Monday, September 17, 2012
V Creative Agency - Articles: How Much Does it Takes to Be A Chinese VIP?
V Creative Agency - Articles: How Much Does it Takes to Be A Chinese VIP?: It comes as no surprise that to luxury brands, Chinese VIPs are those that spend the most. Reports on just how much vary. McKinsey reports that VIPs drop at least 150,000 renminbi a year on luxury goods. Accounts from real VIPs suggest that number is much higher. Wall Street Journal reporter Laurie Burkitt recently interviewed a young woman in Beijing who said she spent about 20,000 renminbi on luxury products every one or two months. “She also said that in order to become a VIP in some instances you need to spend at least that much. And at Hermes, you need to spend a whole lot more, buying about five or six limited edition bags per year,” Burkitt reported. And the fact that the VIPs keep spending mean that brands have worthwhile incentives. Few retailers publicly offer details about everything a VIP receives in an attempt to preserve the uniqueness of the experience for those paying for it. “They want this to be an exclusive, extravagant experience for a VIP to make them feel really special and provide some sort of impression on them so they will go home and tweet about it on Weibo, which is very similar to Twitter, and tell all their friends, so that other VIPs will go in and do just the same – buy a lot of products and go back and tell their friends,” said Burkitt.