As all other areas of the economy are stalling we’ve heard a lot of stories that the luxury market is booming. Burberry, Mulberry, Land Rover and Bentley have all seen big rises in revenue over the last 12 months, showing that the money at the top is still circulating around the economy.
This is the same for the Luxury Yacht market. Boat International Magazine report that there are 72 current orders for new Superyachts currently in commission and that the largest ordered superyacht is 100m long. Out of these 72 mega expensive toys, the average length is just under 42 metres or around 120 foot.
Source: http://www.boatinternational.com/market-intelligence/superyacht-orders/
Where is the Super Yacht Money?
So if you are looking to invest in shares in the luxury market, though very top line, these countries may be a good indicator on where the money is.
Luxury Cars
It was reported recently that figures from luxury carmaker Bentley has defied the economic gloom with a 37% surge in global sales, which gave European stock markets a boost and a sign that the luxury market is booming.
Bentley took analysts by surprise with a sparkling set of figures for 2011, powered by rising sales to China and the United States. It has forecast strong growth this year.
With investment companies such as Goldman Sachs spending $12bn on salaries and bonuses, it is no surprise that the luxury market can keep its end up in these economic downtimes.
Bentley, owned by the German car group Volkswagen (VW), is based in Britain where it employs 4,000 people in Crewe and is viewed as one of the most successful Anglo-German business ventures.
It’s old friend, Rolls Royce also reported very positive results.
As with Volkswagen-owned Bentley, the marque brand has benefited from strong demand from China and Asia. Rolls-Royce said sales in the Asia-Pacific region rose 47%, increased 23% in the Middle East and by 17% in north America. China and north America were Rolls-Royce’s largest markets last year.