The findings of the 2024 Julius Baer Lifestyle Index have uncovered fascinating insights into the expenditure habits of high-net-worth individuals (HNWIs) on a global scale. The index, a component of the 2024 Julius Baer Global Wealth and Lifestyle Report, has demonstrated a noteworthy increase in prices across various categories, with limited exceptions.
As per the report, the prices of luxury items such as fashion, jewellery, and designer shoes have witnessed a substantial surge. Specifically, jewellery experienced the highest increase at a global rate of 9.6%, followed by ladies’ shoes and men’s suits at 9.3%. This rising trend in prices for high-end consumer goods has persisted over recent years, despite resistance from consumers against the escalating costs.
The escalation in prices is particularly pronounced in Europe, renowned for its luxury fashion houses, where items like jewellery and handbags have registered a significant upsurge in prices. Similarly, in the Middle East, HNWIs have directed their spending towards premium products such as designer clothing, jewellery, and luxury watches.
Interestingly, although luxury items have experienced a surge in prices, certain categories have witnessed a decline. The global cost of bicycles decreased by 6.4% last year, with business class flights also exhibiting a decrease of 1.7%. Furthermore, the cost of whiskey also decreased by 1% globally in 2023.
The reduction in the cost of business class flights can be attributed to the gradual return to normalcy in travel post-pandemic. The period following the pandemic has seen a surge in travel demand, leading to a spike in prices. However, this decrease in flight costs seems to be a correction to the exorbitant fares that passengers were subject to in the preceding years.
Furthermore, the Julius Baer Lifestyle Index has indicated a universal increase in spending by HNWIs on travel and hospitality across all regions of the world. Nearly half of the respondents from all regions expressed their intention to travel more in the upcoming year, contributing to the reduced costs of flights, particularly business class flights.
In Mumbai, the cost of jewellery surged by 19%, while women’s handbags saw an increase of 5.8%. These figures mirror the evolving spending patterns and preferences of HNWIs across diverse regions.
The Julius Baer Lifestyle Index offers valuable insights into the changing trends in luxury item prices and consumer spending among HNWIs. As the world gradually emerges from the pandemic, spending patterns and the prices of luxury items are expected to continue evolving, influenced by global economic and lifestyle changes.