As demand for luxury has grown so has the number of locations that offer a luxury proposition. But how does one determine which city is worthy of the title ‘the luxury location’? To answer this question, Walpole partnered with CBRE for the launch of our research paper 'Luxury and Location', at Brown's Hotel, London on Thursday 9th February. We were joined by a panel of expert speakers who discussed the appeal of London as a global luxury destination, including the unique cultural offering, sheer number of luxury store openings - and how London has double the amount of high-net-worth residents to other key luxury locations.
The first of a series looking at the fast-evolving luxury industry and its relationship with the property sector, ‘Luxury and Location’ focuses on the luxury markets in London, New York and Hong Kong. The analysis compares the cities through the property lens of Bond Street (London), Madison Avenue (New York) and Canton Road (Hong Kong) and analyses the key luxury retail destinations in each capital, as well as the wider aspects that influence the overall luxury experience. These cities have long been established as key destinations for luxury retail, with this report analysing the retail mix, the category dynamic and the consumer engagement in each location to uncover valuable insights and points of difference between the three.
Walpole's Director of International and Public Affairs Charlotte Keesing
Rebeca Guzman Vidal, Director, CBRE
Mark Henderson, Chairman of Gieves & Hawkes and Walpole Board Director
Andrew Phipps, Head of EMEA Retail Research at CBRE
Hugh Seaborn, CEO of Cadogan
Michael Ward, MD of Harrods and Chairman of Walpole
If you have any comments on this report, or would like more details on CBRE, please contact firstname.lastname@example.org.
Key data points from the report include:
London: Has nearly 20 million visitors a year and their total spend is $19.8 billion, of which 46.7% is spent on shopping ($9.2 billion) and 16.5% on food.
New York: Has 12.75 million visitors a year and their total spend is $18.5 billion, of which 24.7% is spent on shopping ($4.6 billion) and 18.9% on food.
Hong Kong Has 8.37 million visitors a year and their total spend is $6.8 billion, of which 30.9% is spent on shopping ($6.8 billion) and 19.5% on food.
Residents (Ultra-High Net Worth Individuals)
London has 16,100 UHNWI within two hours of London; NY has 8,300 and HK 8,200.
London was ranked number 1 most important city to UHNWIs in 2016; New York was ranked 2 and Hong Kong ranked 4.
London has highest number of UHNWIs who have second homes here.
NY: $4,000; HK: $1,856; London: $1,684.
Prime rental growth: London is up 53.8%; New York up 14.3% and Hong Kong down 33%.
London has the highest penetration of luxury brands of the three cities.
Of the three comparison streets, the offering is 40% fashion, followed by jewellery, and then in London and Hong Kong, watches. However, the presence of the auction houses and galleries in London is visible; this mix of brands and art is unique to London London has the largest number of 5* hotels and fine-dining experience.