Understanding the Ultra-Wealthy Market
Why It Matters for Interior Designers and Suppliers
Understanding your client base is essential in any business, not just in luxury interior design. However, the stakes are even higher when your clients include high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). These are not just affluent clients; they represent a demographic with immense buying power, unique tastes, and an expectation for bespoke, highly personalised experiences.
In the past few years, a few reports have been released following extensive studies in this market. Based on this information, I will:
Introduce you to the UHNW landscape
Explain why these clients matter to your business
Lay the foundation for practical strategies to attract and engage them.
The Global Landscape of Wealth
Who Are the UHNWIs?
Ultra-high-net-worth individuals are defined as those with a net worth exceeding $30 million. According to the Altrata World Ultra Wealth Report 2024, the global UHNWI population grew 7.6% in 2023, reaching 426,330 individuals. Their combined wealth increased by 7.1% to $49.2 trillion.
While UHNWIs represent just 1.2% of the global HNW population, they control over 31% of this group’s total wealth. Billionaires comprise only 0.8% of the UHNW population and hold 24% of the total ultra-wealthy wealth. This level of wealth translates into significant purchasing power and influence. This is an opportunity no luxury designer or supplier can afford to overlook.
Where the Wealth Resides
London as a Global Hub
The city’s prominence in the UHNW landscape is a significant advantage for interior designers and suppliers based in London. London ranks second regarding UHNWI's residential footprint, with over 15,000 ultra-wealthy individuals calling the city home. Despite economic fluctuations, Brexit, and changes to property taxes, London remains a magnet for the wealthy due to its cultural significance, educational institutions, and robust financial services.
Beyond London: A Global Perspective
While London is a critical market, UHNWIs are spread across the globe. New York leads with nearly 22,000 UHNW residents, while cities like Dubai and Paris are emerging as key destinations. Dubai, in particular, attracts a younger, dynamic UHNWI demographic with a taste for modern, cutting-edge design.
Moreover, UHNWIs often own multiple residences worldwide, from primary homes to vacation properties and investment real estate. This diversified property portfolio offers interior designers and suppliers numerous opportunities to engage with them across different markets.
Why This Matters for Designers and Suppliers
Demand for Bespoke, Personalised Experiences
UHNWIs do not simply purchase products; they invest in experiences and craftsmanship that reflect their individuality. They expect customised, highly personalised services that cater to unique tastes and lifestyles. Generic marketing and off-the-shelf products won’t resonate with this audience.
Opportunities for Growth
The growth in global wealth means that the pool of potential high-value clients is expanding. With the UHNWI population expected to reach 587,650 by 2028 and an additional $19 trillion in newly created wealth, the opportunities for luxury brands are set to increase.
Engaging with UHNWIs can lead to long-term, lucrative relationships beyond a single project. Their influence and purchasing power can elevate your brand’s reputation and open doors to new markets and networks.
Practical Takeaways
Identify UHNW Trends in Your Current Client Base:
Review your existing clients to see if any fit the UHNWI profile. Look for opportunities to deepen these relationships with personalised services.
Research Key Markets:
While London is a key hub, consider expanding your reach to cities like New York, Dubai, and Paris, where UHNW populations are growing.
Align Your Offerings with UHNWI Expectations:
Evaluate your products and services to ensure they meet the high standards and personalised demands of UHNW clients.
In our next post we will explore, How to Attract and Engage HNWI Clients.