China’s standing in the global private wealth ranking is well known but what is the future of wealth in China? How will the next generation approach their life and lifestyle? What impact will this have on yachting in the region?
Asia’s standing in the global private wealth rankings, and specifically China’s place therein, is well documented and discussed. Similarly, the Chinese appetite for luxury goods is often studied and reported in retrospect. However, what is the future and what will the next generation seek with their growing wealth?
Bain & Co has produced a condensed snapshot of the changing face of Chinese wealth which, along with other commentary, is a predictor of future. It is this kind of information that destinations such as Singapore, events such as the Singapore Yacht Show, and those involved in the Asia yachting market, can use to tailor their approach and maximise ROI.
Firstly, and perhaps unsurprisingly, private wealth in China is younger than ever before. As with their global peers, they are young, tech-savvy and outwardly focused. Singapore is among the Top Five international destinations that they frequent and where they invest their wealth.
Where the previous generation was avidly brand conscious – especially European brands – the next generation is more focused on experiences and a life balance. McKinsey found the current ranks of Chinese HNWI are confident their wealth will grow, are prepared to spend on products which enhance their life, and have a ferocious appetite for international travel.
Singapore Tourism Board’s (STB) own research supports this globetrotting, confident market segment, defining them as ‘digital natives’ who ‘enjoy life in the moment and attach great importance to freedom, individuality and self-expression’. According to STB, they are big spenders who value quality, and - most importantly - are the largest growing segment for inbound tourists to Singapore.
What does this mean for the yachting market? From the point of view of the Singapore Yacht Show team, it is extremely positive and reinforces Singapore as the regional hub for yachting. Consumer confidence is growing with wealth and confident consumers are bolder. Singapore is a desired, modern and progressive destination which appeals to the younger affluent traveller. Finally, yachting achieves many of the goals expressed by this group who seek experiences, high-quality leisure activities which are envied through their social media accounts.
In conjunction with STB, the Singapore Yacht Show is expanding its marketing activities to capture the attention of the young Asian traveller and bring them to the 2018 edition of the Show to sample the yachting lifestyle. The team’s efforts are focused on avenues which make the Show more immersive and alluring. Its aim is open the concept of yachting as something achievable and realistic in the short and medium term to those already enamoured with Singapore.
It is a collaborative effort, and should you wish to discuss how your brand can be involved, please contact your Relationship Manager to discuss these initiatives further.