LUXURY EXPOSES DESIGN MYTHS

By Chris Ramey

Luxury and design are very different business models. In many ways, luxury exposes design myths and fables.

Designers are not immune from market forces. The myths that designers are somehow above marketing or that marketing is not effective for designers are two of the most harmful myths imaginable.

The entire luxury category is built on marketing that creates desire for brand. Your brand equity and margins increase as more prospects desire to retain you.

Every industry has protective bubbles. The result is parity; everybody looks the same, particularly online. It is a myth that you can compete profitably if prospects think you are no different than other designers. That parity is why design is considered comparative and often commoditized.

Meanwhile, luxury is superlative; driven by point of view from the person at the top. Designers often tell me they “do whatever the client wants.” But if so, their client need only hire an intern. I believe every interior designer brings something special to every relationship and design. But it’s meaningless if they miss identifying and leveraging it.

Industry disruptors across all categories almost always emanate from outside industry bubbles, for example, Casper, Tesla and Airbnb. They see the world differently.

Luxury sees design differently too as our values are centered on classic luxury marketing pillars that are reminiscent to design in the days of Dorothy Draper. These pillars should be more important than ever to talented high-level interior designers. The current bubble that dumbsdown design is an anathema to us.

We understand it’s human nature to be comfortable inside your bubble. You can congratulate each other at events to chat-up your relevance. You might even begin to believe ‘word of mouth’ is more impressive and effective than real marketing. It’s akin to Garrison Keillor’s fictional Minnesota town where “all the children are above average.” It is delusional

The most difficult truths exist outside your bubble where you discover that not everyone knows who you are. Former US Secretary of State Madelaine Albright tells a story about being pulled out of line at London’s Heathrow Airport by British customs. She asked the officials, “Do you know who I am?” The guard replied, “No, but we have doctors here who can help you to figure that out.” Mrs. Albright was outside her bubble. Fortunately, you can advertise beyond your bubble to build brand awareness. If Cartier, Coke and Chanel must advertise, then you do too.

The most important business pillar of luxury is ‘marketing first.’ The luxury category and luxury margins are driven by marketing that creates desire for brand.

It is a myth that you sell to the affluent. Instead, you fascinate and match values. Of course, you only have that opportunity if they know you exist. Anonymity, regardless of whether you consciously plan it or not, is always a bad strategy.

“THE MOST DIFFICULT TRUTHS EXIST OUTSIDE YOUR BUBBLE WHERE YOU DISCOVER THAT NOT EVERYONE KNOWS WHO YOU ARE.”

The consensus in Silicon Valley is that the pandemic accelerated the growth of digital by five years. My company, The Home Trust International leverages technology for our members by creating programs to market to those who drive a Bentley, fly on NetJets, retain private wealth firms, attend the Monaco Boat Show, own a Ritz-Carlton Residence, attend equestrian events and many other hyper targeted tactics to create awareness and match values.

Matching values with your prospects is a pillar of luxury. In luxury, you do not match price; you match values.

The Home Trust’s values are centered around all pillars of luxury, including scarcity. The affluent reject long lists of anything. They want an editor and concierge to save them time; that is what we do. We will never have more than .01% of designers as a percent of HNWIs in each hemisphere. That’s about 120 American designers based on today’s wealth population. Any more would be inconsistent with our mission to serve affluent families and our members.

Preservation of artisanship and craftsmanship is another pillar of luxury that we take very seriously. It is also closely connected to fascinating your clients with the sophistication and grace they deserve, more pillars of luxury. It is a myth that the affluent prefer quantity over quality. It’s why ‘connoisseurship’ is part of our mission statement.

It’s also a myth that anyone can be a luxury designer. Conversely, it’s a myth that every HNWI wants a luxury designer. My guidance for you is to escape the industry bubble, identify and leverage your point of view, find the right group that reflects your DNA, never be a poseur, don’t fall prey to myths, serve your clients and increase your margins.

And never stop marketing.

“THE HOME TRUST INTERNATIONAL LEVERAGES TECHNOLOGY FOR OUR MEMBERS BY CREATING PROGRAMS TO MARKET TO THOSE WHO DRIVE A BENTLEY, FLY ON NETJETS, RETAIN PRIVATE WEALTH FIRMS, ATTEND THE MONACO BOAT SHOW, OWN A RITZ-CARLTON RESIDENCE, ATTEND EQUESTRIAN EVENTS AND MANY OTHER HYPER TARGETED TACTICS TO CREATE AWARENESS AND MATCH VALUES.”

Chris Ramey is a consultant and thought leader in the global luxury segment. His personal website is Affluent Insights and he is president of The Home Trust, reserved exclusively for the finest brands in home design/luxury. Ramey’s expertise is helping firms penetrate the HNW and UHNW markets.

FOR MORE INFORMATION VISIT: www.TheHomeTrust.com www.AffluentInsignts.com GET IN TOUCH WITH CHRIS: CPR@TheHomeTrust.com