Consumers looking to buy luxury goods for the festive season may read Julius Baer's latest Wealth Report Asia, which reveals the most expensive city and the most price-competitive.
Shopping for luxury items? This year, Shanghai reclaims its title from Hong Kong as the most expensive city in Asia, whereas Kuala Lumpur maintains its position as the most price competitive, according to Julius Baer's latest Wealth Report Asia launched on Tuesday.
Gender-Based Comparison For Personal Adornment
The Julius Baer Wealth Report Asia 2018 introduces a new His & Hers Index to compare the cost of luxury goods for men and women, in relation to personal adornment. The findings corroborate studies that gender-based pricing exists even in the luxury space, with prices for items in the Hers index costing more on average than the His index equivalent.
Seoul comes up as the most expensive city in Asia for both male and female luxury goods. This is largely owing to a special excise tax of up to 20 percent on certain luxury goods imports. On the other hand, Jakarta ranks as the cheapest for men’s luxury goods, while Mumbai is the most price competitive for luxury female goods.
The Female Dollar
The eighth annual edition of the report delves into the power of the female dollar – namely, Womenomics in Asia. Women now account for half of Chinese luxury spending, the bank report said. The purchasing power of women in Asia is increasingly gaining recognition, with more women in senior management positions and becoming more financially savvy.
«The rising economic status of women is perhaps one of the most important economic shifts in recent years. Women are creating and managing an increasing amount of wealth and their wealth management needs should be well served. At Julius Baer, we are committed to serving them with best-in-class advice and solutions based on their specific needs,» said Jimmy Lee, head Asia Pacific at Bank Julius Baer.
Lifestyle Index Shows Strength in Demand
The Julius Baer Lifestyle Index rose 2.91 percent on an aggregate basis in USD terms, which was its best yearly growth on record. The index continues to maintain its upward trajectory since its launch eight years ago, underscoring the strength in demand for luxury goods and services in Asia.
«Our Julius Baer Lifestyle Index rose to a record high, spurred by an improving global economy and sustained wealth generation in Asia. We expect the fundamental strength of the region’s economies to further drive the growth in the number of millionaires in Asia,» said Rajesh Manwani, head of Markets & Advisory Solutions Asia at Bank Julius Baer.
