What’s On Our Mind in The World of Luxury? Very Important Customers (VICs)!
Recently, Gucci announced the opening of their Ultra High-End Boutiques targeted at the Very Important Customer (VIC) with products starting at a minimum of $40,000 all the way up to $3 million!
Mercedes Benz and Four Seasons Hotels are also in the news with similar initiatives.
Starting in April, Mercedes Benz will be staging the “AMG Racetrack Experience”. Car enthusiasts of various skill levels will be able to race behind the wheel of the latest AMG models in Portugal, Belgium, or Germany while putting racing champions in the passenger seat to provide guidance and feedback.
Four Seasons is taking a less adrenaline-filled but equally original approach. They are partnering with Vivrelle, a Shared Closet Service, giving hotel guests in Houston and Four Seasons residents in Los Angeles exclusive access to Ready-to-Wear products from Gucci, Prada, and Dior.
For luxury brands, VICs are an important group to focus on as inflationary pressures worldwide and a looming recession are putting the more aspirational luxury customer under duress. Some call this the “richsession”, as we have not yet seen a dent in spending from VICs, in contrast with what happened in the wake of the financial crisis of 2008.
With these customized VIC offerings and experiences, brands are clearly aiming to not just meet their VICs’ expectations but exceed them. We expect innovation in this area to reach new levels as the battle for loyalty, and continued engagement from VICs continues to scale new heights.
At the same time, it is important for brands to remember their other customers and prospects, keep them engaged, and ensure they have access to the brand. While tapping into current trends that maximize revenue and growth is a no-brainer, it is also vital to plan for the future and groom today’s mainstream luxury consumers to become the VICs of the future.
In this context, understanding your customers’ intimate desires and designing experiences to exceed them is crucial. At CXG, we have supported various brands in doing just that!