Why is it important to understand wealth in Asia-Pacific?

Life as we knew it has changed, and the wants and needs of UHNWIs are evolving – where they spend time, what they invest in, and what they are likely to do next. In the face of the global pandemic, where the world’s economic momentum is slowing down, Asia-Pacific’s foothold as host to the world’s leading wealth hubs continues to strengthen, and it is only just scratching the surface in terms of its potential growth. The future is Asia has never been truer!

During The Wealth Report: An Asia-Pacific Perspective webinar hosted by Head of Residential Asia-Pacific, Victoria Garrett, our Wealth Report Editor, Andrew Shirley, shared his views on why people should care about the wealthy, what are the behavioural shifts of UHNWIs amid the pandemic, how the pandemic affected the property market in Asia-Pacific, and what are some of the key emerging trends this year.

Our power panel of speakers provided insights on the following topics such as private office trends, homes of the future, ESG investing as well as mainland China’s unstoppable luxury market.

Here are some key takeaways from a couple of the speakers:

From Isabelle Miaja of Miaja Design Group on Future Homes

Across the world, people are now spending a lot more time staying and working at home. In the past, bringing in elements of outdoor and nature into homes was something unimaginable, but now people are opting for fresh air and natural ventilation, rather than having their air conditioners switched on 24/7.

With a heightened sense of wellness amid these tumultuous times, UHNWIs are placing greater emphasis to better their quality of living, from selecting where they live, comparing the different amenity packages, down to consciously choosing the types of furniture and household products that have an impact on their health and wellbeing.

From Sara Jane Ho of Miss Wonder Omnimedia on Mainland China’s Luxury Market

In recent years, the rise of “Guochao (国潮)” has been shaping the Chinese consumer culture, and this phenomenon is showing no signs of abating in the near term. “Guochao” refers to the rise of hip, homegrown Chinese brands that are challenging international brands for domestic market share, and that includes the luxury sector.

Sara Jane highlighted three trends that have led to this phenomenon:

1. The change in behaviour of mainland Chinese – They no longer seek to build wealth in their homeland and leave, which is causing a fundamental change in business models and a monumental paradigm shift of what’s “Made in China”.
2. The government’s greater emphasis on supporting local and domestic consumption – The creation of top-down initiatives not only aided the shift of public sentiment away from foreign brands, but also pushed manufacturers to be more innovative with their brands and products, especially with large funding available for more ground-breaking innovations.
3. Millennial and Gen Z consumers also playing a pivotal role in the modern shift – As the younger generations seek more novel products that stand out from the crowd, it fuels a rapidly evolving culture of innovative mega-collaborations between international and local brands. When done well, these increasingly innovative collaborations could just send sales levels off the charts.

With 125 years of experience servicing our clients, our longevity in the business and expertise in wealth are testaments to the trust, understanding, and relationships that we have developed over generations. We pride ourselves on our thought leadership and being insightful to our clients. Watch the full Asia-Pacific webinar replay here.