Julius Baer has released its inaugural edition of the Global Wealth and Lifestyle Report 2020, which tracks the price trends of premium goods and services in the Julius Baer Lifestyle Index across 28 cities globally.
The report also features a special focus on ‘conscious consumption', highlighting how ethical choices about the environment and sustainability are causing a rethink in what it means to live well today.
According to the survey, Julius Baer examined prices and consumer behaviour around the world to better understand the world of luxury. The index shows that Asia is the most expensive region for high-end consumption, whereas Europe is the least expensive. The Americas lie between the two, although local price variations are considerable. Government policy, taxes, service charges, and local currency moves were the main contributing factors to regional and intercity price differentials. Overall, global luxury demand continues to grow steadily, as evidenced by the outperformance of listed high-end companies in the West against mainstream indices.
Rajesh Manwani, head Markets and Wealth Management Solutions Asia Pacific of Bank Julius Baer, commented: "The inaugural edition of Julius Baer's Global Wealth and Lifestyle Report showcases the trends in high-end consumption around the world, which are of relevance to our clients. The methodology was pioneered in Julius Baer's Wealth Report Asia, which has been issued since 2011. For the first time it has now been expanded to include 28 cities globally. We hope these findings will shed insight on global lifestyle trends in 2020."
This year, the report highlights the topic of conscious consumption - a shift to ‘less is more,' favouring less waste and more experiences over ‘stuff'. With society pushing for a more sustainable future, sustainability has become a topic for governments, regulators, and central banks.
Key findings of the report include, Europeans and North Americans are least likely to pay a premium for responsibly produced goods, because strict regulation already provides assurance on ‘ordinary' goods; and consumers in Asia and Latin America are more inclined to choose a product on its sustainability credentials. This may be driven by their first-hand experience of the man-made negative effects of economic growth.
This and more can be found in the new "Global Wealth and Lifestyle Report 2020".