Luxury and Loyalty: Are Major Houses Too Dependent on VICs?
Luxury and Loyalty: Are Major Houses Too Dependent on VICs?
In its latest study, CXG warns that luxury Maisons are becoming overly dependent on their Very Important Clients (VICs) and identifies a high-potential intermediate segment that remains largely untapped.
The Core Segment: A New Strategic Pool?
Historically regarded as the pillars of luxury, Very Important Clients (VICs) remain the most reliable cushion during turbulent times. They represent only 3% of the global clientele but generate up to 40% of total revenue, a tempting equation on paper, yet one that proves fragile in the long term, according to CXG’s new report, The Loyalty Code – Mastering Luxury Client Engagement.
Conducted between March and August 2025 across China, Europe, the United States, and the Gulf countries, the study reveals that the luxury customer base has shrunk from 400 million to 350 million people, and 58% have already stopped purchasing from a brand—mainly due to perceived imbalances in value for money and unsatisfactory experiences.
But between the ultra-VICs and aspirational clients lies a strategic opportunity: The core segment. Loyal and emotionally attached (97% say they love their luxury brands), these clients account for up to 30% of revenue, depending on the brand. Yet, 57% feel they are treated less favorably than VICs, and 70% of customer churn stems from a lack of personalization.“ The paradox is clear: VICs, saturated and inclined to negotiate everything, capture attention, while a loyal and profitable segment remains underserved,” says Christophe Caïs, founder and CEO of CXG.
The study also highlights significant regional disparities: Americans denounce unfair treatment depending on the level of spending, the Chinese regret a lack of personalization, while Europeans value the stability of the human connection with a dedicated advisor. In the Gulf countries, service expectations and emotional attachment are reaching new heights, making customer relations a real cultural issue.
CXG thus advocates for a more balanced approach: maintaining VIC-level excellence while granting the core segment more recognition and opportunities to elevate their status. It is not a question of diluting the VIC programs, but of creating a real relational level,” insists Christophe Caïs. Legible benefits, useful services, explicit upward trajectory. Preserving VIC excellence, yes – and, at the same time, equipping this mid-market segment creates a powerful leverage effect: more retention, more upselling, more future VICs. Treated as a strategic asset, it converts a costly paradox into a sustainable competitive advantage.”
Originally Published in French in Journal Du Luxe.
Written by Anaïs Clavell.
