7 Keys to Marketing Luxury Brands to Ultra High Net Worth Individuals
Millennials and Generation Z are widely projected to account for more than 40% of all luxury good sales by 2025. Yet that sizeable piece of the pie may be largely subject to shifts in the economy. Whereas the ultra-high-net-worth individual (UHNWI) has the means to spend at will on luxury even in a down market—making them coveted above all other demographics. In the midst of 2020’s historic drop in retail, the UHNWI was largely responsible for keeping ships sailing for many luxury brands—large and small—based upon how well they marketed to these individuals. With a full economic recovery from the COVID pandemic projected to span several years, a dedicated focus on courting and retaining UHNWIs should become a primary focus, apart from winning the attention of the broader consumer groups whose spending is more so shaped by circumstance. A character profile that cuts across all segments of age, geography, gender, and background—the UHNWI is however not a mystery, and certainly not a unicorn. Substantial research has gone into tracking and defining their traits. And while they do spend an average of 3 hours a day on social media, their smartphones, tablets and laptops are hardly the only place they shop. Luxury brands must have fully integrated online and real-world channels to keep pace with a world increasing fluent in e-commerce and expecting to be wowed by time spent in-store. Allow us to outline a few key principles of reaching the UHNWI and maybe dispel a few misconceptions along the way.