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Mumbai among cheapest cities in the world for luxury goods, says Global Wealth and Lifestyle report

Hemani Sheth Mumbai | Updated on January 17, 2020 Published on January 17, 2020

The Gateway of India in Mumbai -- Paul Noronha

Which cities are the best for the wealthy? Swiss wealth management group Julius Baer Group Ltd answered the question in its first Global Wealth and Lifestyle Report 2020, released on Thursday.

The report is a compilation of lists that rank 28 cities around the world to purchase luxury goods and services.

Out of 28 cities, Mumbai was ranked as the cheapest city for purchasing luxury goods and services, while Hong Kong was found to be the most expensive.

Four out of the top five most expensive countries for luxury goods and services, in fact, were found to be Asian countries. Hong Kong topped the list, followed by Shanghai, Tokyo, New York and Singapore.

Luxury goods and services in Asia

Property, cars, a business class flight, fine dining, a wedding banquet and beauty services are priced the highest in Hong Kong.

Eight of the 10 most expensive places to buy a luxury car were in Asia, which the report attributed to high import taxes.

Property is particularly costly in the region, with six of the 10 most expensive cities located in Asia.

Ironically, Mumbai was found to be one of the most convenient cities in terms of property purchase.

“Having a bottoming residential property market also made the city more affordable for the rich. In fact, wealthy residents are able to buy property at around a tenth of the price of the most expensive city,” CBNC reported.

“Mumbai is very much the region’s outlier. For the international traveller, Mumbai’s value is understated, given that more expensive items there would only be purchased by locals, i.e. cars, flights and pianos,” the report said.

Several items in the report were priced in or close to the bottom quartile in Mumbai with the best value for watches, jewellery and men’s suits.

Sustainability and changing luxury market

The report also focused on consumer trends across the globe affecting the luxury business market.

According to the report, “Driven by a booming number of wealthy residents who are reshaping the global high-end market, Asia is now home to the three most expensive cities in the world. But as consumers worldwide begin to put sustainability in focus, the high-end market is set to undergo further transformation in the coming years.”

Consumers in Asia are highly conscious in choosing products, preferring products that are fair-trade labelled or environmental-friendly.

The survey was based on the price comparison of 18 premium goods across 28 cities around the globe. From Cartier, personal trainer services to vin rouge, the report studied the prices of luxury goods and services across a wide spectrum dividing them into five major categories, including ‘Home’, ‘Experiential’,’Fashion,’ ‘Family’ and ‘Wellness.’


 

Published on January 17, 2020
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