Luxury brands woo top clients with lavish trips

Luxury brands woo top clients with lavish trips

In the world of luxury retail, a new trend has emerged: the rise of the Very Important Customer, or VIC. These high-net-worth individuals are the driving force behind the luxury industry, with some brands relying on them for up to 40% of their revenue. To cater to these discerning clients, luxury brands are pulling out all the stops, offering lavish trips, exclusive events, and personalized service.

For VICs, the luxury experience begins with invitation-only events, such as fashion shows and private viewings. They are treated to VIP access, with perks like front-row seats, backstage tours, and meet-and-greets with designers. Some brands even offer all-expenses-paid trips to exotic locations, complete with luxury accommodations and personalized concierge service.

One VIC, who prefers to remain anonymous, has spent six figures with Louis Vuitton in a single year. She says that the brand's VIC program has provided her with experiences that "money can't buy," such as meeting K-pop idols and actresses, and attending exclusive events. "These are the perks that make us feel better, and why I support this brand and not another," she says.

Another VIC, Sherry Ang, has been treated to a range of exclusive experiences by brands like Chanel, Hermès, and Louis Vuitton. She has attended private viewings, fashion shows, and even visited the Chanel watches and fine jewelry factory in Geneva. "From private airport transfers to having a dedicated staff member travel with us, almost like a personal assistant, the whole experience is incredibly seamless," she says.

According to Gogo Cheng, founder and managing director of global client loyalty consultancy Gogo Cheng Consulting, the VIC model is becoming increasingly important for luxury brands. "The brands that win loyalty do not have better products, because if you look at that price point, you can't say one product is better than the other," she says. "Closing the deal comes down to connections."

Cheng notes that the VIC model is not just about catering to the top 1% of clients, but about creating a sense of community and belonging among all clients. "The way that brands treat and take care of the top 1% is actually very applicable to everyday customers that walk into a store," she says.