Country Overview Section produced in collaboration with LUXURY SOCIETY MARKET GUIDE ITALY LOCAL WEALTH Population 58,091,000 Millionaires (number) 463,000 Millionaires (assets) $2,140 billion Tax rises are driving the wealthy population out of the country, such that in 2008 their overall numbers declined. However, one of the largest tax amnesties in Europe was conducted by Italy, which attracted or more, however this is an underestimate as many avoid declaring their true income to avoid tax. The tax The amount of capital repatriated or regularised by banks contributed to the creation of a critical mass necessary for the development of a true wealth management industry in Italy. Italy’s high wages and costs put its manufacturers at risk of losing <strong>market</strong> share to competitors in poorer nations. Italian craftsmen argue that their quality and fashion sense offer a competitive edge. 50% of Italian HNWIs are small-medium entrepreneurs and/or an independent professionals, whilst the other 50% is made up of celebrities and heirs. As a result of the credit crunch, Italian HNWIs pulled back from investing in local stocks more than other developed nations, and remained quite bearish on foreign equities. They remain amongst the most cautious investors. Much of Italy’s hidden wealth has been created by successful family business in Italy’s more entrepreneurial areas, mostly in Northern regions. This is pushing the foreign companies to try to extend their networks deeper global <strong>luxury</strong> sales;; domestic demand for Italian <strong>luxury</strong> goods was estimated to be 40% of total turnover. LUXURY MARKET % of leading <strong>luxury</strong> brand stores 4% Growth in <strong>luxury</strong> stores +8% Luxury stores / 10k millionaires 2.08 Number of italian millionaires Italy is a <strong>market</strong> driven by automobiles and tourism, known in the <strong>luxury</strong> industry for a focus on design and artisan production. The industrialised country is home to some of the world’s most famous <strong>luxury</strong> brands, across a range of subsectors: supercars (Ferrari, Maserati, Lamborghini), fashion (Armani, Prada, Versace, 500k 40k 2000 Gucci, Dolce & Gabbana, Luxottica, Tod’s) and yachts (Aquariva, Perrini Navi, Ferretti & Azimut). 375k 250k 125k 30k 1500 20k 1000 10k 500 2008 2009 2010 2008 2009 2010 2008 2009 2010 Millionaires Deca-Millionaires Centa-Millionaires located the northern ‘industrial triangle’ of Milan-Turin-Genoa or the Tuscan triangle consisting of Florence-Prato-Pistoia. For the full report: www.ledburyresearch.com/research-reports/wealth-profiles For the full report: www.ledburyresearch.com/research-reports/wealth-profiles 9
Country Overview Luxury Car Demand 0 -10% -20% 2007 2008 2009 2010 Core Luxury Growth (Change in value of Swiss Watch Imports) 10% 0 -10% 2007 2008 2009 2010 Luxury Premium >CHF 3,000 CHF 500-3,000 CHF 200-500 Aspirational Luxury Growth (Change in volume of champagne imports) 20% 0 -20% Italy G7 Global 2007 2008 2009 2010 For the full report: www.ledburyresearch.com/research-reports/wealth-profiles
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