Everyone now knows what UHNWI stands for – but what do the UHNWIs themselves stand for? Winston Chesterfield, founder of strategic consulting firm Barton Consulting, reveals the characteristics of the world’s most exclusive groups of consumers – and how you can tailor your offering to their unique tastes.
What are the values and objectives of the world’s wealthiest people, otherwise known as Ultra High-Net-Worth Individuals (UHNWI)? How do they think, and what affects them the most? Are they the same or different to ordinary consumers?
The UHNWI is something of an enigma for luxury brands. Attractive dueto their great wealth and potential spending power, they are nevertheless oftendifficult to understand or appreciate, as their existence isn’t relatable formost individuals.
Barton has conducted research that provides insight into who theseUHNWIs are, what matters to them and how they are a unique consumer type in theluxury world.
UHNWIs are defined as individuals with more than $30m (£22m) in totalnet worth. The total global UHNWI population in 2021 stood at 295,450 (Wealth-X,2021). Their total wealth is$35.46t (£22.13t) – about the same as the annual GDP of the US and Chinacombined.
As a very smallpopulation, they are often treated hom*ogenously, but there is massive diversitywithin them, particularly from a wealth perspective. There can be a world ofdifference in terms of lifestyle and attitudes between an individual worth $50mand one worth $5b. But their net worth tends not to define them or make themwho they are.
So where do they get their values from?
Their background is one driving force. Cultural upbringing and religiousbeliefs, but also their demographic background and childhood, can shape the waythey see things and the approach they take, well after they have amassed agreat fortune – it is important to note that 72% of UHNWIs are entirely self-made, and only 20% have inheritedtheir wealth (Wealth-X, 2021).
Despite belonging to one region, which is usually dictated by theircultural or business background, many UHNWIs are best described as ‘globalcitizens’ as they often own property in more than one region and frequentlytravel back and forth between their homes. This impacts upon their valuessignificantly, as they have broader cultural experiences, making them culturalmagpies and more tolerant of diversity. Their homes are places to welcome theworld, as well as places to retreat to for privacy and personal cocooning.
The number-one shared interest among UHNWIs is philanthropy. Anddespite there being some fiscal advantages to considerable charitable giving,many UHNWIs see it as a duty to take part in this, a responsibility that comeswith the fortune they have acquired.
What does this suggest about UHNWI values? For one thing, it demonstrateshow their attitudes can be formed by hereditary concepts of the purpose ofwealth, and the obligation to use it for good. It also shows how their sense ofimportance and social value can be formed, as the feeling of being thanked andhonoured for generosity has an impact on their expectations.
However, despitean interest in philanthropy, UHNWIs are chiefly focused on their own lives,their family, and in particular their children – the kind of education theyreceive, the lives they build and succession plans for a business or the wealththey will leave behind. In our research, family and succession were mentionedby most as the greatest issue that concerns them. This means that UHNWIs are moresusceptible to being sold something on the benefit to someone they care about,not themselves.
Which is not tosay that UHNWIs are not concerned with their own health and wellbeing. It isn’t justliving longer lives that they value but living lives which enable them to enjoythe passing of time more. Wasted time is an unforgivable tragedy to many verywealthy people and the need to make the most of their time dictates many oftheir decisions. Those who improve a wealthy individual’s knowledge on a topic areadmired and given custom. The luxury products they value the most areappreciated for what they can do, how they work and the time they represent interms of craftmanship and longevity.
UHNWIs are alsoconcerned with more global issues. They are usually very well-informedindividuals, intelligent and resourceful, and they want to know what is goingon in the wider world in order to make better decisions. Their top concernoverall in this context is political risk, followed by economic stability andthen conservation, the environment and sustainability.
But what makes an UHNW individual UHNW in the first place?
The character ofmany UHNWIs – as most are self-made – is often different to others. Though manyadmit that luck has played a role in their success, many also refer to drive,vision and risk-taking. These are personal qualities they possess that play arole in them becoming wealthy in the first place. However, they are alsoqualities that shape the way they want to use their wealth.
UHNWIs are acomplex population. Defined by others according to their wealth, they seethemselves differently, and have values and objectives that surprise many.Their generosity can be formed by a cultural expectation or their upbringing,not their financial success. They can seek simplicity, but often only beoffered ornamental intricacy. Their value system is often very personal andthere to be explored and understood. At this level, with the great consequenceof their achievement, the personal is more desirable. Understanding them bytheir values and motivations, rather than merely their wealth, will engendertrust, warmth and – most importantly – loyalty.
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