How ultra-luxury brands are charming the 1%

As prices rise and customers grow more selective, mainstream luxury players like LVMH, Burberry, and Gucci are seeing slower sales. But a different story is unfolding at the top end of the market. For brands catering to the 1%, business is booming. Ultra-luxury marques are bucking the industry downturn thanks to their focus on the most elite clientele, also known as high-net-worth individuals (HNWIs). The timing couldn’t be better: in 2024, the number of global HNWIs climbed by 4.7%, and Équité Research predicts that by 2025, UHNWIs — just 2% of total luxury consumers — will account for more than 35% of industry spending. In some sectors, that share is even higher. By prioritizing hyper-personalized experiences, bespoke services, and a level of intimacy inaccessible to the masses, these brands are weathering market challenges. However, with rising expectations and mounting costs, is this a sustainable strategy? Not just any luxury consumer HNWIs and UHNWIs (ultra-high-net-worth individuals) transcend the typical luxury spender. Defined by annual spending reaching up to seven figures, these deep-pocketed clients are repeat buyers whose relationships with brands extend beyond transactional purchases, often evolving into personal connections with designers and founders. “A top-tier customer at Grace Chen typically spends between $50,000 to $100,000 or more annually, representing the brand’s most dedicated and high-value customers,” says Chinese fashion designer Grace Chen. With customers willing to splurge, expectations leave no room for compromise. To keep their most valuable clients engaged, brands like Grace Chen are going beyond peddling products — they’re selling a lifestyle. Exclusive perks fueling brand loyalty Private members’ clubs are one of the most effective community strategies for sustaining growth, says Scott Kerr, managing partner at Silverstone Consulting and host of The Luxury Item podcast. “Luxury consumers are more tightly interwoven with brands and buying into their values and stories,” Kerr explains. “Private client communities allow for authentic human relationships with like-minded customers, making your brand story talkable and fueling conversations across channels.” Stefano Ricci’s Stefano Ricci Club, for example, is an invitation-only membership program rewarding its top 250 clients who spend over €50,000. Instead of offering discounts, members receive a welcome package and access to exclusive experiences, from wine tastings to limited-edition pieces. Meanwhile, Grace Chen’s GC Girls program offers elite, tiered perks. Clients spending $15,000 receive The Gracefulness Card, which grants 10% off couture designs and access to exclusive event invitations. Those who spend $140,000 receive The Glamour Card, which includes 30% off couture designs, front-row seats at shows, and a bespoke gown valued at $10,000. Zegna is similarly leveraging exclusivity with Villa Zegna, which opened its second New York location last year. The weeklong, invite-only club caters to the brand’s top spenders, hosting VIPs, press, and celebrities for curated talks, bespoke fittings, and intimate dining experiences. Well-heeled, well-traveled Last year, luxury consumers prioritized travel and experiences over material goods, according to Bain & Co. As the focus shifts from possessions to prestige, ultra-luxury brands are doubling down on exclusive retreats to charm their VICs. “Experiential luxury has been growing at a much higher rate than personal goods for some time, with travel events that involve luxury partnerships becoming an industry standard,” says Scott Kerr. Stefano Ricci’s Explorer series has flown clients to destinations like Egypt, Iceland, and Mongolia, immersing them in five-star hospitality, Michelin-starred dining, and off-the-beaten-track adventures. Part research trip, part reward, these exclusive tours serve as the brand’s secret weapon for keeping top clients engaged. “Our VICs don’t just need another suit; they need an experience,” Niccoló Ricci, CEO of Stefano Ricci, told Jing Daily last year. “They need to spend time and learn something, which is what we’re trying to offer.” Kerr notes that these high-touch experiences create emotional connections that foster long-term brand loyalty. “There’s no better way to woo top clients than whisking them to a private event or luxury tour experience that money can't buy,” he says. Grace Chen’s Fashion Travel series takes a similarly curated approach, inviting GC Girls on nine-day luxury getaways that include bespoke styling, daily outfit selections, and professional photography and videography. Past trips have taken clients to Egypt and Mexico, with Holland next on the itinerary this April. Panerai is also making adventure a cornerstone of its VIC strategy. As part of its Submersible series last year, the watchmaker took five owners of its exclusive Ecopangaea Tourbillon GMT 50MM Mike Horn Edition on a private Arctic expedition aboard the 35-meter sailing yacht Pangaea, accompanied by explorer and brand ambassador Mike Horn. Part of the posse There’s more to the story than swanky travel rewards. Every year, Grace Chen’s GC Girls are invited to walk in her runway shows. At last month’s Pre-Spring 2025 show during NYFW, held at Chen’s alma mater, the Fashion Institute of Technology, clients were encouraged to invite their mothers or daughters to join them on the runway. “Bringing clients along was essential to showcase the brand’s story and origins, helping them understand its journey and values. It also provided an opportunity for the audience, media, and the world to witness the diversity, beauty, and power of the GC Girls,” says Chen. Other luxury brands are taking note. For its Fall 2024 show, Miu Miu invited 70-year-old Shanghai-based doctor Qin Huilan, a longtime Prada Group client, to walk its runway. The new era of luxury? Tapping into UHNWIs’ passion for travel and experiences is proving to be a winning formula, helping ultra-luxury brands defy the industry downturn. “In 2023, the brand's sales performance rebounded to pre-pandemic levels, even slightly surpassing 2019 figures,” says Chen. “A major highlight of 2024 is the brand’s re-entry into the U.S. market, which now accounts for 30% of total revenue.” With this recent success paving the way, a U.S. flagship store is on the horizon. Stefano Ricci closed 2024 strong, with Q3 revenues up 11% to €174 million, fueled by demand from the Middle East. Meanwhile, Zegna’s Q4 revenue rose 8.4% YoY to €353 million, bringing full-year revenue up 4.9% to €1.2 billion, thanks to robust U.S. sales and strong direct-to-consumer growth across Europe, the Middle East, and Africa. As ultra-luxe brands resist massification, catering to HNWIs is clearly paying off. But will this strategy remain effective with the next generation of VICs? Kerr thinks so. “Next-gen luxury consumers’ expectations are even higher as they have radically different preferences and priorities,” he says. “They’re immune to traditional luxury marketing tactics and the white noise of craftsmanship and want to be able to embrace the spirit of the brand at every touchpoint in an interesting and unpredictable way. Experience-driven engagement does exactly that.”

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How ultra-luxury brands are charming the 1%