The nuances of marketing to today’s luxury landscape are many – from quiet luxury to designer price increases to a new generation becoming more influential in this space. While catering to high net-worth (HNW) individuals has always required a thoughtful strategy, marcomms pros are refocusing on what really matters to these clients today. Read on for their take on best practices for communicating with the luxury market.  

Put VIPs First

“Prioritize your VICs (very important clients). For many luxury brands – Baccarat included – the top-spending clientele make up a majority of the business. Thus, think of ways to keep these clients engaged in the brand, ensuring they feel appreciated and in-the-know about what’s happening at the brand. Incentives, dedicated outreach, and invitations to events and activations are ways to keep your brand fans feeling the love.” Reid Myers, Senior Director, Head of Marketing, Baccarat

Baccarat’s inaugural Petit Slam at Baccarat Hotel New York

Connect IRL

“Luxury brands are continuing to focus on how to expand their audiences in new ways. The annual Knight Frank Wealth Report recently listed the 10 most popular investments of passion, as well as insights into the key motivators for UHNWIs to collect luxury items. Interestingly, one of those key motivators includes the feeling of belonging to a community – a behavior which Sotheby’s is not only aware of, but represents a key pillar of our luxury growth strategy.  

The onset of the pandemic necessitated a pivot to the digital, yet, perhaps as a corollary to this, the hunger for in-person experiences is more potent than ever. Cars, watches, wine and spirits all benefit from strong collector communities, so we’ve made the recent investment to offer premium client experiences. Just last year, we organized on-location experiences in Las Vegas for the Formula 1 Grand Prix, and the second edition of the exclusive watch gathering Rolliefest, in which 175 watch enthusiasts from around the world traveled to NY to come together and talk about watches (with no commercial element tied to it whatsoever) – they simply relished the ability to exchange with like-minded people who share their passion."

Rolliefest at The Rainbow Room in New York City, September 2023

"Earlier this month, more than 8,000 people attended ModaMiami — Miami's newest event showcasing the world's most incredible cars, world-class cuisine, luxury goods, and entertainment, at the iconic Biltmore Hotel in Coral Gables. Not only was there a special two-day car auction, but 150 of the rarest, most desirable cars were presented on the grounds of the Biltmore’s iconic golf course, creating the ultimate car show. There was truly something for everyone – whether you were a car enthusiast looking to test-drive the newest hypercars, wanted to purchase a vintage Hermès handbag (courtesy of Sotheby’s marketplace) or just mingle with friends at the exclusive Casa Tua lounge.” Amanda Bass, VP, Head of Luxury Communications, Americas, Sotheby's

Early Adopters Win

“The relevance of a luxury brand lies within the power and strength of its community. In an increasingly algorithm-driven world, we are building communication strategies that emphasize new moments of discovery while deepening engagement within a brand’s existing ecosystem. As luxury consumers seek and attach value to intangibles like discovery, inspiration and shared ethos, we are helping brands prioritize customer resonance and moments of authentic connection within a cohesive, distinctly articulated brand story." 

"As the HNW audience evolves with the introduction of new generations increasing their economic stake—and influence—in the luxury marketplace, luxury brands that prioritize adaptability and early adoption stand to outperform brands relying on storied heritage and legacy alone. This requires an evolved communication strategy that responds to the new ways in which luxury consumers engage with brands, including new factors influencing spend patterns like value alignment and brand authenticity.” Suzanne Rosnowski, CEO & Founder, Relevance International

First Impressions Matter

“Up until now, the luxury industry has managed to maintain the illusion of exclusivity despite dramatically increasing its market size. But as some of the champagne bubbles have settled for the industry, even high-net-worth customers are beginning to resist the increasing cost of luxury products. That is why first impressions have to be even stronger so that clients are intrigued and want to learn more. Great first impressions succeed with compelling brand stories. Stories are all that brands have, and luxury brands have to adjust their storytelling in a way that provides their audiences with a strong point of view, convincing beliefs, and well-defined core values across all customer touchpoints.” Scott Kerr, President, Silvertone Consulting

Master Your Voice

“First off, you’re speaking to a smaller audience. Luxury items appeal to a much smaller audience than regular commercial ones, so to drive sales and PR campaigns, more strategic specific targets are used. Finding the brand’s target audience and who they will interact with is crucial. A mass marketing approach that appeals to everyone is not appropriate, because not everyone can afford luxury items. High-end products and services are custom tailored to narrow audiences who have the discretionary income necessary to afford luxury items.  In other words, the goal of high-end brand marketing is not to generate mass appeal and convert everyday people into paying customers. You have to have a much narrower focus."

Private Dinner in Dallas. Credit: Kaitlin Saragusa

"Secondly, luxury brands have different objectives. The goal is to convince a comparably small target group of prospective customers to recognize the value offering, become paying customers, and prove loyal across the long haul. This takes time. 

Lastly, luxury has a distinctive voice. Whether it is speaking across culture lines – which is very typical in the luxury space – how you convey your message is of paramount importance. The luxury voice is educated, informed, accurate and precise. It conveys a message AND a vibe. It needs to be an authority voice, a leader. It is polished.” Suzanne Droese, Principal & Founder, Droese Public Relations

Be Strategic with Trends

"Specializing in the ultra-luxury arena for brands that cater specifically to HNW (high-net-worth) and UHNW (ultra-high-net-worth) individuals we are often asked if we are seeing trends in this arena. As it pertains this discerning and rather difficult-to-impress consumer, we would advise that trends are to be observed with caution. Many brands, especially those coming to market in the premiere category arena, are on a mission to disrupt an industry. But also, surprisingly, brands with heritage that are fully matured, but perhaps are looking over their shoulder at the newcomers or being pressured by leadership to urgently take action to step up sales - make the fateful mistake of looking at what is trending versus moving into action with a deep-rooted plan that will serve to engage and ignite their existing loyal customers and draw qualified prospects.” Shamin Abas, Founder and President of Shamin Abas Communications & Experiential Marketing for the World’s Finest Brands