Following wealth sirens of the global economy

Austerity has prompted widespread shifts in behaviour away from the frothy consumerism of the Noughties. So it seems paradoxical to suggest we turn our attention to the activities and shopping choices of the 2% that own more than half of the world’s total domestic wealth for ideas and inspiration of what is coming next.

Trendspotting in the 1980s meant hanging about on street corners to predict which branded goods were about to become the next must-have designer label or sports shoe to benefit from the global wave of youth mass consumption. But now, with the spread and globalisation of the ‘wealth sirens’ (our moniker for the super rich) it is incumbent on the assiduous contemporary trendspotter to hang around on La Croisette for inspiration and ideas.

It seems certain that the mega-rich population will swell, as will that of the medium-rich. This is essentially a story about what such consumers will do with their prosperity at every upward-income stage through which they ascend. Despite our own belttightening, there is no sign that our human interest in the lifestyles of the mega-rich is diminishing. The strength of demand for celebrity as content in the mushrooming global media environment is being accelerated by the mingling of the super-rich with the super-famous and super-beautiful.

Significantly, the activities of the mega-rich go far beyond the West. Of the world’s 1,011 billionaires recorded by Forbes Magazine in 2010, as many are from Asia as from Europe. For the first time ever, each region has its own cohort of billionaires represented in this globally influential niche, thus broadening their appeal and role as inspirational icons to billions. And it seems that there is no end to the ambitions that took the billionaires to the top in the wealth stakes. Not only do they spend on a spectacular scale, they are increasingly seeking power and influence in new ways beyond being benefactors and de facto patrons in their own regions.

What they buy

The implication of the wealth siren theme is that what the mega-rich devour every day the rest of us would like to taste at least once in a while. Their appetites are characterised by customised exclusivity, artisanal perfection, the best whatever the price or seeming ludicrousness. In Russia, for example, the annual Millionaire Fair showcases some of the world’s most expensive items, such as a Fissler cooking pot inlaid with more than 200 diamonds, with price tags that would be excruciating to most people.

Joselito ages its Ibérico Gran Reserva ham for 68 months and, in an upgrade, each ham comes with a black leather and red silk presentation case designed by Andres Sarda, propelling the product further into a realm of exclusive luxury. Retailing at around £3,000, this delicacy is the opposite of fast food. As the numbers of the mega-rich grow over the decade to come, we believe that their influence will trickle down in more modest forms.

For example, so-called ‘concierge brands’ have begun to offer affordable concierge-style solutions that give consumers a small taste of the VIP world. Gilt Groupe, Vente privee, Rue La La and Ideeli are some of the online clubs that specialise in flash sales of designer wares. Jetsetter and Voyage Privé give members access to exclusive holiday and travel offers ranging from boutique hotels to luxury villas and island getaways along much of the same lines.

Politicians and Philanthropists

The mega-rich are not merely self-indulgent consumers, they form a political class with serious expectations of influence over public policy everywhere. Roman Abramovich’s role as Governor of Chukotka is well known, as is his penchant for premiership football as another route to influence. More philanthropically, the world’s richest man, Carlos Slim, has ‘$4bn of investments ready to promote education, health and other great challenges’ in his own eponymous Foundation. Some 165,000 young Mexicans have apparently been helped through university by the Carlos Slim Foundation. He has invested more than $2bn in the renovation of inner Mexico City, and his personal website is totally presidential in tone.

The INGKA Foundation was formed by the owner of IKEA, Ingvar Kamprad, to promote innovation in design. It can spend up to €45m per annum – a fraction of its total monetary value – on charitable causes. The endowment of the Gates Foundation – with its pro-health and anti-poverty agendas – runs to over $30bn, the equivalent of the US’s entire annual overseas aid budget.

It seems that the mega-rich and the legions of average-rich following behind represent a throbbing human dynamic inside the forward march of the global consumer society as well as demonstrating how we can behave as concerned global citizens. They become, everywhere, more important, more numerous, more influential every year.

Melanie Howard is chair of the Future Foundation and a non-executive director of TCA. [email protected]