To say the very least, we live in exciting times. It may also be perceived as strange times. What does that mean to the trends in lifestyle?
The last 18 months, from the beginning of 2020 until today, arguably may have changed the world forever. The way we do business, the way we live our lifestyle, enjoy our lives and travel, but also the freedom(s) we previously took for granted.
So what really changed in the world of luxury lifestyle?
Luxury goods are sold out everywhere and that’s no joke. Insiders are saying that brands like Louis Vuitton and Hermes decided to order less leather and other supplies at the beginning of the pandemic, anticipating that the global economy would struggle and demand would go down. The economy did take a hit, but only short term because the world’s governments decided to inject unprecedented stimulus into the financial markets. So now, most luxury goods are sold out and selling at hefty premiums worldwide. The famous Hermes Birkin bag is also subject to unprecedented price surges. Not in the stores but in the secondary market! Bags with regular epsom or togo leather are selling for three times the retail price with ease. This doesn’t appear to be a clever move by these brands who would usually control their supply but rather it is an actual shortage and there is no end in sight.
The same is true for demanded watch brands like Rolex, Audemars Piguet, Patek Philippe or Richard Mille. Before the pandemic, the popular Rolex Daytona (white dial) edition was selling for CHF 30’000.- on the open market, right now it is selling for CHF 40’000.-. This is more than three times the retail price and there’s no demand drop in sight.
The latest Patek Philippe 5711 with its novelty green dial is selling for more then ten times the retail price and reached auction results of around USD 500’000.-. The list of extravagant prices goes on and on. We have helped numerous clients build a beautiful watch collection over the years and we’ve never seen a surge in demand of this magnitude.
Yacht charters have never been more popular because it is the only “safe” way to vacation these days.
Private jets are flying like crazy because those who can afford it, want to avoid the hassle and complications of commercial travel.
Luxury vehicles are also in higher demand than ever. The Ferraris, Lambos and Porsches of the world are madly sought-after. The Mercedes G63 AMG has a 18-months waiting list and the if you want the new Porsche 911 GT3 Touring you will have to wait until 2023 to get yours. There’s a considerable shortage in parts like semi-conductors and if you pair that with the soaring demand, you’ve got yourself a large gap between supply and demand. As a result, buyers are paying hefty premiums even for cars that are not limited in production.
Real estate prices have gone up significantly all over the world. Private and institutional investors are using the cheaply available money to invest and to generate handsome returns.
The only things that properly tanked was commercial travel and public events. For the latter, there seems to be little recovery in sight for now, as people remain sceptical about public gatherings. Travelling remains complicated due to restrictions and requirements but the recovery is well on its way. Who knows how many waves of COVID we will still face, how many variants will disrupt our lives but one thing is for sure: the world of luxury lifestyle never seems to slow down.