All In The Family
The
ultra-affluent are spending more on their families-recognizing their
role in carrying on traditions, ideas, power and, of course, wealth.
It's not unusual to see clients purchase jets or vacation homes and
make them accessible to extended family and friends. One company,
Storyzon, writes and publishes personal biographies for prominent
families that can be passed on to future generations. The University of
California, Irvine, recently started a program called Financial Life
Skills Retreat, which instructs the children of rich families how to
deal with the responsibilities brought on by great wealth. It's also
notable that the number of family offices is at an all-time high.
The Power Of Gen Y
A
powerful demographic is emerging that is highly educated and tapped
into the good life. Meet Generation Y-also known as Echo Boomers or
Millennials-which consists of 70 million people born between 1983 and
1997. This group is comfortable with anything hi-tech and resides in
the Internet universe of blogging, social networking, online auctions
and text messaging. They spend about $150 billion a year, have an
average disposable income of $100 per week and exert influence over
another $50 billion in family purchases. This is a demanding group that
knows how to research products, services and investments. They are
willing to spend in those areas that lend to self-expression, such as
designer clothes and cars.
The Rise Of The Medical Concierge
Wealthy
clients are increasingly demanding the same level of service for their
medical issues as they do with their legal and investment matters. A
new medical concierge industry has already emerged that provides
different levels of customization and services. For an annual
fee-between about $10,000 and $50,000 for a single person-clients get
access to a personal health advocate and a worldwide network of
best-in-class doctors and medical experts. Most of these services are
available 24/7 and can be accessed from anywhere in the world. The few
firms leading the movement include Pinnacle Care, Private Health
Management and WorldClinic.
The Growth Of 'Voluntourism'
Travel
has become more than a leisure activity for the wealthy-it has also
become a philanthropic endeavor. Ultra-high-net-worth clients are
looking for memorable travel experiences that allow them to "give back"
to the communities they visit. Entities ranging from museums, to
non-profits, to luxury tour operators and five-star hotels are
responding to the demand with a variety of offerings. Ritz-Carlton, for
example, has started offering at least one volunteerism package at each
of its hotels. Destinations vary depending on the provider and can
include Kenya, Vietnam, Costa Rica, Peru or domestic locations such as
New Orleans. Travelers may find themselves working at a conservation
lodge or an AIDS hospice, teaching children to read or digging
irrigation ditches. This popular travel option has not only become an
exotic alternative to traditional travel, but it has also become a way
for families to reinforce the value of "giving back" with their
children.
Pet Spending
Dogs,
cats and other pets are increasingly being treated as members of the
family, and in the case of the wealthy that means they are the
recipients of much spending. The number of high-end pet stores and
pet-related philanthropies is on the rise and it's been estimated that
25% of the affluent have set up a pet trust. This is in addition to the
money spent on pet items and services such as luxury toys, clothing,
warming mats, deep muscle massage and life coaching. Affluent pet
owners spend an average of $257,000 per year on their pets, according
to a survey released by Prince & Associates (see "It's A Dog's
Life," PW April/May 2008). Overall pet spending in 2008 was expected to
increase 6% from a year earlier, to $43.4 billion, according to the
American Pet Product Manufacturers Association.
Private Residence Ownership
From
the time-share to the private residence club, affluent families have
long enjoyed exclusive access to the world's finest properties and
destinations. A new concept has emerged that is truly unique: a private
real estate investment opportunity that grants members not only access
to ultra-luxurious residences strategically located in the world's more
sought after destinations, but a stake of ownership in the homes as
well.
Knudson Estates, a key innovator of this movement, launched only a few months ago and offers a forward thinking concept that combines idyllic properties; a host of lifestyle services and amenities including incredible chefs, fine wine, concierge services, etc.; and the sharing of appreciated assets for those who are accustomed to only the best. Look for this trend to continue as the ultra-high-net-worth are no longer satisfied with the status quo in fractional residence ownership programs and will look for new opportunities to invest, while also allowing them to enjoy a level of exclusivity that exceeds all expectations.
Kristen Schmitt is the Chief Marketing Officer of MINT, a lifestyle and concierge resource for an exclusive list of global clients. For more information visit www.inthemint.com.