In a set of unsurprising findings that reflect one of the reasons companies are looking far ahead past the current luxury slowdown, Boston Consulting Group has released a report stating that the number of millionaires and accumulation of private wealth in China are rising more rapidly than anywhere else in the world.
Most new millionaires are from China or India, said the report, while China has the third highest number in the world behind the United States and Japan. This number is predicted to flourish in coming years–while some countries such as the United States lost millionaires, China gained 193,000 and is expected to overtake Japan in 2017 for second place.
In addition, Asia is expected to surpass Europe for the highest amount of wealth accumulation within the next five years. Excluding Japan, the region had the fastest overall rate of growth for private wealth, which increased by 14 percent to $28 trillion in 2012. Projections see that rate nearly doubling to $48.1 trillion in five years, driving the majority of the world’s growth, which rose by 7.8 percent in 2012.
The luxury industry has taken note that there are distinct characteristics of China’s millionaires which affect the ways in which companies choose to market to them. According to the report, the main driver for China’s wealth accumulation in 2012 was economic growth rather than a rebound in equity markets that helped developed nations, meaning China’s rich tend to tilt toward hard assets when it comes to investment. Chinese millionaires are also younger on average than those from other countries. A 2012 Hurun report found that Chinese millionaires’ main areas of consumption include travel, education, and real estate.
Bloomberg has created an infographic visualizing the report’s data, which can be seen below: