The level of optimism among professionals in the global luxury industry has returned to 100, the same level of optimism seen at the start of 2014, according to the latest instalment of the Wealth-X Luxury Sentiment Survey Report.

The Luxury Industry Sentiment Index (LISI) declined from its peak in 2014 of 108, seen in the fourth quarter (Q4) due to high expectations for the holiday shopping season, indicating that the luxury industry is cautiously optimistic for the coming quarter.

The industry’s outlook for the whole year was more optimistic, with 92 per cent of respondents stating they expect to see an increase in revenue over the course of 2015, while less than 75 per cent expect to see revenue growth in the first quarter.

The quarterly Wealth-X Luxury Sentiment Survey polls senior-level executives from various sectors in the luxury industry, including watches and jewellery, art and collectibles, hospitality and services, planes and helicopters, and yachting and boating.

In addition to gauging the level of optimism in the industry, the report examines how the industry engages with ultra high net worth (UHNW) clients, specifically through affinity partnerships.

Some highlights from the report:

•    Competition was the biggest obstacle in Q4 2014, but respondents were still optimistic regarding their long-term performance and prospects;

•    90 per cent of respondents have plans to expand throughout 2015, with product launches being the preferred method;

•    72 per cent of respondents have used affinity partnerships to target UHNW clients;

•    78 per cent of respondents who used affinity partnerships felt that these were particularly helpful in expanding their customer base;

•    68 per cent of respondents thought that these affinity partners help increase the prestige/awareness of their companies;

•    61 per cent of respondents typically used one or two affinity partners at any one time, and 53 per cent focused on long-term partnerships as opposed to one-time events;

•    78 per cent of respondents plan on increasing their use of affinity partners in the future. - TradeArabia News Service