I thought you might be interested in some thoughts on the “latest luxury trend – fractional ownership” – provided by Aaron Weddell, associate editor of Fractional Life and contributing editor to JustLuxe (www.justluxe.com):
The “want-it-all, want-it-now” generation is moving away from the more traditional methods of obtaining the accepted societal demonstrations of wealth—luxury vehicles, exclusive vacation properties and private aviation, amongst others. They still aspire to such end-user heights, but it is not simply a case of blind purchasing to satisfy consumer desires, but look to balance their spending between experiential reward, financial outlay and, most topically, environmental impact.
This shift has created a consumer breed referred to by trend-watching gurus as ‘transumers’ or ‘fractional lifers.’ This group values not the actual full ownership of goods, but instead focus on the experiences that those goods can provide and the short-term reward, leading to the rapid rise in popularity of fractional ownership.
Fractional ownership and asset sharing gives you an ideal way to get the most out of your investment by purchasing only the shares or time you require from an asset. All other aspects are split - both the benefits and the costs, amongst a limited number of Shareholders or Members. Fractional ownership means you physically own a percentage of the asset until you decide to sell.
To take ownership of a luxury yacht as a simple example- the purchase and ownership costs of running a yacht are terribly high and one would only get enjoy the more pleasurable side of ownership- actually using your yacht- a handful of times per year. So why not split the cost between a number of people and share the downsides of ownership without sacrificing the time you get at sea?
Other fractionals that do not lend themselves traditionally to fractional ownership and instead offer club membership based asset sharing schemes include luxury goods from designer handbags to £150k+ supercars for a fixed annual cost. Supercar club membership for instance negates the issue of lengthy waiting lists, running costs and depreciation but still sees you behind the wheel of the world’s most desirable cars without the financial guesswork.
Although broader acceptance of fractional ownership is only just filtering into the daily life of many consumers already for some fractional lifers fractional ownership is, as the appellation suggests, a way of life.
For more on fractional ownership trends, visit Forecasting 2008: Six Fractional Luxury Trends To Watch
The “want-it-all, want-it-now” generation is moving away from the more traditional methods of obtaining the accepted societal demonstrations of wealth—luxury vehicles, exclusive vacation properties and private aviation, amongst others. They still aspire to such end-user heights, but it is not simply a case of blind purchasing to satisfy consumer desires, but look to balance their spending between experiential reward, financial outlay and, most topically, environmental impact.
This shift has created a consumer breed referred to by trend-watching gurus as ‘transumers’ or ‘fractional lifers.’ This group values not the actual full ownership of goods, but instead focus on the experiences that those goods can provide and the short-term reward, leading to the rapid rise in popularity of fractional ownership.
Fractional ownership and asset sharing gives you an ideal way to get the most out of your investment by purchasing only the shares or time you require from an asset. All other aspects are split - both the benefits and the costs, amongst a limited number of Shareholders or Members. Fractional ownership means you physically own a percentage of the asset until you decide to sell.
To take ownership of a luxury yacht as a simple example- the purchase and ownership costs of running a yacht are terribly high and one would only get enjoy the more pleasurable side of ownership- actually using your yacht- a handful of times per year. So why not split the cost between a number of people and share the downsides of ownership without sacrificing the time you get at sea?
Other fractionals that do not lend themselves traditionally to fractional ownership and instead offer club membership based asset sharing schemes include luxury goods from designer handbags to £150k+ supercars for a fixed annual cost. Supercar club membership for instance negates the issue of lengthy waiting lists, running costs and depreciation but still sees you behind the wheel of the world’s most desirable cars without the financial guesswork.
Although broader acceptance of fractional ownership is only just filtering into the daily life of many consumers already for some fractional lifers fractional ownership is, as the appellation suggests, a way of life.
For more on fractional ownership trends, visit Forecasting 2008: Six Fractional Luxury Trends To Watch
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