With the holiday season in full swing this month, I took special notice of some information I received from Milton Pedraza, CEO of the Luxury Institute, a New York research firm that focuses the consumption habits of the very rich.
Based on the firm’s research, here are some of the au courant faves of wealthy consumers for this year’s gift-giving/receiving, as taken from the firm’s press release.
• Automobiles
Porsche has pulled ahead of the pack in terms of overall brand prestige, as ranked on the Luxury Institute’s Luxury Brand Status Index (LBSI). Gifts from Mercedes or Lexus would not disappoint either: The two brands round out the top three most prestigious brands in the automotive category.
For wheels selling north of $100,000, Rolls-Royce rolled one spot higher from 2005 to overtake Maybach as the most prestigious ultra-luxury auto name. Maybach ceded all but one of the pillars of luxury brand status to Rolls, but it topped the list of 10 ultra-luxury makes in social status. Bentley also finished near the top of the rankings, and is the brand that the wealthy are most likely recommend to family and close friends.
• Home appliances
Kitchen renovations are among the most popular home improvements, and in this important area, a handful of brands dominate. California’s Wolf Range is the top-ranked home appliance brand. Britain’s AGA and Germany’s Gaggenau rank second in the LBSI for home appliances, followed by Viking and Sub-Zero.
• Home furnishings
Among the multitude of the most highly esteemed brands offering items to furnish and decorate the home are extensions of famous fashion houses. Armani Casa, Maitland-Smith and Stickley are the top brands according to America’s wealthy. Also in the top 20 percent are Fendi Casa, Pierre Deux and Roche Bobois.
• Glassware
If you’re contemplating a gift of crystal, be advised that Lalique enjoys the best reputation among ultra-wealthy consumers who know the storied French brand. Another French brand, Baccarat, finished second overall, followed closely by Steuben and Christofle.
• Fine china
Hungary’s Herend Porcelain is the brand that stands head and shoulders above its peers and, according to wealthy consumers, is the brand with the most improved image in the past year. Hermes and Waterford round out the top three fine china brands, followed by stalwarts like Cartier, Tiffany and Rosenthal.
• Consumer audio
When wealthy audiophiles want to listen to music, they are especially pleased to do so with an audio system from Bang & Olufsen. The Danish company edged out Bose for the highest ranking in consumer audio, followed by Nakamichi.
• Consumer video
Even more impressive for Bang & Olufsen, the company is also the brand image leader in consumer video. Nakamichi, a runner-up in the consumer audio category, finished along with Sony among the top three brands (out of 25) in consumer video. Perhaps a big part of Bang’s well-regarded image is a result of its closeness to the customer. More than half of its outlets are exclusive Bang & Olufsen distributors.
• Fashion designers
One of the gems in Gucci Group’s crown, Bottega Veneta, earns the Luxury Institute’s highest Luxury Brand Status Index score in fashion. Customers who know Bottega Veneta rate it highest in quality, uniqueness and exclusivity, and say it is the brand most used by people who are admired and respected. They also say that it is the brand most able to make its customers feel special and that it is the most worthy of a significant price premium. Armani and Hermès round out the top three most prestigious fashion designer brands.
• Luxury fragrances
Among the favorites for wealthy men are Boucheron Pour Homme eau de parfum, Cartier Santos Concentrée and Jaipur Homme by Boucheron. Cartier fragrance brands for women are among the most esteemed brands, including Le Baiser du Dragon and Panthère. Angel by Thierry Mugler earned a high brand status ranking from the wealthy.
• Accessories
Diamonds are indeed a girl’s best friend, especially if they’re from Harry Winston. The New York jeweler finishes first in all four critical metrics of luxury brand prestige: consistently superior quality, uniqueness and exclusivity, social status and the ability of the brand to make customers feel special throughout the entire customer experience. Tiffany and Cartier tie for second place, while Japanese pearl specialist Mikimoto comes in third.
Among 17 brands of watches whose top offerings retail for $50,000 and higher, wealthy Americans have particularly high regard for Franck Muller and Patek Philippe, two brands earning the highest rankings in the category. Other especially prestigious brands in the eyes of the wealthy: Vacheron Constantin, Audemars Piguet and Breguet.
Fine pens are popular gifts for friends or business associates. For those trying to spell status and exclusivity, the best bet is with the Ducati and Jaguar offerings from Italian firm Aquila. Other options include Montblanc, which earned top marks for delivering consistently superior quality, and Tiffany, which wealthy consumers say does the best job of making them feel special throughout the customer experience.
• Travel
The desire of high net-worth individuals to get away for a memorable vacation is driving sales of high-end adventure travel, truly a niche for the rich. In this category, Abercrombie & Kent, a market pioneer, is the most prestigious tour operator, followed closely by Tauck World Discovery and Wilderness Safari.
Despite its rapid expansion over the past several years, Ritz-Carlton is still tops in hotel brand prestige among the wealthy, edging out Peninsula. Small Luxury Hotels of the World and Four Seasons tied behind Peninsula in the ranking of 19 leading luxury hotel brands. Particularly impressive for the category as a whole, and for Ritz in particular, is that the luxury hotel business gets the highest marks of all luxury industries in terms of product, customer service, innovation and trust.
Cruises make good gifts to give and receive. When faced with a question of carriers, the wealthy prefer smaller lines like Seabourn, Silversea and Lindblad. Seabourn steamed to a first-place finish, just ahead of Silversea. The overall winner in 2005, Lindblad, also finishes among the top three brands.
Taking off to Las Vegas to wager some of the year-end bonus? If you’re wealthy, you’ll probably run into your peers at Bellagio or the Wynn. If Atlantic City is your destination, you’re likely to land at the Borgata.