High Point, N.C. — With retail facing the prospect of squeezed middle- and lower-income customers in 2025, high-net-worth buyers — and the luxury products they favor — could account for an outsized portion of consumer discretionary spending in the near and medium term.
Developing durable strategies for targeting these buyers should factor heavily into the planning of brands seeking to grow sales among this segment. As luxury marketing expert Mark Satterfield recently told Furniture Today, less is often more when it comes to selling to and serving high-net-worth customers.
“The affluent really aren’t terribly receptive to pitches,” Satterfield said. “The standard ‘Rooms-to-Go’ type of pitch really doesn’t work at the high end. Really what the affluent are looking for is guidance. They’re looking more for design advisors as opposed to sales staff.”
Going overboard and leaning on mimicry of well-known high-end names is one of the biggest mistakes Satterfield sees brands making when trying to move the needle with high-net-worth clients.
“We all know what Versace does very well. Most people can’t pull that off. Just dumping a bunch of gold gilt on it, putting a great big logo on it — that doesn’t cut it with the affluent, but a lot of people try.”
In addition to subtlety on the part of sales staff, Satterfield says that high-net-worth customers prize discretion and personalization in the buying process.
“When you look at a high-end place like Ralph Lauren Home, they are offering invitation-only services, custom pieces and private consultations for their top-tier clients,” he explained. “This is quiet luxury at its finest. It’s saying to the prospective client that ‘you’re different, and we respect that, and we are really trying to create an experience for you that is unique to you.’ This is increasingly important as you move up higher and higher in the food chain.”
Another key to unlocking sales among high-net-worth customers is positioning products as investments rather than expenses, foregrounding factors like craftsmanship and longevity.
“Focus on the factors that make the item more than just décor, but rather something that will be passed down through generations,” Satterfield urged. “If there’s an architectural or design story that a piece is telling, that can go a long way. If retailers can train their staff on the story behind products — what makes them unique — they are going to be in an enormously powerful position.”
Satterfield emphasizes that these strategies aren’t static or limited to the top tier of the market. He believes they can be smartly adapted to appeal to both the ultra-wealthy and the broader category of affluent buyers who may not fall neatly into that top bracket but who often share similar expectations.
“I think (aiming for the mass affluent) with some of these strategies is definitely doable,” he said. “Taking again the example of Ralph Lauren Home: They do a superb job of having broad appeal in terms of home goods, but also offering a private, bespoke custom service for their elite clients.”