There was a time when buying a Rolls-Royce was a wealthy person’s way of saying ‘I have earned this – this is my reward to cap a lifetime’s achievements’. Today, it is not unusual to see ultra-high net worth individuals in their late 20s and 30s making that big statement purchase. This was one of the interesting points made by Richard Carter, Director of Global Communications at Rolls-Royce Motor Cars, who was speaking at the launch of the WGSN report ‘How to Attract the Luxury Consumer in 2020’ at the annual Walpole Press Day.
‘The super-rich are getting younger and they want to crown their success with a Roller,” he observed.
He added that customising has been taken to a whole new level by some clients from the Gulf and China who ask for their trophy cars to be painted in colours that might frighten the wild life in the rolling hills of Sussex. However, he reflected, when he sees the brilliantly hued cars in their intended settings, he has to concede they often look great.
“Somehow it just works – and we cannot be the ‘taste police’,” he said.
He advised luxury brands to ‘Just Say Yes’ when faced with the sometimes outlandish requests of their high end clients.
Carter joined a panel of speakers including Michael Ward, chairman at Walpole and managing director, Harrods, Carla Buzasi, global chief content officer, WGSN, Mark Henderson, chairman, Gieves & Hawkes, Jerome Miller Mackay. marketing director, Ettinger, Alex Field, global head of marketing at Thomas Pink and George Gill of GMMR, a digital consultancy to the luxury sector. The chair was Charlotte Keesing, Director, Public Affairs & International, Walpole.
Walpole is an alliance of 170 of Britain’s finest luxury brands including Harrods and Burberry. The luxury industry is worth over £32bn to the UK economy. A range of Walpole brands were exhibiting at the press day held at The Royal Institution of Great Britain in Mayfair.
There was a lively discussion among the panel about the use of social media as a marketing tool and the role of collaborations in promoting a brand.
Collaborations were seen as being a good way of reaching customers but only if done on a highly selective basis that didn’t devalue the brand.
Social media was seen as having obvious benefits but was not regarded as the preferred mode of communication for some top brands whose clients might not be so receptive to this type of messaging.
Walpole members identified their top three most effective trends to lure luxury consumers over the next five years. These are: exclusive collaborations with relevant partners (78%), secret and exclusive brand experiences (59%) and personalised online experiences, for example, notifications (53%).
Michael Ward, Harrods MD, said: “The report findings show how luxury brands need to reimagine their approach to consumer engagement and go beyond static marketing tactics to achieve consistent relevance in the ever-evolving ‘phygital’ lives of our followers.”
Luxury companies were encouraged to invite valued clients into their workshops to give unique insights into their craftsmanship. This, it was stated, is what captivates people who are delighted to see the level of tradition and skill that goes into making the product.
It was predicted that augmented reality and virtual reality would play an increasingly important role in customers’ experiences. Buzasi quoted Curiscope Ceo, Ed Barton who noted: “If the internet was the democratisation of knowledge, virtual reality is the democratisation of experience.”
Carter of Rolls-Royce said artificial intelligence would have a huge impact on many industries – and predicted major changes ahead.
‘Car insurance will come to an end because of Artificial Intelligence,” he said.
Companies were asked how they managed to keep track of their customers’ preferences. George Gill of GGMR said it was important to bear in mind when analysing feedback from customers that the voice of the ‘passive majority’ is often not heard and a misleading picture can emerge dominated by brand evangelists and those flagging up a bad experience.
It was emphasised that customers need to have personalised communications – sometimes even a hand-written note – to make them feel special. Making the online experience personal is seen as increasingly important.
The opening rate of emails was cited as an obvious way of monitoring how effectively messages were getting across but most important were really well thought-out internal tracking systems that give detailed information about high end customers. Collecting data and using it effectively was seen as crucial to success.
Creating exclusive events or ‘money can’t buy experiences’ that become talking points and have ‘peer currency’ was highlighted as an important element of attracting and retaining clients.
Companies that recognise that flagship stores offering a carefully curated experience are well worth the investment are seen to be ahead of the curve. The old thinking that cost per square metre of retail space needs to be convergent with sales is seen as outdated. This is particularly true as many people come in to browse and enjoy the in-store experience and then shop online.
Mark Henderson reminded everyone of one essential fact that has to be understood amidst all the noise around new technologies and means of communication.