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The first whims a millionaire gives himself

2021-07-25T04:09:10.414Z

There are more and more rich people and the forecast is that this group will grow in the coming years. They seek above all services and products that differentiate them from other mortals, and flee from ostentation



There are more and more rich people in the world.

In 2020 the world number of millionaires,

people with more than a million dollars, increased by 5.2 million

, reaching a collective 56.1 million.

Wealth has almost quadrupled, from $ 41.5 trillion to $ 191.6 trillion in 2020, according to data from the latest Global Wealth Report 2021, prepared by the Credit Suisse Research Institute.

In Spain, for the first time,

people who have more than a million dollars last year amounted to 1,147,000

people, 2% of the world's millionaires, and the forecast is that in 2025 the wealth will reach 1,800 .000 Spaniards.

The trend is for the number of millionaires to increase across the planet, and world wealth to increase by 39% over the next five years, reaching $ 583 trillion in 2025.

Before the time comes when these great fortunes are launched into space as Amazon founder

Jeff Bezos

did this week

, with a fortune of 209,000 million dollars, they still have a way to go to enter the exclusive world of the wealthy .

Because, according to Pedro Rey, ESADE professor of economic behavior, one of the first things that "the rich do when it comes to consuming is to signal their identity as millionaires", and he clarifies that consuming luxury is no longer a sign of status because middle class can also agree to buy an iPhone, designer clothes or a Louis Vuitton handbag. “Now the very rich, very rich, like Zuckerberg [Facebook founder], wear sandals and a T-shirt, and avoid those signs that were used before to show that they had reached a certain status. They are standard bearers, to a certain extent, of the non-logo movement, the one that flees from the anagrams of the big luxury brands.

“Now they consume services, health or training.

They take their children to elite colleges and universities, they buy private insurance, they eat a very select diet, because living better is what distinguishes them from the rest, ”continues Rey.

This trend is also observed in the purchase of vehicles, where, for example, Tesla has a great acceptance among those who sign up or are aware of the environment and the salvation of the planet.

They take their children to elite colleges and universities, buy private insurance, eat a select diet, because living better distinguishes them from the rest

In fact, the president of Ferrari,

John Elkann

has announced to its shareholders that the launch of its first fully electric car will be presented in 2025. Furthermore, the Italian team's priority is to have 60% of the hybrid car fleet by 2022. Another of its objectives is to attract a new profile of client, coming from the millennial collective and settled mainly in Asia. Of the 9,119 cars sold last year, 485 were shipped in China, whose figure the previous year in the Chinese market, prior to the pandemic, was 836 out of a total of 10,132 units. "In Asia, the wealth is still ostentatious, they buy jewelry, watchmaking, recognized brands such as Rolex and Omega, and high-end cars, with brands such as Ferrari or Porsche, since it is important to see that wealth," says Susana Campuzano,managing partner of Luxury Advise and director of IE's luxury universe strategic management and direction program, who ensures that more and more millennials are reaching wealth through cryptocurrencies.

Jeff Bezos, after his trip to space this week.

Getty Images

“In terms of preferences, there is a shift in the weight from the product to the experience, and towards concepts such as sustainability, discovery, such as the space travel that Bezos has just done.

All this will increase, because a luxury product is acquired, but an experience is a challenge, and what prevails is evasion, the experiences ", adds Campuzano, who also points out as a trend, in addition to the most exclusive summer destinations or the acquisition of unique real estate, the enjoyment of the so-called luxury toys, such as yachts, jet skis, airplanes ...

Because there is a big difference between those who come to this situation through new money, and not through an inheritance, where there are three main profiles, such as entrepreneurs, managers and athletes, according to Felipe Romero, partner of the consulting firm The Cocktail.

In this sense, it identifies several needs more than products or services.

In the first place, security or protection, since they have reached a level of life that they want to protect, over continuing to expand it.

"When new wealth is reached, the aversion to the loss of what has been earned weighs more than the ambition to earn more, which leads them to want to consume more conservative financial products," says Romero, who highlights this attitude of "defending the land gained ”.

Another relevant element is

social validation

, becoming a benchmark: no longer from the recognition of its success via consumption, which would be recognition without the social label, and which was perhaps the model of 15 or 20 years ago, and it was concretized in some conspicuous consumption. "What we see here are initiatives such as writing, making donations, telling their success story or undertaking social initiatives," adds Romero.

A clear example is that of

Bill Gates

, who has now achieved more social relevance with the Bill and Melinda Gates Foundation than during his time at Microsoft. Or Bezos himself, who this week as soon as he got off the rocket with which he took a ride through space, felt generous and donated 100 million dollars to the NGO World Central Kitchen, of the Spanish chef José Andrés, and other millions civil rights activist and attorney Van Jones.

This is called, explains the Esade professor, meeting a psychological need, "the importance of feeling different, and that others know what is being done," explains Rey, who qualifies donating money as another form of consumption, "since it means that this person can afford it, and has the psychological need to point out the causes that interest him."

Most, upon arriving at this select club, have undergone a great change in their lives. They have not evolved at the same rate as their usual environment, and to a certain extent, Romero explains, there is an upward declassification, and this leads them to demand themselves and to train in other disciplines, such as reading, philosophy or opera, something that provide a patina of culture and allow them to establish new social relationships. The acquisition of art is usually a way of entry and acceptance within the great fortunes. "Art knowledge is often a status symbol and there are more and more initiatives from emerging young artist platforms," ​​Campuzano points out.

The Esade teacher also agrees with this idea, pointing out that more and more pieces of art are being bought, since the simple fact that they are acquired is already "a sign that they have a certain cultural level, in addition to purchasing power."

And that is increasingly relevant.

Main objects of desire

  • Whiskey.

    A good thermometer to know which are the objects of desire of the millionaires can be the luxury index elaborated by the real estate consultant Knight Frank.

    The most profitable investment for the great fortunes in the last decade has been the purchase of rare whiskeys, with a revaluation of 478%.

    The most valuable brand of this distillate is the Macallan bottles.

    For some of them, 5,000 pounds have been paid at the London auctions.

    A 55-year-old bottle of Yamzaki sold for $ 795,000.

  • Classic cars.

    Another of the favorite investments of the rich is classic cars, according to the report collected by The Wealth Report.

    For example, a 1932 Bugatti was sold by Bonhams for $ 7.1 million in 2020.

  • Wines

    The most exclusive wines have appreciated 127% in the last decade. Art is also a good option, a sculpture by Alberto Giacometti, a bronze from 1958, fetched 12 million dollars.

Source: elparis

All news articles on 2021-07-25

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