What: Luxury brands like Gucci, Mytheresa, and Tiffany & Co. are adopting sophisticated strategies to engage and retain the top 1% of earners, a demographic that drives a significant portion of luxury sales.

Why it is important: As the luxury market experiences a slowdown, attracting and maintaining the loyalty of very important clients (VICs) is crucial for brands aiming to sustain growth. These ultra-wealthy customers demand elevated, emotional, and experiential engagements, making the competition for their attention fierce.

The luxury sector has seen a boom in spending post-2020, largely propelled by the ultra-wealthy, who are less affected by economic uncertainties. With the broader market now slowing, luxury brands are focusing more on the top 1% of earners, implementing targeted strategies to win over and retain these very important clients (VICs). Gucci, Mytheresa, and Tiffany & Co. have each developed unique approaches to deepen relationships with these elite customers:

• Gucci has introduced by-appointment stores and private floors in flagship locations, offering personalized experiences and exclusive products to its most important clients.

• Mytheresa enhances client loyalty through a series of high-profile events and collaborations, providing unique experiences that go beyond what money can buy.

• Tiffany & Co. focuses on ultra-exclusive high-jewelry offerings with an emphasis on personalization, allowing clients to commission bespoke pieces and experience unparalleled service.

These strategies highlight the importance of creating personal connections and unforgettable experiences to foster loyalty among the ultra-wealthy. By focusing on emotional engagement and exclusivity, luxury brands can differentiate themselves in a competitive market and secure long-term relationships with their most valuable customers.

Case Study, how brands sell luxury to the 1% (Article)

Case Study PDF