The Emergence of a New Class of Super-Rich: The 2023 Centi-Millionaire Report
According to the recently released 2023 Centi-Millionaire Report by Henley & Partners and New World Wealth, the number of centi-millionaires in the world has more than doubled in the past 20 years. Currently, there are 28,420 individuals with investable assets of $100 million or more, representing a 12% increase compared to the previous year.
Concentration of Centi-Millionaires
The report highlights that the majority of centi-millionaires are concentrated in the United States, with 38% residing there. China and India, as large emerging markets, also have a significant number of centi-millionaires. Additionally, 50 key cities worldwide are home to one-third of the global centi-millionaire community, with New York City leading the pack with 775 resident centi-millionaires.
Definition of Super-Wealthy
Dr. Juerg Steffen, CEO of Henley & Partners, notes that the $100 million plus band is now considered the benchmark for being "super-wealthy." This figure has significantly increased from the late 1990s when $30 million was seen as the threshold. Rising asset prices have contributed to this shift.
Growth and Decline in Centi-Millionaire Cities
The report also highlights the growth and decline of centi-millionaire populations in various cities. The Bay Area follows New York City in terms of resident centi-millionaires, with a growth rate of over 11% in the past year. However, cities like Chicago and London have experienced a decline in their centi-millionaire populations.
In conclusion, the 2023 Centi-Millionaire Report sheds light on the emergence of a new class of super-rich individuals. The concentration of centi-millionaires in certain countries and cities, as well as the changing definition of "super-wealthy," provide insights into the evolving dynamics of global wealth distribution.
Hot Take: The Impact of the Emerging Super-Rich Class on New Businesses
The 2023 Centi-Millionaire Report reveals a significant increase in the number of centi-millionaires worldwide, a trend that could have profound implications for new businesses.
Targeting the Super-Rich
The concentration of centi-millionaires in specific regions, notably the United States, China, and India, presents a lucrative market for businesses, especially those in luxury goods and services. New businesses could tailor their offerings to meet the unique demands of this super-wealthy class, potentially driving significant revenue growth.
Shifting Wealth Benchmarks
The shifting definition of "super-wealthy," with $100 million now being the benchmark, could also influence business strategies. Businesses may need to reassess their target demographics and adjust their marketing and pricing strategies to cater to this wealthier clientele.
Geographical Considerations
The growth and decline of centi-millionaire populations in various cities could guide location-based decisions for businesses. For example, businesses might consider establishing a presence in cities with growing centi-millionaire populations, such as New York City and the Bay Area.
In conclusion, the rise of a new class of super-rich individuals presents both opportunities and challenges for new businesses. While it opens up a potentially lucrative market, businesses must also adapt their strategies to cater to this demographic's unique needs and preferences.
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