The COVID-19 pandemic has not solely affected the approach to life habits and shopper habits of middle-class households but in addition of high-net-worth people (HNWI). Switzerland-headquartered Swiss Bank ‘Julius Baer’ lately revealed its report titled ‘Global Wealth and Lifestyle Report 2021’ (GWLR), that the influence of the COVID-19 disaster on high-end consumption was vital throughout continents. The report said that the pandemic-induced lockdown in a number of elements of the world vastly impacted touring and leisure actions.
The main findings of the report highlighted that the COVID-19 pandemic raised shopper consciousness of shopping for sustainably and ethically. Last yr, consumption patterns modified and shoppers turned extra acutely aware of their habits. Even with respect to high-end items and premium providers sector, shoppers residing in costly cities of varied continents inclined in direction of acutely aware decisions, which may lead to fairer charges for producers.
“While there have been regional variations, total the worth of our basket reflecting the approach to life of rich people around the globe confirmed a rise of simply 1.05 per cent. Asia continues to be the most costly area on this planet for high- and ultra-high-net-worth people – a testomony to the continent’s ongoing rise,” mentioned Rajesh Manwani, Head Markets & Wealth Management Solutions APAC of Julius Baer.
The pandemic gave rise to a motion of acutely aware consumption, which went mainstream and was seen in nearly each sector. The development of acutely aware consumption was additionally mirrored within the habits of high-net-worth people.
“The information factors to 2 clear conclusions for these trying to protect their wealth. The first is to take a position; inflation and different components similar to alternate charges and native laws can play an enormous position within the buying energy of your wealth. Knowing your native and even private inflation charges and secondly adopting the correct wealth administration and planning methods are important to stopping a real-term erosion of wealth over time,” mentioned Nicolas de Skowronski, Head Wealth Management Solutions and Member of the Executive Boards of Julius Baer.
According to Mr Skowronski, a number of purchasers tried to make their property work for future generations. In order to protect sources for their very own descendants, folks selected habits similar to influence investing, worth investing, sustainable options, foresighted planning, or philanthropy.