For America’s wealthiest shopaholics it pays to be a big spender.
Whether it’s Gucci, Louis Vuitton, Fendi or Prada, luxury brands are showering their most loyal customers with extravagant gifts — from court-side seats at Wimbledon and all-expense paid dinners in royal palaces to birthday parties and over-the-top Christmas presents. Some top shops will even deck out your home for your next party.
“There are many perks like being able to go to fashion shows and going on adventures that relate to the story of the brand,” said Los Angeles-based Christos Garkinos, 60, who operates the live-streamed luxury fashion sales platform Covet by Christos and spoils his top shoppers.
Garkinos says the flood of special invitations for international trips, special dinners and star-studded events are constant once you are “in” with a top luxury retailer — and that means spending at least $500,000 to well over $1 million a year with just one brand.
“One percent of luxury buyers are sometimes up to 40% of someone’s business,” he noted. “So it’s important that you keep them happy.”
Philanthropist Amy Heart Green is one such customer. The mother of two young children, she splits her time between her homes in NYC, the Hamptons and Aspen, and she gets what she gives.
“I was getting an award for philanthropy work and Chopard threw a gorgeous dinner for me and 65 guests at Casa Tua here in Aspen,” said Green, who is married to Gary Green, a businessman and sports team owner who father founded commercial real estate giant SL Green. “They had all their jewelry on display. They gave me this gorgeous pair of earrings. They paid for the entire dinner. And then they have these beautiful crystal candles and gift packages for all of the guests. It’s a wonderful way to take care of all my people that are so philanthropic and really great donors.”
For a brand like Chopard, celebrating someone like Green makes dollars and sense. It exposes them to her rich social network, which is filled with potential customers, and a company can potentially write off such events as charity. (Chopard didn’t respond to our request for comment).
When Green, whose The Green Vision foundation raises funds for environmental causes and wildlife preservation, throws a fundraiser, or even a cocktail party, she has luxe labels on speed-dial, all eager to come decorate her homes for a special occasion.
“I’ve been doing this for a long time, and I shop with all these different brands,” said Green, who’s also partied with Italian fashion house Max Mara and natural skincare company Tata Harper. “They know what I do and they are excited to be a part of it. I do things for them too. I’m always sending them great clients.”
In the ultra-competitive luxury retail arms race, authentic branded experiences, excursions and events for people who already have it all are replacing the old-school department store-style systems of points and discount tiers that once rewarded shoppers.
“For a long time, retail loyalty programs were like, ‘You shop here, we give you rewards, and then you cash in your rewards.’ But I don’t think that gets people coming back to the store. It’s very impersonal. You just felt like you were being rewarded, because of how much you spent. That’s not a true VIP experience,” said Matt Shachter, a retail expert and the VP of Marketing at Endear, a customer relationship management system that has worked with companies like Reformation, Glossier, and Todd Snyder.
“Today, what we are seeing brands move towards is the personal touch — and shoppers demand it. Shoppers are looking for exclusivity. They want brands to recognize them as an individual, as a person.”
He added that the ability to collect and analyze customer data is partly responsible for the move towards hyper-specialized customer experiences. Not only do brands know what you buy, they know your birthday, your style, what you do, who your friends are, where you live, where you travel and frankly a terrifying amount more.
“We can collect as much data as you want and use that constructively to build a unique experience,” he said.
Garkinos sees that playing out right now in fun and unique ways.
“You don’t just see clients being invited to fashion shows, you see bigger clients walking in shows from brands like Miu Miu,” he said. “Brands do birthday parties, they do anniversary parties. It’s much more personal.”
However he cautions that no matter how over-the-top the reward, it can’t feel transactional.
“It can’t be a pay-to-play proposition.” he says, noting that he celebrates his cultivated consumers with experiences that they might not be able to easily facilitate themselves in destinations like Dubai, Paris and London. Recently, he organized a private VIP dinner in Kensington Palace. He added, “You’re building community.
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