“VICs are the driving force of the luxury business,” Sukeena Rao, co-founder of London-based personal shopping firm Luminaire, told Glossy. “They account for a large percentage of global sales with almost every brand.”
VICs, or “very important customers,” is shorthand in the luxury market for a growing subset of high-end, affluent buyers who are “very low, very off the radar.” [and] unknown to the public,” Rao told Glossy. It’s part of what she calls a changing market, where, 15-20 years ago, the luxury buyer was mostly well-known celebrities or very wealthy public figures. Whereas now luxury shopping has become more curated and discreet. To wit: the internet calls this “quiet luxury”.
“It’s not always about the dress [a luxury piece] on a red carpet or appearing in public,” Rao said. “It’s done in a much more stealthy way.”
This changing luxury customer also has changing needs. While a high-profile individual or celebrity may not need an introduction to a luxury brand or referral to an in-demand makeup artist or stylist, today’s VIC is seeking access to lifestyle, beauty, wellness, brands and health, fitness and wellness experts. as well as fashion, jewelry and accessories markets.
On today’s episode of the Glossy Beauty Podcast, Rao shares insights into this growing demographic, which she reaches through her London-based personal shopping firm, Luminaire.
“We have a waiting list now. … [We’re] very selective about new clients because we never want to undercut,” she says. “We keep people on hold until we really have the ability to take care of them.”
Rao launched Luminaire in 2022 with co-founder Harriet Quick, a former fashion director at British Vogue. While it’s billed as personal shopping, the company is more nuanced than that. For around $57,307 (£45,000) a year, customers get hands-on meetings with Luminaire designers, personalized mood boards, unlimited resources and gift procurement, as well as brokerage for almost anything one could want, from apartments to the cars.
Meanwhile, entry-level membership starts at $6,367 (£5,000) a year and includes recommendations, mood boards, unlimited resources, fashion edits and basic access to luxury clothing and gift procurement and planning.
However, Rao told Glossy that beauty, wellness and health products and services are the fastest-growing requests from customers, whether it’s a haircut with a celebrity stylist, an appointment with a holistic doctor, a master class with a makeup artist known or a private. shopping experience. “If you really analyze the data, you’ll see that for us, beauty and wellness — along with jewelry, which is a hugely growing category — is leading the way,” Rao said.
Rao discusses these topics, as well as her predictions for the future of the luxury industry, in today’s podcast.
Portions of the conversation, below, have been lightly edited for clarity.
Who is buying luxury goods in 2024
“VICs [very important customers] are the driving force of the luxury business. They account for a large percentage of global sales with almost every brand. I think the difference has probably been that, historically, [the luxury shopper] or would have been a very popular celebrity, 15-20 years ago, or a high net worth [individual]. I think it has completely made a 360 where the most interesting client VIC [today] it is very low key, very off the radar, unknown to the public. …
Being a celebrity doesn’t actually pay as much as people in different industries, from tech to media, so many different types of people are now interested in buying luxury goods, and it’s almost done in a more personal way. So it’s not always about wearing it on the red carpet or going out in public. It’s done in a much more stealthy way. … We see a lot of people looking for guidance and franchise access. … There is only one real difference where VICs are actually looking for advice on beauty, travel, wellness getaways and wellness.”
The role of beauty and wellness in reaching the luxury buyer
“If you really look at the data, you’ll see that for us, beauty and wellness – alongside jewelry, which is a hugely growing category – is leading the way. I noticed [this shift] at Fashion Week in Paris and London [Fashion Week]. Some of the main events and sponsors we went to [were beauty or wellness].
In getting new customers
“We hold people until we really have the ability to care for them because everything from our engagement process to onboarding and how we feel under the skin of the family, or the individual, it’s so detailed and so nuanced that we really take the time and we take it seriously. It is not just about one aspect. It’s about a full 360 of their lives, their partners, their children, the locations they live in and the brands they already buy. There are so many people we meet who actually don’t like the things they already have, which is very sad. Part of our messaging is ‘buy less, buy better’. It’s not just about eternal consumption. … It’s much smarter to shop carefully.”
The future of the luxury industry
“I think there will be a lot of changes in the industry. The way we work – with attention to detail and really bringing that 360 to the customer – many brands are already starting to adapt to this. The focus is not necessarily on the product, but on the experience. It’s just getting deeper and deeper, and the emotional connections are getting deeper and deeper. So it can actually feel, 10 years from now, just like it was years ago, when there was almost no branding – because people are so focused; they are so committed to shopping with fewer brands and are really loyal. Brands are working hard for it and probably deserve it from their customers. I think people will continue in this emotional, mental connection, but to what level? Who knows. You know, if there’s one thing that’s true, it’s that the luxury industry never sleeps for long.”