July 14, 2020
Makers of luxury goods and services will have to adjust how they operate and market to ultra-high-net-worth consumers if they want to retain their business in the COVID-19 era.
That was a key takeaway from recent surveys of customers and brokers run by Northrop & Johnson, a Fort Lauderdale, FL-based yacht sales-to-charter company.
“We asked our very busy and affluent customers to share their feedback on a broad range of topics, including how COVID-19 is impacting their lifestyle and what they forecast for the foreseeable future,” said Daniel Ziriakus, president and chief operating officer of Northrop & Johnson, in a statement.
“The message is loud and clear, UHNWIs either plan to decrease or avoid activities that would increase risk of exposure, at least until COVID-19 has been mitigated,” he said.
Safe than sorry
In each category bar online shopping, home entertaining and private aviation and yachting, more than 50 percent of Northrop & Johnson customers said they plan to decrease or completely stop their usual activities until COVID-19 is mitigated.
Those categories under pause include flying on commercial airlines, dining out at restaurants, shopping at malls, department stores and small boutiques, attending live events, conferences and conventions, and staying at hotels and resorts.
Per Northrop & Johnson, key findings from the survey include:
Winners include brands that sell online and travel options that are perceived to be safe, such as private jets and yachts.
“While UHNWIs represent a small segment of the market in terms of population, the purchasing power of these individuals and the businesses they control can have significant impact on the industries where they typically spend hundreds of billions of dollars annually,” Mr. Ziriakus said.