis Bacon triptych that Sotheby's expected to sell for $16 million or less.

Source: CNN Money

Inside the Yachting Industry

2008-05-26T20:27:00.005-04:00

Some key findings from Camper & Nicholsons (Super) Yachting Index, 2008:

Orders for superyachts - defined here as yachts over 24m - grew 18% from 2007 to 2008
60% of all yacht charters come from American and British consumers
56% of all yacht charters are bound for the Western Mediterranean, 15% to the Caribbean and 14% to Florida

Spending Trends Among Wealthy Women

2008-05-23T12:45:00.005-04:00

Married wealthy women (wealthy is defined as HHI $150K+) make an average of 64% of a family's purchase decisions. These women make:

68% of decisions on home appliances
61% of decisions on vacations
48% of decisions on home improvement purchases
22% of investment decisions
31% of real estate decisions

72% of wealthy women work on at least a part-time basis and 54% full-time. 60% earn at least $100,000 a year. The median annual income of working wealthy women is $124,000. 33% hold jobs at the vice-president level or higher.

Source: The Luxury Institute