News>2008.07.02

[Column] "Where is high net worth segment in a global scope?" Update

These days rich segment focused marketing are trends in Japan. New concept marketing focus on new rich, who created wealth with real estate and stock differently, from someone born a rich. These trends is not only that of Japanese market but also is global trend.

World Wealth Report 2008, a global high class segment research report was announced in 2008 by CapGemini and Merrill Lynch (AFPBBNews June 25, 2008)

Due to the report, by countries India, China and Brazil are most growing countries about 6% growth, and by geography the number of high class is growing most at Middle east (15.6%) , Eastern Europe (14.3%), and Southern America (12.2%).

With its data and consumption analysis about high class, the report defines high class people with asset worth 1 million USD as HNWIs (High Net Worth Individuals) with more than 1 million USD asset, and high class with more than 30 million USD as Ultra-HNWIs. (”World Wealth Report 2008")

I analyzed that HNWIs ratio out of total population by countries varies between 0.01% and 1%. The this ratio of developed countries stay around between 0.1 and 1%, and that of emerging countries go downs between 0.01 and 0.1%.

Where is high net worth segment in a global

 

In the case of Japan, I assume about a bit less than 1% as same level as that of US. In a global scope, these growing number and asset of HNWIs at emerging markets can be huge potential market.

You might have questioned already though, are really HNWIs with more than 1 million USD high class customers from the first place?

Answer should be yes from financial institution 's perspective. For instance, from retailer's perspective, some of retailers define consumers spend more than 3 million JPY as high class segment. Even among Japanese stock brokage firms, some of them define customers with 10 million JPY at account as high class, others define those with even more. (Fuji sankei July, 2008, "War for retaining wealthy" in Japanese)

In a summary, every wealth marketing assumes specific selling products and services at the end. The world wide report definitely assume financial product selling segment from financial institution's perspective.