By Marco Passoni
In the luxury industry, understanding and catering to the top 1% of clients isn’t just an option—it’s a necessity. Known by various titles, ranging from Very Important Clients (VICs) to High-Net-Worth Individuals (HNWIs), or Elite Clients, these vital consumers collectively possess a net worth of $57 trillion – greater than the combined GDPs of the US and China. Their role in the luxury market is critical; they are a cornerstone of our market.
Indeed, since these clients can account for up to 40% of a luxury business’s revenue, they provide a stabilising force for the sector against economic uncertainties. Beyond this, they are trendsetters and brand ambassadors – their preferences and endorsements shape market trends and influence the perception of your brand.
For luxury brands, catering to the top 1% involves more than just meeting expectations—it’s about exceeding them
For luxury brands, catering to the top 1% involves more than just meeting expectations—it’s about exceeding them. Angela Ahrendts, former Senior CEO of Burberry, wisely advised that treating all customers with the highest regard helps establish a culture of excellence. When a brand sets a high standard for its VICs, it fosters a culture of exceptional service that benefits all customer interactions, creating a ripple effect of quality and satisfaction throughout the brand.
Getting this right is, for me, the Art of Clienteling.
We know what it is these shoppers seek. They demand ultra-personalised service that acknowledges their individuality while providing global recognition. Their desire for immediate gratification means they expect exclusive products and services without delay. Interestingly, many of these top clients are more loyal to their Client Advisors than to the brand itself, with a significant number willing to follow their advisors to new brands. This highlights the importance of nurturing strong, personalised relationships.
Since VIP clients can account for up to 40% of a luxury business’ revenue, they provide a stabilising force for the sector against economic uncertainties
Moreover, these elite clients value being part of an exclusive community. They are drawn to experiences that connect them with like-minded individuals and resonate on a personal level. Brnds in the modern market must go beyond products and even beyond experiences to curate a community and lifestyle which speaks to their consumers.
At 2.0 & Partners, we recognise the vital importance of mastering clienteling to engage effectively with the top 1%. Through several specialised workshops, we equip luxury brands with the strategies and insights needed to build and sustain valuable relationships. By focusing on creating exceptional experiences and personalised service, we help brands elevate their client engagement and achieve excellence across all customer tiers.
In the competitive world of luxury, the emphasis on the top 1% is more than a strategy – it’s a path. It is about setting standards of service and achieving long-term success. By fostering a deep understanding of these clients’ desires and expectations, luxury brands can not only secure a stable revenue stream but also cultivate a loyal and influential customer base that champions the brand and serves as a benchmark for innovation and quality.
In the competitive world of luxury, the emphasis on the top 1% is more than a strategy – it’s a path
The benefits extend well beyond financial return (as all good strategizing should). They are about building brand equity and reputation, creating a halo effect that attracts new customers across all tiers. The luxury market thrives on the perception of exclusivity and excellence, and the top 1% play a pivotal role in maintaining and enhancing this perception. Their experiences and satisfaction often become a measure of a brand’s success in the public eye.
As the luxury market continues to evolve, the role of the top 1% in shaping the future of luxury cannot be overstated. Brands that excel in clienteling not only secure a key revenue stream but also set the standard for customer experience in the industry. The insights and strategies provided by 2.0 & Partners in their various workshops are invaluable for any luxury brand seeking to excel in this domain. If you would like to learn more about our insights and expertise in this field, please contact me, I would be delighted to speak with you.
Marco Passoni has decades of experience in the travel retail sector. He has spent the majority of his career in senior leader positions throughout the market, including a 12-year tenure as CEO of a leading international Duty Free distribution company and a further 8 years running a retail firm that operated fashion mono-brand stores in several international airports.
Today, as Senior Executive VP and founding partner of 2.0 & Partners, he leads the company’s efforts in developing and innovating services which create new opportunities and partnerships for all members of the travel retail Trinity. A former elite-level sailor, with a World Championship to his name, Marco now spends much of his time airside, experiencing the changing travel retail industry first-hand, to better guide partners and clients on the best way to do business in this vibrant and unique market.
