Germany's growing population of well-off consumers - those with Euro 50,000 or more in onshore liquid assets - is set to reach the 10 million mark by 2009, according to the latest market figures from independent market analyst Datamonitor.
The report, entitled 'Wealth Management in Germany', reports that Germany is currently home to more than 850,000 high net worth (HNW) individuals, and more than 7.2 million mass affluent (MA) individuals. This equates to 10% of the total German population. The combined liquid wealth of these two affluent consumer groups increased by 6% in 2004 to reach a total of Euro 1.5 trillion.
For clarity, Datamonitor defines high net worth individuals as being those with onshore liquid assets in excess of Euro 300,000 (including cash deposits in bank and building society accounts, ordinary stocks and shares, government and other bonds, and unit trusts and other collective investments). The lower 'mass affluent' tier includes those with liquid assets worth between Euro 50,000 and Euro 300,000.
However, the report sends a stern warning to players in the market with regard to changing attitudes among the wealthy client base: Wealth managers in the country must take action immediately if they are to retain their client base, because the needs and attitudes of wealthy Germans have changed significantly over the past few years.
Laura Meachem, financial analyst for Datamonitor, and author of the report, explained: "While clients are not generally seen to be moving more toward self-management of their portfolios, they are demanding more contact with their wealth manager and a better idea of the 'goings on' in their portfolio. Given that wealthy Germans are now more likely to change their wealth manager than they were before the stock market and economic downturn, this factor cannot be ignored."
The report provides market sizes and forecasts of the mass affluent and high net worth market in Germany, along with market assessments, competitor intelligence, and market forecasts. The report is available for purchase directly from Datamonitor.