Start where everyone else ends: How to sell luxury to HNWIs

One of the key topics I focus on as an academic teaching about the luxury industry — is how to sell to people who can afford literally everything: High-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI). Équité Research estimates that by 2025, UHNWIs alone will represent about 2% of total luxury clients but will contribute more than 35% of total spending, driving much of the industry’s growth. Their share, however, can be significantly higher in certain luxury categories and for specific luxury brands. By 2025, UHNWIs alone will represent about 2% of total luxury clients but will contribute more than 35% of total spending. Despite their significance, many brands struggle to connect with these elite clients. The challenge stems from the globetrotting lifestyle of both groups, especially UHNWIs, making them difficult to reach and engage. These individuals demand hyper-personalized experiences and exclusivity that many brands find challenging to deliver consistently. Many luxury companies also face difficulties in accurately identifying and segmenting their very important clients (VICs), potentially missing out on 70-80% of high-value customers, according to Équité Research. Additionally, the shift towards more understated luxury and experiences among the ultra-wealthy requires brands to rethink their marketing strategies and product offerings. In a few recent mystery shopping exercises at the top end of the market, I personally experienced how even some of the highest-positioned brands struggle to deliver emotional connections and how sales staff often lack the empathy needed to understand HNWIs and their desires. Luxury is, fundamentally, pure emotion. When that emotional connection is missing, brands miss out. Therefore, it was refreshing to discuss these issues with the CEO of Stefano Ricci, Niccolò Ricci, during a recent episode of the Future of Luxury Podcast, filmed against the awe-inspiring backdrop of Cambodia’s ancient temples and lush landscapes. We took a deep dive into the current state and future of luxury. His family brand is one of the most successful in connecting with the world’s most discerning ultra-luxury clients, many of whom are self-made entrepreneurs who have seen and experienced it all. I was excited to explore with Niccolò how luxury brands today can captivate the top end of the market and inspire the clients every brand dreams of attracting. The art of feeling good What I loved about the conversation — and what confirms insights I have observed over the last two decades — is that luxury must evoke a profound sense of well-being. As Ricci eloquently said, he envisions his clients starting their day with a Stefano Ricci shirt or suit and thinking, “This feels good.” This simple yet powerful concept underscores a fundamental truth in luxury: the emotional connection is paramount. It’s not just about owning expensive clothing. The value a brand creates — what I refer to in my research on luxury client psychology as “Added Luxury Value” — is about how that suit (or any other item or service) makes you feel. It’s the anticipation of a significant positive perception shift. This, and practically nothing else, is what clients pay significant premiums for. For the luxury industry, this often requires a paradigm shift from transactionally selling products to emotionally inspiring clients. The power of experience in a time-starved world In today’s fast-paced world, time, especially quality time, has become our most precious commodity. Stefano Ricci’s Explorer Project brilliantly taps into this ethos, inspiring clients to explore the world’s remote corners, immerse themselves in nature, and carve out moments of solitude and reflection. This initiative is a masterclass in brand storytelling, something I have long advocated as critical in luxury marketing. It’s about inspiring a lifestyle, an aspiration, a way of being. Experiencing the magic of Cambodia with the Stefano Ricci team while producing my podcast was truly breathtaking. As Niccolò shared, “What I really enjoy is being alone in a place when the sun goes up.” This sentiment captures the essence of what luxury has become in the 21st century — not just possessions, but moments, experiences, and memories that last a lifetime. Beyond creating breathtaking imagery and inspiring wanderlust, Niccolò highlights that the Explorer Project serves as a platform for sustainability initiatives. By supporting local communities and wildlife conservation efforts in the places they visit, there is a commitment to responsible luxury that resonates deeply with many of today’s UHNWI. In a recent UHNWI roundtable I organized at Pepperdine University’s Graziadio Business School in Malibu, the focus on positive impact was paramount among all centi-millionaires and billionaires who were present. The pursuit of excellence One point in our discussion that deeply resonated with me is that luxury is going beyond “quality.” As Niccolò emphasized, the ambition of Stefano Ricci is to combine the finest raw materials with exceptional design. This relentless pursuit of excellence is reflected in the brand’s ethos: “Start where everyone else ends.” Perhaps one of the most intriguing aspects of success is how Stefano Ricci cultivates a community around it. Its clients, often successful entrepreneurs and business leaders, become friends and sources of inspiration. This symbiotic relationship creates a virtuous cycle of inspiration and aspiration that continually elevates both the brand and its clients. Adapting to changing clientele As the luxury market evolves, so do its clients. Brands need to adeptly navigate this shift, appealing to a younger generation of successful individuals. The approach of Niccolò’s team? Maintaining excellence while embracing comfort — using superior materials but moving away from ostentatious displays of wealth. It’s a nuanced strategy that speaks to the changing values of luxury consumers. What emerges from this conversation is a blueprint for the future of luxury. It’s about crafting products of extreme quality, yes, but also about creating extraordinary experiences, building a community that deeply connects, and telling compelling stories. It’s about preserving craftsmanship that can easily be lost in an era dominated by technology, while also innovating for comfort and sustainability. Most importantly, it’s about recognizing that true luxury is deeply personal, emotional, and transformative. It’s inherently human. Brands aiming to successfully reach HNWIs and UHNWIs must remember that, at its core, luxury is about making people feel extraordinarily valued. Whether it’s through the touch of fine fabric against skin, the thrill of exploring uncharted territories, or the fulfillment of supporting meaningful causes, luxury — when done right — has the power to elevate our lives. Watch or listen to the full episode This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders,” and advisor to some of the most iconic luxury brands in the world. He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts in-person masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his online luxury masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. Listen to his Future of Luxury podcast.

Start where everyone else ends: How to sell luxury to HNWIs

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Published January 27, 2025

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Start where everyone else ends: How to sell luxury to HNWIs