Reasonably-Priced Luxe Items for Your Friendly Neighborhood Millionaire
We may be in the midst of a luxury spending resurgence. After an abysmal 2020, a strong stock market, high levels of accumulated savings and perhaps a bit of treating oneself after last year are all combining to inspire high net worth consumers to spend more on luxury items.
Bain & Company, the world’s leading advisor to the global luxury goods industry, says while the outlook for 2021 still remains uncertain, the global personal luxury goods market is expected to reach between €250-€295 billion (or approximately $294.54-$347.56 billion). So, if you or someone you know has a few thousand (or million) dollars laying around, here are a few items from publicly traded companies to consider.
Consumers love large-screen televisions. In fact, Americans spent an estimated $30 billion on them in 2020, according to market research provider Statista. Each year, manufacturers compete to top each other on size, resolution, and smart features to capture a larger part of the massive market. In the high-end consumer electronics market, Samsung Electronics (Tii:SSNLF) offers the Samsung UA11059. With a suggested retail price of $152,000, the 4K Ultra HDTV features a massive 110-inch screen with Motion Control that allows you to control the TV with a wave of your hand.
Stuart Hughes is famous for taking gadgets and taking them to an entirely new stratosphere of luxury by adding precious metals and jewels to extreme levels. This time the UK designer took the iPhone by Apple Inc. (Tii:AAPL), added 300 grams of engraved solid platinum and 200 black diamonds to create the iPhone 12 Pro Platinum & Black Diamond Time Edition. For the not-low, low price of £29,995 (approximately $41,498), you too can own this luxe communications device, which comes with a certificate of authenticity. This isn’t even the designer’s priciest iPhone ever. About a decade ago, he introduced an $8 million iPhone 4 that featured a rose gold bezel embedded with 500 diamonds on the front and 53 on the back.
We would be remiss if we didn’t mention the high-end automotive industry. While one would expect to see supercars and luxury models from Ferrari N.V. (Tii:RACE) and Mercedes-Benz parent company, Daimler AG (Tii:DMLRY), mentioned here, we wanted to look at one of the less likely players – Volkswagen AG (Tii:VLKAF). The parent company behind high-performance automaker Bugatti offers the Bugatti Divo, which costs at least $5.8 million. The quad-turbo 8.0-litre W16 low-production supercar cranks out 1,480 horsepower and goes from 0-60 in 2.4 seconds. It also boasts a top speed of a reasonable and responsible 236 mph.
If cruising on two wheels is more of your thing, Honda Motor Co., Ltd. (Tii:HMC) has you covered. For the low, low price of $185,000, the RC213V-S high-performance motorcycle features a 1,000 cc 4-valve V-4 engine and a top speed of approximately 222 mph. While the street-legal replica is capable of revving up to 12,000rpm, US models are limited to 9,400rpm due to sound noise laws. If you prefer to get there on your own steam without sacrificing style, LVMH Moët Hennessy - Louis Vuitton, Société Européenne (Tii:LVMHF) introduced the luxury bicycle for you. Created in partnership with Parisian manufacturer Maison Tamboite, the luxury bicycle is decorated with the iconic Louis Vuitton monogram leather features. While unlikely to be used in the 2022 Tour de France, it nonetheless carries a hefty price tag: $28,900.
For those without six or seven figures of disposable income, consider purchasing a simple T-shirt. After all, Americans popularized them as outerwear garments and purchase millions of them each year. Versace has a reasonably priced T-shirt for the fashion-conscious – or at least reasonable when compared to other items on this list. For just $775 and internet access, consumers can go online and purchase Versace’s Safety Pin Logo T-shirt, a 100% cotton women’s fashion statement that features the Versace brand logo emblazoned across the chest. For another $895, you can add a pair of Versace denim skinny jeans. Versace is a Capri Holdings Limited (Tii:CPRI) brand.
Like it or not, the luxury market is here to stay. It may ebb and flow but has absolutely withstood the test of time. As long as there are consumers with the means to purchase outrageously priced items, there will be no shortage of companies looking to fill that demand.