Client Affairs
Wealthy Prefer the Ritz
The Ritz-Carlton Hotel chain came out on top as the most prestigious brand, according to the lastest Luxury Brand Status Index, which ranks ...
The Ritz-Carlton Hotel chain came out on top as the most prestigious brand, according to the lastest Luxury Brand Status Index, which ranks 52 luxury brands by wealthy consumers in the US.
Five of the top 10 brands are automobile companies, led by Porsche and Mercedes; three are fashion designers, led by Armani; Four Seasons Hotels also ranks in the top 10.
Ritz-Carlton took top luxury brand honors by consistently taking first or second place in the four individual drivers of luxury status. The hotel chain rated at the top in terms of delivering consistently superior quality.
Porsche was rated the most unique and exclusive brand, edging out Ritz-Carlton. The top two brands that are "used by people who are admired and respected" were hoteliers Ritz-Carlton and Four Seasons, followed by Mercedes. With respect to brands most able to "make the buyer/user feel special" Porsche, Ritz-Carlton and Mercedes took the top three ratings.
Wealthy consumers rated Ritz-Carlton and Porsche equally as brands most worthy of a significant price premium. Lexus and Porsche shared the honor of being the two brands that registered the greatest improvement in their status as luxury brands.
"Contrary to popular myth, it is the wealthy, not the young, who drive trends in luxury. Luxury firms are playing a high stakes game of growing by going down-market without measuring the impact this strategy has on their best customers' relationship with the brand," said Milton Pedraza, chief executive of the Luxury Institute.
The Luxury Institute surveyed more than 200 households, with a minimum of $200,000 in gross annual income and net worth of at least $750,000 (including home equity). The brands to be rated were selected in individual interviews with wealthy consumers and using advertising expenditure rankings in luxury print media to determine the most relevant brands.
More details of the survey can be found on: www.luxuryinstitute.com
