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The luxury market may be suffering a downturn, but head to Knightsbridge or Chelsea this summer and you’ll find bustling boutiques and throngs of people with designer shopping bags slung over their arms.
In the UK, the luxury market is expected to generate revenue of $17.2 billion this year, but the battle for consumer wallets is fierce, and even the most in-demand brands are realizing that loyalty programs and exclusive member-only perks can lead to bigger profits.
Luxury loyalty programs differ in prestige, but not necessarily practicality, from supermarket points cards. Many of the more innovative retailers have launched their own points programs. In the fashion industry, you can earn points not just for purchases but also for promoting the brand.
There are countless loyalty and membership options available for the discerning shopper, but I despise the proliferation of VIP discounters and cheap designer brand websites, having heard numerous reports of poor sales practices and less-than-stellar deals.
That leaves us with three main categories: traditional luxury brand loyalty programs, points and rewards programs favored by young influencers and fashionistas, and ultra-exclusive, invitation-only options for the most preferred (and wealthy) shoppers.
General tip: Ignore the meaningless term “VIP.” Find a brand you like and ask about their “exclusive” membership schemes.
Premium loyalty points system
Many luxury brands offer their own loyalty points schemes which are different to anything we’ve seen before – for example, Cambridge Satchel Company offers loyalty points for purchasing bags, but also for following the company if you have a social media presence or recommending them online.
One of the most generous luxury points retailers is Nordstrom. Their Nordy Club gives you 1 point for every dollar spent, which increases to 3 points when you pay with your Nordstrom Visa credit card. 1,000 points equals $10. There are also plenty of exclusive rewards and opportunities to earn more points.
Luxury perks and subscription services
Harrods Rewards has been around since 2006 and claims that three-quarters of its business comes from scheme members. There are four tiers based on annual spend. Members at the top of the escalator (Black Level) must spend more than £10,000 a year, but earn three points for every £1 spent, accessing an incredible range of rewards, from alterations by Harrods tailors to entitlement to a Harrods credit card and (most unusually) car parking in Knightsbridge. 500 points are worth £5, but you can get even better value by exploring spending options on the app.
The ultimate luxury brand
At the very top of the list, brands whisper about membership schemes where the doors to extreme wealth and luxury are open only to the most highly placed and wealthiest in society. You can’t just join these schemes; you have to be invited.
The Gucci Collectors Club is only available to the brand’s most loyal customers, but it is said that they receive exclusive designs and items that can’t be found anywhere else, customized gifts, personal shoppers, and even invitations to fashion shows. However, the ultimate and most desirable members-only club is that of Hermes.
If you want to get on the waiting list for the latest Birkin, you’ll need to prove a “strong purchasing history,” but that reportedly won’t necessarily get you on the waiting list for the world’s most famous handbag. An entire Reddit thread has been devoted to sharing tips, and one popular strategy is to try your luck at a less-trafficked Hermès store. Or maybe just hand over an old-fashioned lucky charm when you hand over your black credit card…
