Luxury Institute News

May 2, 2013

Pentamillionaire Investors Reveal Whether 34 Top Firms Are Worth What They’re Paid To Watch Their Portfolios

(NEW YORK) May 2, 2013 – Affluent U.S. investors with at least $5 million in assets and $200,000 minimum annual income rate 34 national financial services firms in the Luxury Institute’s 2013 Luxury Brand Status Index (LBSI) wealth management survey. Wealthy individuals share opinions on each firm’s quality, exclusivity, social status and overall client experience.

Only 30% of firms achieved an overall LBSI score of 5.0 out of a possible 10.0, suggesting significant dissatisfaction from high-net worth investors with their wealth management providers. Brown Brothers Harriman earned the highest LBSI of 5.87.

“Especially in wealthy management, client relationships and trust can take years to cultivate and a short period to deteriorate,” says Luxury Institute CEO Milton Pedraza. “Smart firms need to listen to what wealthy individuals are telling them to maintain brand reputation and client loyalty.”

Respondents ranked the following 34 wealth management firms, listed alphabetically:

  • Ameriprise Financial
  • Bank of America
  • Barclays Wealth Management
  • BB&T Wealth Management
  • Bernstein Global Wealth Management
  • Bessemer Trust
  • BMO Harris Private Banking
  • BNY Mellon Wealth Management
  • Boston Private Bank and Trust
  • Brown Brothers Harriman
  • Charles Schwab
  • Citi Private Bank
  • Credit Suisse Private Banking
  • Deutsche Asset & Wealth Management
  • Deutsche Bank Alex. Brown
  • Fidelity Investments
  • Fifth Third Private Bank
  • Goldman Sachs
  • HSBC Private Bank
  • J.P. Morgan Private Bank
  • J.P. Morgan Private Wealth Management
  • Merrill Lynch
  • Merrill Lynch Private Banking & Investment Group
  • Morgan Stanley Smith Barney Wealth Management
  • Neuberger Berman
  • Northern Trust
  • PNC Wealth Management
  • SunTrust Private Wealth Management
  • U.S. Bank Private Client Group
  • U.S. Trust
  • UBS Private Wealth Management
  • Vanguard Personal Investors
  • Wells Fargo Private Bank
  • Wilmington Trust Wealth Advisory Services

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

 

September 22, 2012

Consumers’ Expectations High for Luxury Brands on Mobile

The highest percentage of high-end consumers expect luxury apps to include a loyalty program

eMarketer
September 21, 2012

Luxury brands have been slow to the mobile party, with marketers steering clients toward traditional brick-and-mortar locations where products could be displayed in elegant surroundings and customers were treated to an impeccable shopping experience. But luxury brands are making up for lost time, according to a new eMarketer report, “Luxury Marketing: Recreating the One-on-One Experience with Mobile.”

Click the link to read the entire article: http://www.emarketer.com/Article.aspx?R=1009366&ecid=a6506033675d47f881651943c21c5ed4

September 12, 2012

In Asian Luxury Hotels, Wealthy Chinese Love Lodging With Hyatt And Marriot, But Japan Prefers Putting On the Ritz

(NEW YORK) September 12, 2012 – U.S. hotel operators prove popular among wealthy travelers in Asia’s two biggest markets, according to two new Luxury Brand Status Index (LBSI) surveys of affluent Chinese and Japanese by the independent and objective New York-based Luxury Institute. Japanese travelers earning at least 15 million yen per year ($190,000) evaluated 20 luxury hotel brands, and Chinese consumers with minimum annual income of one million yuan ($157,000) considered 26 luxury-lodging names.

Wealthy respondents rated hotels 1-10 on criteria including quality of accommodations, exclusivity, degree of status enhancement and ability to deliver special guest experiences.  They also indicated which hotel brands they planned to stay with this year, and whether they’re willing to pay premium prices or to recommend a brand to people close to them.

In China, St. Regis (8.41) earns the highest LBSI score, but the JW Marriott (36%) and Grand Hyatt (34%) were most frequently visited in the past year by wealthy Chinese travelers and are the two hotels where they plan to stay next. Along with InterContinental, Marriott and Hyatt are also the two most likely brands to receive favorable recommendations from wealthy Chinese travelers.

In Japan, Ritz-Carlton ranks at the top for both popularity and prestige. Ritz earns the second-highest (7.62) LBSI score, just behind Peninsula Hotels (7.66), but it is deemed the hotel most worthy of a price premium.  Ritz-Carlton is also the most popular choice for the next hotel visit.

“Luxury hotels don’t achieve consistently superior ratings by accident,” says Luxury Institute CEO Milton Pedraza. “Standards, systems and training underpin excellence in any service business, especially luxury.”

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

Ralph Lauren And Calvin Klein Are The Most Popular Fashion Brands For Wealthy Shoppers, But Women See More Prestige In Chanel, Vuitton and Prada; Men Prefer Italian.

(NEW YORK) September 12, 2012 – Men and women earning at least $150,000 a year shared detailed opinions on 30 Ready-to-Wear luxury fashion brands in the latest Luxury Brand Status Index (LBSI) survey from the independent and objective New York-based Luxury Institute. LBSI scores comprise average (1-10) scores on product quality, customer service, social status and ability of the brand to deliver special customer experiences.

Chanel earns the highest LBSI score (7.49) from women, ranking comfortably above Louis Vuitton (7.29) and Prada (7.21). Chanel is also the leading brand for delivering the best customer experience, and the one most deserving of charging premium prices.

Among high-income men, the highest ranking brands are three from Italy: Canali (7.84), Brioni (7.80) and Ermenegildo Zegna (7.72). Canali earns the highest overall rankings for product quality and service experience, and it’s one of the top three brands most deserving of charging premium prices, along with Zegna and Brunello Cucinelli.

Brand prestige and popularity are two different matters. The top two brands purchased in the past year by both men and women are Calvin Klein and Ralph Lauren, and Ralph Lauren is the brand most mentioned as one wealthy consumers will buy in the coming year. Zegna ranks second for intended purchase among men.

“With luxury Ready-to-Wear, wealthy consumers certainly place tremendous weight on product quality, but those brands that combine great products with excellent service are the ones delivering superior overall experiences,” says Luxury Institute CEO Milton Pedraza. “Consistently delivering that kind of experience is at the heart of sustaining premium pricing.”

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

September 5, 2012

Wealth Management Boutiques Beat Big Banks In Luxury Institute Brand Status Survey Of Pentamillionaires

(NEW YORK) September 5, 2012 – Investors with at least $5 million in assets and minimum annual income of $200,000 prefer smaller boutiques instead of larger Wall Street firms in the latest Wealth Management Luxury Brand Status Index (LBSI) survey from the independent and objective New York-based Luxury Institute.  LBSI scores comprise respondents’ evaluations (1-10) of each brand’s quality, exclusivity, social status and ability to deliver special client experiences.

Brown Brothers Harriman earns top honors with the highest LBSI score of 7.01, and ranks first on each of the four sub-categories. Brown Brothers’ closest competition comes from Boston Private Bank and Trust (6.37), Neuberger Berman Private Asset Management (6.3) and Bessemer Trust (6.27).

Wealthy investors also show a strong streak of independence with the largest share (8.7%) saying that they would use Fidelity for future wealth management services. Fidelity is also the most recommended brand, with 61% of pentamillionaires saying they would refer friends and family to Fidelity.  Only 32% would recommend Goldman Sachs.

“Reputations for honesty and superior client service are what make the smaller firms standouts in this survey,” said Luxury Institute CEO Milton Pedraza. “This is demonstrated by revered brands Rockefeller and Glenmede, which barely missed the mark in attaining a statistical sample, but would have been in the top range otherwise.”

Respondents reported $15 million average net worth and average income of $720,000.

 About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

 

June 5, 2012

Rolex Is Most Popular Pentamillionaire Luxury Watch Brand, but Breguet, Patek Philippe and Boucheron Rank Higher for Status

(NEW YORK) June 5, 2012 — U.S. shoppers earning at least $200,000 per year with minimum net worth of $5 million rank Breguet highest among 27 luxury watch brands in the 2012 Luxury Brand Status Index (LBSI) survey conducted by the independent and objective New York-based Luxury Institute. LBSI scores comprise respondents’ evaluations of each brand’s products, customer service experience and reputation.

With the top overall LBSI score of 8.13 out of 10, Breguet ranks first for superior product design, customer service experience and brand reputation. Creating time pieces since 1775 and now part of Swatch Group, Breguet is also identified by the ultra-wealthy as a brand “purchased by people I admire and respect.” It also ranks highest as the brand wealthy consumers are most likely to purchase (75%) when buying their next luxury watch.

Rolex, with a 7.96 LBSI score, ranks a close fourth for overall brand status behind fellow Swiss watchmaker Patek Philippe (8.05), and Paris-based Boucheron (7.99). Rolex is by far the brand most purchased (9%) by pentamillionaires in the past year, 4% have bought a Patek Philippe, 2% have purchased a Breguet and 2% have bought a Boucheron. In addition, 52% of wealthy shoppers are familiar with Rolex making it the best-known luxury watch brand.

“Fine materials and workmanship are absolutely essential for luxury watchmakers, but those at the top of the rankings differentiate themselves with excellent service and a superior customer experience,” says Luxury Institute CEO Milton Pedraza. “Consistent execution on all of these criteria builds brand value.”

Survey participants reported average income of $682,000 and average net worth of $14.6 million.

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

May 23, 2012

Pentamillionaires Pick Best Brands in Luxury Jewelry; Graff, Asprey and Mikimoto Take Top Honors in Luxury Institute Survey, but Tiffany Proves Most Popular

(NEW YORK) May 23, 2012 — Ultra-wealthy U.S. shoppers with at least $200,000 per year in household income and minimum net worth of $5 million rank U.K.-based Graff Diamonds highest among 22 luxury jewelers in the 2012 Luxury Brand Status Index (LBSI) survey by the independent and objective New York-based Luxury Institute. LBSI scores comprise respondents’ evaluations of each brand’s products, customer service experience and reputation.

With the top overall LBSI score of 7.98 out of 10, Graff ranks first on brand reputation and product quality considerations, scoring highest in evaluations of materials and craftsmanship.

Graff is also the brand that pentamillionaires are most likely to deem worthy of charging premium prices, followed by fellow U.K. jeweler, Asprey, and Japanese pearl specialist, Mikimoto. Asprey (7.82) and Mikimoto (7.77) also rank second and third, respectively, in overall LBSI scores.

Top luxury jewelers serve an exclusive clientele. Just 1% of pentamillionaires have purchased one of Graff’s diamonds in the past 12 months, 3% have shopped Asprey and 4% have purchased from Mikimoto. Tiffany & Co. is the most popular luxury jeweler: 13% of ultra-wealthy shoppers made a blue box purchase in the past year; 75% plan to buy Tiffany goods in the coming year.

“Quality in craftsmanship and materials are primary considerations for any luxury goods brand, but especially so in jewelry,” says Luxury Institute CEO Milton Pedraza. “The top-ranked jewelers also pay attention to delivering an outstanding customer experience to create true brand value and a competitive advantage.”

Survey participants reported average income of $682,000 and average net worth of $14.6 million.

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

December 21, 2011

Coach Outperforms Competitors on Key Brand Saliency and Service Metrics

(NEW YORK) Dec 20, 2011 — As part of its mission to educate and influence the luxury industry to evolve into world-class customer-focused enterprises, the New York-based Luxury Institute recently conducted an intensive analysis of its objective and independent Luxury Brand Status Index (LBSI) surveys and several WealthSurveys with wealthy consumers. With more than five years of data on dozens of luxury goods and services categories, the Luxury Institute sought to identify ‘best practitioners’ that have consistently scored above competitors.

In the handbag category, the analysis revealed that one brand stood alone in owning several critical metrics for brand vibrancy five years in a row: Coach.

Luxury Institute empirical data shows that Coach has achieved what no brand in the luxury handbag category has been able to in a five-year period with affluent women in the US: highest brand familiarity by a wide margin with an average of 73%. In addition, an impressive 25% of the sample of affluent consumers has purchased a Coach handbag in the last 12 months and 25% intend to purchase Coach as their next handbag. For comparison, the next highest rated brand has a purchase rate of 6% and purchase intent rate of 5% in the latest survey.

Coach is also the brand that most wealthy women have been willing to recommend to their friends and family for three out of five years and it has always been ranked within the top three most recommended brands with an overall average of 65%.

The brand is also top-of-mind when shoppers think of superior customer service. In a recent WealthSurvey, Coach was the handbag brand that was cited as having the best customer service on an unaided basis by premium handbag shoppers, outperforming its nearest two rival European competitors three to one. No other luxury handbag came close to achieving these results (see Graph A). Coach, to its global credit, demonstrates similar brand strength in Japan, one of the world’s most sophisticated luxury markets.

Achievements like these are the empirical rewards of a highly disciplined customer culture. Great product is extremely important and Coach is rated among the top quality handbags brands. However, a consumer-centric culture is the critical factor in consistently delivering extraordinary customer experiences.

By design, Coach is a consumer-centric brand built on strong core values. In an increasingly commoditized and highly competitive global luxury handbag market, it is simply not enough to outperform your competition on products; you have to dramatically outbehave them. “Unlike brands that tout their customer culture, yet fail to demonstrate consistent long-term profitability, Coach has repeatedly achieved superior results in Luxury Institute surveys for quality of product and service. In the mind of the U.S. luxury consumer, they are the clear winner in the Handbag and Accessories space,” says Milton Pedraza, CEO of Luxury Institute.

“The customer experience is the new battleground for the 21st century,” says Pedraza. “In a world where design, quality and craftsmanship are often imitated, brands will live or die based on more than just great products and services. With its customer-centric culture, as measured by independent wealthy consumer feedback, Coach is well positioned to thrive in a global marketplace where the human values and integrity of the brand matter most.”

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

November 2, 2011

Wealthy European Consumers Rank Luxury Hotel, Handbag and Fashion Brands; Loro Piana Loved By Women And Men, Hermès Earns Highest Handbag Score

(NEW YORK) November 2, 2011 – A new series of Luxury Brand Status Index (LBSI) surveys from the independent and objective New York City-based Luxury Institute reveals firsthand impressions and rankings of dozens of luxury brands by high net-worth consumers from the United Kingdom, France, Germany and Italy.

Wealthy European shoppers evaluated each brand on quality, exclusivity, social status and overall ownership experience to tabulate an overall LBSI score. Also considered were price worthiness, willingness to recommend the brand and likelihood of purchase.

Based on overall LBSI scores, the top three luxury brands in each category rank as follows:

  • Hotels (26 brands): Taj Hotels Resorts and Palaces; Mandarin Oriental; Ritz-Carlton
  • Handbags (39 brands): Hermès; Tod’s; Chanel
  • Women’s Fashion (44 brands): Loro Piana; Brunello Cucinelli; Hermès
  • Men’s Fashion (35 brands): Loro Piana; Michael Kors; Brioni

Several country-specific preferences are apparent. In Women’s Fashion, Italians rank Valentino highest, Germans prefer Louis Vuitton, and Alexander McQueen earns top ranking in the U.K.  In hotels, Ritz-Carlton ranks first in France and second in the U.K. behind Mandarin Oriental.

“There is certainly a diversity of taste and preference among wealthy consumers in Europe,” says Milton Pedraza, CEO of the Luxury Institute. “Several brands have succeeded in transcending national boundaries and enjoy wide appeal among the continent’s wealthy.”

Respondents come from households with minimum annual income of €50,000, or £60,000 in the U.K. For greater details on brand rankings in each category and other purchase considerations of wealthy European consumers, visit LuxuryInstitute.com.

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

June 18, 2011

Wealthy Consumers From China And Japan Rank Luxury Brands In Four Categories; Lots Of Love In Asia for Chanel, Hermès and European Stalwarts

(NEW YORK) June 17, 2011 – A new series of Luxury Brands Status Index (LBSI) surveys from the independent and objective New York City-based Luxury Institute reveals firsthand impressions and rankings of dozens of luxury brands by high net-worth consumers from Japan and China. Respondents were 21 years of age and older, earning the equivalent of at least $185,000 per year—one million Chinese renminbi or 15 million Japanese yen.

Wealthy Japanese and Chinese shoppers rated each brand on quality, exclusivity, social status and overall ownership experience. Also considered were price worthiness, willingness to recommend the brand and likelihood of purchase.

Based on overall LBSI scores, the top luxury brands rank as follows:

  • Hotels
    • China: Fairmont Hotels & Resorts; JW Marriott; Aman Resorts
    • Japan: Ritz-Carlton; Orient-Express Hotels; Aman Resorts
  • Handbags
    • China: Chanel; Louis Vuitton; Dior
    • Japan: Hermès; Chanel; Louis Vuitton
  • Women’s Fashion
    • China: Chanel; Dior; Hermès
    • Japan: Hermès; Chanel; Louis Vuitton
  • Men’s Fashion
    • China: Giorgio Armani; Versace; Brioni
    • Japan: Hermès; Louis Vuitton; Burberry

“European luxury brands are warmly received by wealthy shoppers throughout Asia,” says Milton Pedraza, CEO of the Luxury Institute.  “Japan’s market is more mature and surprisingly resilient so far in the wake of the tsunami and quake, while growth stays red hot in China.  Firms need to know where they
rank.”

For greater details on brand rankings in each category and other purchase considerations of wealthy Japanese and Chinese consumers, visit LuxuryInstitute.com.

About Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the objective and independent global voice of the high
net-worth consumer. The Institute conducts extensive and actionable research
with wealthy consumers about their behaviors and attitudes on customer
experience best practices. In addition, we work closely with top-tier luxury
brands to successfully transform their organizational cultures into more
profitable customer-centric enterprises. Our Luxury CRM Culture consulting
process leverages our fact-based research and enables luxury brands to
dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

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