2025: The Rise of the Luxury VIC
Imagine a world where economic downturns don't affect everyone equally. In 2025, the spotlight shone on the VICs—the Very Important Customers—a group seemingly immune to financial woes. But who are these VICs, and why did they become the focal point of the luxury industry?
The VIC Phenomenon
VICs, an acronym for 'Very Important Customers,' represent a cohort of high-net-worth individuals whose spending habits remained unwavering despite global economic challenges. This was exemplified by the extravagant $50 million wedding of Amazon founder Jeff Bezos and Lauren Sánchez in Venice, a testament to their financial resilience. As the luxury sector faced its first significant slowdown in 15 years (excluding the pandemic), brands and retailers shifted their focus to these top spenders, offering them exclusive experiences that went beyond traditional shopping.
The Shift in Luxury Strategy
Robert Burke, a leading fashion, retail, and hospitality consultant, highlighted the strategic importance of VICs. He emphasized that acquiring and nurturing relationships with these customers could significantly impact a brand's bottom line. This led to the emergence of specialized agencies like 1889 in Paris, which collaborated with luxury brands such as Valentino, Gucci, Cartier, and Saint Laurent to create bespoke events. These events ranged from private dinners in art collectors' apartments to helicopter rides to castle ruins, ensuring that VICs received unparalleled treatment.
Exclusive Experiences for Top Clients
Top clients were treated to all-expenses-paid trips to Paris during fashion weeks, staying in five-star hotels and dining at the finest restaurants. Every detail was meticulously curated, from personalized gifts to hair and makeup services before fashion shows. Aurélie de Royer, cofounder of 1889, succinctly stated, 'A VIC should never have to take out their credit card.'
Mytheresa's VIC Strategy
Online retailer Mytheresa exemplified this approach by organizing around 50 events annually, including intimate gatherings like afternoon tea with Guillaume Henry, artistic director of Patou, and extravagant two-day trips with Zegna. One such trip featured a tour of Turin in vintage Fiat 500 convertibles and a private dinner on the stage of the Teatro Regio, followed by a live opera performance. Michael Kliger, CEO of Mytheresa, noted the increasing expectations of these clients, leading to the launch of Maison Mytheresa, an exclusive private club in Saint Moritz offering cultural events, trunk shows, and personal styling appointments.
The Value of Time
Kliger emphasized the importance of time as a luxury for these high-end clients. While online shopping is efficient, inviting VICs to exclusive events in locations like the Hamptons or Saint Moritz allows for more meaningful interactions. Convincing a client to spend a day with a brand can be more challenging than selling a $10,000 coat, as time is their most precious resource.
Financial Impact of VICs
The financial impact of VICs is substantial. In the fiscal year ending June 30, 3.8% of Mytheresa's clients accounted for 42.6% of its revenue, a figure that has been steadily rising. Kliger attributed this to the increased spending of top customers, which has outpaced the growth in their numbers.
Global Shifts and Untapped Markets
As China faced economic challenges, luxury brands turned their attention to the U.S., home to the world's highest number of billionaires. Louis Vuitton, Gucci, and Dior announced plans to showcase their collections in New York City and Los Angeles, while Moncler Grenoble targeted Aspen for its fall 2026 collection. However, the focus on VICs has led to a shift in fashion show coverage, with brands prioritizing intimate venues and excluding fashion editors and influencers in favor of top clients.
The Future of VIC-Centric Strategies
Robert Burke predicted that the focus on VICs would intensify in 2026, with brands competing fiercely for their attention. This trend highlights the growing importance of personalized, community-driven experiences in the luxury sector. As brands strive to outdo one another, the question remains: How will they balance exclusivity with accessibility to maintain their relevance in an ever-changing market?
Thought-Provoking Question
As the luxury industry continues to evolve, how can brands ensure that their VIC-centric strategies remain sustainable and inclusive? Share your thoughts in the comments below!
