Luxury hunting for Very Important Clients: they are 1% but spend 200 times more than average

There are 600,000 of them and they spend at least EUR 50,000 a year on luxury goods, totalling EUR 213 billion. They are increasing by an average of 10% each year and will reach one million by 2030. They represent less than 1% of luxury customers but generate 21% of global consumption in the category, spending 200 times more than the average customer. Not only that, their shopping is immune to the global economic slowdown and the consequences of geopolitical crises.

They are the Very Important Clients (Vic) and are at the very tip of the pyramid of luxury goods buyers: the tenth edition of the Altagamma Consumer and Retail Insight has drawn their identikit. "Even in a period of extreme market uncertainty and volatility and low consumer confidence, the high-end segment shows a prospect of growth, albeit moderate - underlined Matteo Lunelli, president of Altagamma -. Consumption is sustained by top clients, who are pushing companies to refine and improve their entire offer, from services to the excellence of their creations. To meet the expectations of this increasingly demanding clientele, companies will have to continue to invest in technology and in attracting talent'.

Expectations that were identified, and updated, by the tenth edition of the Boston Consulting Group's True-Luxury Global Consumer Insights report: impeccable service, extreme personalisation, a sense of belonging to a community, almost as if brands were a second family with whom they had a relationship anywhere in the world. An almost unshakeable trust in their advisors, who help them choose what to buy. "The 'Beyond Money' group of buyers are the most relevant for brands," explained Filippo Bianchi, managing director and senior partner of Bcg. "In this group we find the 'Very Important Clients', who buy on average products from 10 brands, but are identified and treated as such by only 2 or 3 of them: a potential that could be exploited by brands with a more sophisticated segmentation of the target.

It is becoming more and more strategically crucial to have adequate professional profiles to interact with the Vic, so it would also be urgent to launch dedicated academies, as both Antonio De Matteis, Kiton's CEO, and Aldo Melpignano, founder of Egnazia Ospitalità Italiana, stressed. De Matteis recalled how his family (the brand was founded by his uncle Ciro Paone in 1968) has always been closely involved in relations with these special customers: 'For example, in this period we receive many visits from customers staying on the Amalfi Coast, Capri, and Ischia, and we also accompany them on special experiences in our area. We feel a strong desire to understand how a product is made, how it is created, and for this reason we sometimes take them on visits to our factories'. A characteristic also confirmed by Melpignano: 'These customers do not want to be treated with deference, but with authenticity, they want to know and to draw opportunities for personal improvement from their experiences. It is precisely the hotellerie, moreover, that is the most evolved sector in customer care and its skills are being extended to other sectors.

An authentic, personalised and impeccable experience is what is expected when one crosses the threshold of a boutique: "Stores are increasingly larger and more complex in terms of offer, conceived as true destinations in the cities where they are located," noted Luca Solca, senior analyst at Bernstein and author of Store Wars, an analysis on the evolution of luxury retail. The last two years have witnessed a real race to conquer the best locations, which are increasingly rare, expensive and concentrated on streets such as Fifth Avenue in New York or Montenapolone in Milan, which are supplanting streets that until a few years ago were considered valid alternatives, such as Madison Avenue and Via della Spiga. The large groups can also benefit in terms of value growth from these huge investments, not the small and medium-sized companies, which instead of chasing the big boys should think about alternative locations or formulas: for example, focusing on prestigious flats, rather than shops, to accommodate the Vic'. This is what Moncler did years ago, when it pioneeringly chose Avenue des Champs-Élysées for its Paris shop: that architecturally and historically valuable street is now a direct competitor to Rue de Fabourg Saint Honoré or Avenue Montaigne. And Lvmh is also investing there with the first Louis Vuitton hotel, expected to open in 2026.