According to an Economist Intelligence Unit global report sponsored by Citi and reported in the South China Morning Post, the total wealth held by China’s moderately wealthy (households with financial assets of US$100,000 to US$2 million) will be double that of their United States counterparts in 2020. The U.S., with a total of US$23 trillion in wealth amongst the ‘NWB’ (new wealth builders), topped 2014’s ahead of thirty-one other countries, with China in second place at US$19.5 trillion.
NWB are the world’s fastest growing wealth population segment and expected to be the new focus of luxury brands, especially in Mainland China, not least of all because of the crackdown on gift spending. Perhaps the trend noted by many during Baselworld 2015 of an increased number of solid pieces at lower price points are an awareness of this but if not, they may prove to be beneficiaries.
Last year, according to the Economist Intelligence Unit report, the global NWB segment was worth more than US$88 trillion, double the US$43 trillion of the high-net-worth (over US$2 million) segment.