Luxury brands find team approach will drive dollar further
'Fancy a baby grand with that private jet, sir?"
Luxury brands are joining forces to maximise their haul from Australia's small but lucrative pond of wealthy customers, via lavish events a world away from the hard sell of the showroom floor.
It's a concept known as affinity marketing - the selling of complementary products to the same target market - and works on the premise that those in the market for a top sports car are the same folk who will drop $70,000 on a sound system or a cool half-million on a custom-built dining suite for 20.
Once a largely ad hoc affair, matchmaking between brands has turned professional, courtesy of The Luxury Network, an introduction agency for purveyors of prestige products.
Established in Britain in 2007, it set up shop in Australia in 2011. Two years on, the group has 100 members, selling everything from supercars to artisan chocolates, to a target market of about 150,000 cashed-up Aussies. Companies pay between $8000 and $30,000 a year to join the network. The fee gives brands an entree to functions where they can show their wares and discuss marketing opportunities.
The financial services sector classifies individuals with investable assets of $1 million - excluding their home - as high-net-worth, while those in the $20 million-and-up category are deemed ultra-high-net-worth.
Luxury Network Australia managing director Lynne Wyatt says member companies need to have a hefty percentage of clients who fit the high-net-worth criteria.
These well-heeled folk rarely decide to buy something because they've seen it on TV. Rather, personal recommendation is king, particularly if it's from someone from the same social milieu.
Working together to host upmarket events enables vendors to tap each other's databases and reach a larger pool of customers.
"It's about having a presence, not being in your face," Wyatt says. "I look at The Luxury Network as a giant jigsaw. Every member is a piece. Who you partner with is how the picture will look."
When supercar club Ecurie25's customers are invited to get fitted up for some Titleist golf clubs while they inspect some hot new wheels, it becomes a study in cashed-up, testosterone-fuelled consumerism.
The relationship-based sales approach makes sense to bespoke furniture maker David Boucher, whose handcrafted pieces grace the mansions and boardrooms of billionaires around the world.
Boucher has a workshop in Toowoomba and a gallery in Sydney's Castlereagh Street but says 99 per cent of custom comes via word of mouth.
Showing his work at events staged by Luxury Network members such as Rolls-Royce and Cartier opens the door to further high-end sales - say, perhaps, the jewellery buyer who wants a cabinet to store special-occasion pieces.
The "you bring your customers and I'll bring mine" approach has also found favour with Bang & Olufsen. Since joining the network 12 months ago, the audio supplier has been an in-demand party partner for the likes of Audi, white goods manufacturer Miele and Ecurie25.
Bang & Olufsen's general manager for Australia and New Zealand, Julian Kipping, says teaming with like-minded brands helps the marketing dollar stretch further.
Frequently Asked Questions about this Article…
Affinity marketing is the strategy of selling complementary luxury products to the same target market. In Australia, luxury brands are teaming up — via groups like The Luxury Network — to host lavish, low-pressure events where supercar buyers, jewellery purchasers and other high-net-worth customers can be introduced to complementary products (for example, audio systems, bespoke furniture or golf clubs). The idea is to reach the same wealthy audience through shared marketing and personal recommendations rather than hard-sell showroom tactics.
The Luxury Network is an introduction agency for purveyors of prestige products that was established in Britain in 2007 and set up in Australia in 2011. Within two years of launching in Australia it had about 100 members selling everything from supercars to artisan chocolates and targets roughly 150,000 cashed-up Australian customers.
Member companies pay an annual fee to join The Luxury Network in Australia — the article cites fees between $8,000 and $30,000 a year. That fee provides an entrée to exclusive functions where members can showcase wares, access other members’ customer databases and discuss joint marketing opportunities.
According to the financial services sector definitions cited in the article, individuals with investable assets of $1 million (excluding their home) are classified as high-net-worth, while those with $20 million and up are considered ultra-high-net-worth.
Wealthy customers rarely buy luxury items because of TV ads — personal recommendation and social connections matter most. Upmarket events let vendors show products in a relaxed setting, tap into other members’ databases, and benefit from introductions within the same social milieu, which often leads to higher‑value, relationship-driven sales.
The article names several examples: supercar club Ecurie25, bespoke furniture maker David Boucher, Rolls‑Royce, Cartier, Bang & Olufsen, Audi, Miele and Titleist (golf clubs). It also refers to artisan chocolatiers and other prestige-product sellers participating in the network.
By co-hosting events and swapping customer access, brands spread the cost of reaching high-net-worth clients and benefit from each other’s credibility. Bang & Olufsen’s Australia/NZ general manager Julian Kipping says teaming with like-minded brands helps the marketing dollar stretch further — for example, Bang & Olufsen becoming an in-demand partner for Audi, Miele and Ecurie25.
Extremely important: the article notes David Boucher, a bespoke furniture maker, gets 99% of his custom via word‑of‑mouth. Showing work at luxury events and partnering with other prestige brands (like Rolls‑Royce or Cartier) opens doors to high-end buyers and additional sales opportunities driven by personal recommendations.
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