“The dream is not to own a crown. It is to be a king.” These words by Gian Luigi Longinotti Buitoni, Ferrari North America’s former CEO, hold a deeper implication than most people realize. Years ago, luxury brands offered services like personalized shopping to a select few clients. These days, they are being offered to everyone across the board. Each client, after all, is important in these recessionary times.

So, what can the brands do now to offer an elevated experience to their customers, which is far from the ordinary?
Some luxury brands have been innovative and creative when it comes to offers and ideas that will not just entice the affluent to buy their products, but also make them feel special. Many of these offers help customers forge a sense of association with the brand, and engender loyalty towards it.

Companies, in fact, are reporting increased growth due to these exclusive luxury offers.
In India, one of the most relevant examples is the Oberoi Belvedere Club – a ‘By Invitation Only’ club initiated by The Oberoi Hotels & Resorts. Members are whetted by Chairman and CEO Mr PRS Oberoi personally through a long process, and are offered special privileges like access to all-equipped meeting space, concierge services, and a lot more.

Most Indian luxury retail brands not just offer exclusive amenities and deals to for their top clients, but also have private salons where their unique products can be showcased. But many have gone a step further. Ganjam, the Indian jewellery brand, not only invites its customers for special previews, but also to their annual events like Ganjam Jaipur Polo Trophy in London and Flights of Fantasy in Bangalore. Their retail team brainstorms on the event/launch and invites clients based on their interest.

The Oberoi Hotel – New Delhi

Last year, Indians also had the opportunity to experience the Amber Lounge after the Grand Prix F1 races. Amber Lounge invites the elite to hobnob with F1 drivers in a unique, one-of-its-kind celebration, after the races. Ms Sonia Irvine, founder and owner of Amber Lounge, says, “What really makes Amber Lounge is the service and attention to detail. We treat everyone as a VIP. There are no cornered off areas or queues on entry, and all drinks, including the world’s most prestigious Luxor and Belvedere, await your arrival.”

The Amber Lounge received a phenomenal response last year and will be back this year, again at The Claridges Surajkund. The sponsor for 2011, Mercedes-Benz, has been signed on for the lounge. Last year, the special guest was Lady Gaga. This year, we suspect it is going to be bigger!
Spinning the web
Most luxury brands face a dilemma: how to sell more and yet remain exclusive. In this era of economic turmoil, taking an extreme step might spell doom. Louis Vuitton, however, the most coveted, copied and sold luxury brand in the world, found a creative answer. The company has created a purchasing experience for customers that psychologist, consultant and author Peter Collett calls “fantasian.” “The surrounding is as important as the product,” Mr Collett said. The idea is to mix art and luxury to “create a little bubble” to make the clients feel special.

Based on this, LVMH has created a luxury apartment above its New Bond Street store in London. Louis Vuitton’s most valued customers now have exclusive access to this luxury apartment, which has three lounge areas adorned with artworks such as Basquiat’s Napoleonic Stereotype Circa 44 and pieces by Gilbert & George. Dinner parties are hosted and private suites used for viewing products and there are personal stylists available for consultation. Of course, all this is by invitation only.

Similarly, Fendi organizes shopping brunches for their top clients, where new collections are launched and limited edition products showcased. International high-end department stores are a part of this exclusive club game, too. Bergdorf Goodman’s ‘Incircle’ is a system that rewards you – the more you shop at Bergdorf Goodman or Neiman Marcus, the more points you receive, which ultimately leads to an elevated status within the exclusive Incircle. The Circle Four and Presidents circle, called the “in” crowd within the Incircle, receive one-of-a-kind private offers related to shopping, travel, exclusive invites, gift cards, and several such benefits.

Luxury connoisseurs even have their own social network now. After all, not everyone wants to join the ‘herd’ that Facebook represents! Best of All Worlds, an invitation only website, caters to the wealthy crowd. Users can meet other world travellers, make business connections, and find services such as nannies.
The need for exclusive clubs
Most of these services concepts are not overtly marketed. Brands offer an innovative product or service as a marketing strategy to create an unspoken loyalty program that the dedicated luxury shopper finds of great value. Such ‘clubs’ are particularly good for brands shying from media gaze. The elite experience they promise to provide, with tight privacy controls, make them desired. “I wanted to create a special event for the F1 community to have a good time, as I knew there was a need for a VIP nightlife experience where the teams, drivers, sponsors and guests could all enjoy. It had to be private, glamorous and fun,” says Ms Irvine.

 

Ferrari

Creating exclusive clubs not only encourages your clients to buy, but also helps you nurture a relationship with them, which would not have been possible otherwise. It leaves customers with a satisfactory feeling about getting true worth for their money. So, when Amber Lounge offers Luxor champagne with actual 24kt gold flakes, you know your money is well-spent. The Indian luxury consumer, especially, doesn’t mind spending money as long as each rupee is justified. Exclusive clubs and experiences might just serve as the right moves to crack such a hard nut!

More than just mere ploys to increase sales, these strategies are well-designed, elegant marketing plans that create a brand value which cannot be replicated or duplicated by competition. It’s a creative way of saying, ‘Thank You’ to a shopper who spends huge amounts on the brand, and leads to forging long-term relationship between the customer and the brand. It’s the finest form of CRM (customer relationship management) activity that only a luxury brand can afford to indulge in. – See more at: https://luxurynext.com/luxury-exclusive-club.html#sthash.SW4b78we.dpuf