How do the rich live and what is the luxury goods market like in Poland?

In our country, a person who earns at least the equivalent of two average national salaries is considered wealthy. For many, the lower limit of wealth is a salary of 10 thousand net. The assessment of wealth varies depending on the respondent's current earnings, age, education and place of residence. One thing is certain, however – the number of people earning well has been growing steadily for several years. The analysis of reports on the affluence of Poles leaves no doubt about it.

The financial well-being of wealthy Poles drives the luxury goods market. Interestingly, last year's data shows that the luxury goods market amounts to approximately PLN 25 billion per year. In addition, these values are steadily growing. So what does the luxury goods market look like in our country?

The number one for years has been cars from the premium segment. The second place is occupied by branded clothing and accessories, such as jewellery and watches. On the podium there are also expensive real estate, luxury hotel and wellness services, as well as exquisite spirits. The common denominator for all these products and services is brand prestige, top quality, uniqueness, and reliability.

For the richest it is important to feel uncompromisingly comfortable in every area of life. A good example are luxury properties, usually located in prestigious districts. Such flats or villas are designed by architects and designers, have expensive equipment and all amenities. As the number of wealthy people increases, so does the demand for solutions allowing to protect accumulated wealth. Such solutions include alarm systems, personal and property security services or safes, which protect both against burglary and fire. 

Will the current situation have a negative impact on the luxury goods market? The history of previous crises shows that even in the most turbulent times there is room for luxury brands. What is more, they are gaining in importance. After all, although luxury products and services can be afforded by the few, members of the middle class also aspire to them. Why is this? First of all, these brands represent unique stories, extraordinary emotions, a sense of excellence and uniqueness.

According to the report "Luxury goods market 2019" prepared by KPMG, about 1.5 million of our compatriots earn more than 7 thousand PLN gross, and it is estimated that already in 2022 there will be about 2 million such people. The number of rich Poles, whose monthly income exceeds 20 or even 50 thousand PLN gross, is also growing. In addition, more than 30 thousand people can boast an income exceeding 1 million PLN gross per year. According to the report "Global Wealth Databook 2020", as many as 104 thousand Poles can boast of assets with a net worth exceeding 1 million dollars, and more than 11 thousand of our compatriots have assets with a net worth exceeding 5 million dollars, including several people whose wealth exceeds the dizzying amount of over 500 million dollars. What is the reason for this?

First of all, it is due to the so far good economic situation and low unemployment as well as dynamically rising salaries. Of course, we can speculate on how the current economic situation caused by the coronavirus pandemic will affect the wallets of the most affluent and wealthy Poles, but it is worth bearing in mind that not all industries have been affected by the recession. A model example is e-commerce, which in the current situation is recording increasing profits.

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