Highly wealthy people’s expectations regarding shopping 2024
These days, shopping is more than just buying something; it’s also about having a good experience, especially for the super wealthy customers who spend a large percentage of their income on a particular brand.
How do you give the highly wealthy people the best possible shopping experience?
Even though we do not see so often these wealthy people shopping, they contribute a lot for the brand’s profit. Millions of dollars are spent annually with their preferred brands and retailers by them, and they shop in exclusive areas and buy exclusive products. Referred to as “very important customers” (VICs) or “extremely important customers” (EICs) in the fashion industry, their percentage of revenue drives around 40% even though they only account for 2% of total customers.
It’s also becoming more competitive to wine, dine, and otherwise entertain wealthy VICs with lavish experiences in a market where aspirational buyers are cutting back on luxury purchases.
At major luxury companies like LVMH, revenue and profit growth currently comes from selling higher-ticket items, such as one-of-a-kind, unique pieces meant to entice VICs, rather than from increasing product volumes.
Because high jewellery naturally lends itself to personalisation, it is particularly in demand. In addition, jewelry tends to hold value better than soft goods and exudes permanence. Luminaire, a London-based company that offers VIC shopping and experiences for the 1 percent, reports that the overall amount spent by all of its clients on high-end jewelry increased from 40 percent in 2022 to 60 percent in 2023.
Thus, Tiffany’s chief geologist and vice-president of high jewelry demand and gemstone acquisition, Victoria Reynolds, informed Tamison that the company is purchasing the rarest stones for “once-in-a-lifetime acquisitions,” including a fancy vivid yellow rough diamond weighing 71 carats that came from the Ekati Mine in Canada.
According to CEO Anthony Ledru’s statement from the previous year, Tiffany’s luxury jewelry business has increased by 300 percent since LVMH purchased it in 2021.
VICs desire total secrecy and privacy when they shop for these unique products. A global trend is emerging from the private shopping areas that many luxury brands began to open during the pandemic in China.
If you visit the opulent Cidade Jardim shopping center in Sao Paulo, you can noticed that every recently opened store, along with a few established ones, had private shopping suites where patrons could enjoy wine and dining in secrecy from the curious onlookers.
Let’s investigate the latest Gucci VIP salon approach. The company has begun to open invitation-only stores where elite clients can shop in a more private, tailored setting with products costing over €40,000 and up to millions of euros for high jewelry. The company is attempting to reassert its luxury credentials and move upmarket. The business launched its first salon on Melrose Avenue in Los Angeles in April of last year, and it is currently bringing the idea to other countries.
By interacting with customers in this way, brands like Gucci can increase sales and cultivate personal connections with them that they hope will keep them coming back.
Time is scarce for those in wealth. Luxurious brands and retailers are fostering personal relationships with VICs by providing access to experiences that are beyond their means, as these consumers are known to be more willing to spend money with these brands.
“There always needs to be an element of ‘money can’t buy’ because our customers are so busy.We cannot just do a lunch.” said Isabel May, managing director and chief customer experience officer of MyTheresa.
The last thing VICs want is to be approached by someone trying to sell them a product; they are accustomed to people attempting to take advantage of them. The establishment of trust and relationships must come first and then the business will follow.
Conclusion: Wealthy VICs have certain expectations when it comes to shopping. Nowadays, the focus should be on the experience provided and not just the product.
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