A PRIVATE business club that brings together well-heeled clients and luxury brands such as Gucci, Ferrari and Sunseeker Yachts has unveiled plans to launch in Scotland next month.
The Luxury Network, which already has 28 international offices, has invited companies including Aston Martin and Bulgari Hotels to its invitation-only launch event at the Renaissance golf club at Archerfield and is aiming to add up to 30 member firms over the next 12 months.
UK managing director Rowan Kelshaw said: “Many luxury brands dabble in affinity or partnership marketing, but most never get off the ground.
“The beauty of The Luxury Network is that we do all the hard work – we have the contacts to identify the best brands and put like-minded directors in touch with each other, usually by inviting them to high-quality corporate events such as the Monaco Grand Prix.”
As part of its Scottish launch, the firm will gather 20 of its UK members for a two-day business development, golf and leisure experience next month. It has also organised a networking event with Aston Martin Edinburgh, to be held tomorrow.
Kelshaw said: “We know The Luxury Network works, so we want to use the Scottish launch to attract more members from Scotland. Our aim is to add 25 to 30 new members from Scotland over the next 12 months.
“We are currently speaking to a host of high-quality Scottish brands and the interest in The Luxury Network has been extremely encouraging.”
The company said previous affinity marketing exercises have seen Italy’s Pagani selling a £350,000 supercar in the first 24 hours at a networking event in London, while Ferrari and watchmaker Panerai joined forces on a collection preview for private clients that led to 38 watches worth a total of more than £320,000 being sold within three hours.
Renaissance founder Jerry Sarvadi said: “This type of affinity marketing offers a unique benchmark to develop similar ‘power’ networking events, with high net worth individuals. This type of activity will encourage other luxury businesses from around the world to become involved in this type of business development.”
Other companies that have been invited to the East Lothian golf club include all-inclusive holiday operator Club Med, private air charter firm SaxonAir and online timepiece retailer Watchfinder.
According to a recent survey by Singapore-based researcher Wealth-X, 72 per cent of luxury industry executives have used affinity partnerships to target “ultra high net worth” clients – defined as those with net assets of more than £19 million – and 78 per cent found they were particularly helpful in expanding their customer base.
Its study also revealed a bullish outlook for the sector, with 92 per cent of respondents expecting to see an increase in revenues during the course of 2015.
Wealth-X said: “Although there are numerous advantages to having affinity partners, two stand out: the ability to expand one’s client base and increase brand prestige.”