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The luxury goods market may be struggling with a downturn, but head down to Knightsbridge or Chelsea this summer and you’ll still see busy boutiques and throngs of people with designer shopping bags strung over their arms.
In the UK, the luxury goods market is projected to deliver revenue of $17.2bn this year. Yet the war for the contents of your wallet is cut-throat and even the most in-demand brands have realised that loyalty schemes and exclusive membership benefits can lead to even bigger bottom lines.
Luxury loyalty schemes differ from supermarket points cards in prestige, but not necessarily in practice. Many of the more innovative retailers have launched their own points schemes — only with fashion, you can get points for promoting the brand as well as purchases.
There are a myriad of loyalty and membership options available for the discerning shopper, though I’ve discounted the proliferation of VIP discounters and cut-price designer brand websites after hearing many reports about poor selling practices and less-than-fabulous deals.
This leaves us with three main categories: traditional luxury brand loyalty schemes, points and reward schemes favoured by younger influencers and fashionistas and the super exclusive, invite-only options for the most favoured (and wealthy) shoppers.
One general tip: ignore the meaningless term “VIP”. Find a brand you love and ask them about their “exclusive” membership schemes.
Luxury loyalty points schemes
Many high-end brands offer their own versions of loyalty points schemes, but these are different to those you may have encountered before. The Cambridge Satchel Company, for example, offer loyalty points on purchases of their bags — but, if you have a social media presence, the company will award points for following the company or recommending it online.
One of the most generous luxury points retailers is Nordstrom, whose Nordy Club offers a point per dollar spent, increasing to $3 for spending on the Nordstrom Visa credit card. One thousand points equates to $10. There are lots of exclusives and opportunities to pump up your points too.
Luxury rewards and subscription services
Harrods Rewards has been around since 2006 and reputedly three-quarters of its business comes from scheme members. There are four tiers for you to work your way up, depending on your annual spend. Those at the top of the escalator — the black tier — must spend more than £10,000 a year, but get three points for every £1 spent and receive a ridiculously wide range of benefits, from alterations by the Harrods tailors to eligibility for the Harrods credit card and even — that rarest thing — car parking in Knightsbridge. Five hundred points equates to a fiver, but that can go further when you explore your spending options on the app.
The ultimate luxury brands
At the very top of the scale are brands whose members’ schemes are spoken of in hushed tones. Where the portals of extreme wealth and luxury will only open to those with the highest status in society — and the deepest pockets. You cannot merely join these schemes. You must be invited.
The Gucci Collectors Club is only available to the brand’s most loyal customers. But you will reputedly gain access to exclusive designs and items unavailable elsewhere, customised gifts, personal shoppers and even fashion show invites. But the ultimate and most desirable membership club is that of Hermes.
If you want to get on to the waiting lists for the latest Birkin, you are going to need to demonstrate a “strong purchase history” — and even that reportedly won’t necessarily get you into the queue for the world’s most famous handbag. Whole Reddit threads are devoted to sharing tips — one popular strategy is trying your luck at lesser-travelled Hermès stores. Or perhaps some good old-fashioned charm as you hand over your black credit card . . .
