The super-rich shop in a private world of luxury retail that most of us will never see or experience.
They demand privacy and discretion, so they have access to private luxury designer lounges and by-invitation-only events offering a premium shopping experience. The ultra-wealthy seek out exclusive items unavailable to the general public, spending millions annually on their preferred high-end brands and retailers.
Although the super-rich shopper only makes up 2% of total customers, they drive about 40% of luxury retail sales.
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Tourists purchasing luxury goods represent a significant portion of the industry’s luxury sales, often taking advantage of favourable conversion rates and tax exemptions.
As global travel is expected to surpass pre-pandemic levels in 2024, luxury boutiques such as Louis Vuitton, Dior, Gucci, and Omega located in the Fairmont Vancouver Hotel will continue to attract destination-focused shoppers.
After the pandemic, discretionary spending has significantly increased. Especially on luxury goods and travel, as more people choose to enjoy life rather than die rich.
Jewelry
The super-rich are now buying more jewelry as it is very personalized. They invest in jewelry for a sense of permanence and long-term value. Unlike soft goods, jewelry holds its value over time and is a lasting investment.
Tiffany has been making once-in-a-lifetime acquisitions in the rarest of stones to appeal to ultra-rich buyers. Last year, CEO Anthony Ledru announced that Tiffany’s high jewelry business had grown by 300% since being acquired by LVMH in 2021.
Private Super-Rich shopping
During the COVID-19 pandemic, several high-end brands in Canada and the USA began offering private shopping experiences to their customers. This trend is now gaining popularity across the globe, especially in Asia.
Luxury brands offer private shopping suites for wealthy clients to enjoy exclusive shopping and dining.
Engaging with customers in this way can lead to increased spending and foster one-on-one relationships with customers, encouraging them to return.
Ultra-rich are time-poor
The wealthy have plenty of money to buy luxury goods, but the real challenge is to get time with them.
Today, anyone can book luxury vacations and Michelin-starred dining experiences online. So, luxury brands and retailers offer unique experiences even their money cannot buy to build personal relationships.
Dolce & Gabbana recently held a private fashion event for its top clients in their connecting villas high above Portofino, Italy. As their clients’ yachts were moored in the bay below, the week-long Couture fashion show was open to less than 100 invites.
You will not find any images online of their audience as they were required to surrender their phones and cameras, guaranteeing total privacy. For the wealthy, a simple lunch is not enough.
Emotional experiences
When selling luxury, creating emotional experiences that establish a positive relationship with clients is important. Super-rich shopping events are exclusive and take place in unique locations.
Today, luxury retail emphasizes emotional connection, offering exclusive in-store experiences that many can only dream of.
It’s no wonder why so many people dream of indulging in this world of luxury.
