EVERYTHING is LUXURY
The Private Client Standard is a curated resource of best practices for real estate and lending professionals working with the high and ultra high net worth constituency.
Aldo Gucci would be doing cartwheels down Las Vegas
Boulevard if the late fashion scion were alive today. Why?
Because of the avenue is bedazzled with the golden backlit glow behind
that gorgeous capitalized Garamondesque “GUCCI” lettering that adorns its
five stores along the short 2.2 mile distance between the Fontainebleau and
the Cosmopolitan properties in the City of Sin.
Aldo was a phenomenal case study in pandering to the
fully-uddered new sensibility of maximum indulgence with everything from water
bottle holders to cursory items of the household. His contemporaries in the current brand
scenario have gone a step further to milk the consumer by introducing such
things as logoed luggage stickers for $80.
By saturating the marketplace with so many stores holding
a smattering of irrelevant tchotchkes (despite the
number of newly-enriched available customers flush with casino winnings), notable brands like Gucci have thumbed
their nose at the true definition of “luxury” (also known as “amenance” as the
alternative to the overused term that has lost all meaning). Turning over any brand of note into
the wrong hands – whether it be a cherished private club, restaurant, hotel/private
condo residences, or corporate enterprise – will garner similar slippage in
prestige. And sadly enough, it
happens under our collective eyes all the time and without much warning and reputation
is compromised in perpetuity.
While it is true that Dawn Mello and Tom Ford were able to
salvage the brand from becoming the duty-free choice du jour for a good run of
success (1989 to circa 2000), the string of so-called creative directors had
degenderized and fumbled with the company’s unmistakable ethos of pure
sophistication after its Renaissance period that peaked a couple of years
before Ford’s departure in 2004. Coupled
with endorsements by celebrities festooned in bright head-to-toe interlocking
G’s ensembles, the company has punted a world-class brand foul making true
Gucciites wonder, “Did I take a wrong turn somewhere?”
The answer, “yes, you did!”
In the case of that stretch of Las Vegas Boulevard, you forfeited your
right to explore the true essence of luxury the moment you entered any of the MGM
Resort properties on the Strip. While
remnants of the creative genius of Steve and Elaine Wynn still remain within
the locales they created like the stunning fountains and Chihuly entry ceiling
sculpture at the Bellagio, the magic of the legendary attention to detail and
prolific sense of customer care has left the building – almost as if a rewind
button is pushed on a daily routine without much thought to what might be the
next thoughtful strategic plan. Through
saturation, Gucci did the same thing through its bevy of convenience locations
– except for one where idealized memories of gracious excess is an oasis in a
sea of glitzy monotony.
Imagine a place where sophistication is still an acceptable
norm – where a classic sunglassed woman in a Chanel suit is welcomed through
the grand entrance at the same time a cadre of young bikini-clad women emerging
from a stretch SUV are politely referred to use the side door. An aura of security, sense of spectacular self-awareness,
and opulent deliciousness is embedded in everything including each of the
tassels that adorn many of its decorative arts.
The resort that bears the Wynn name is once again without its creator – but
remains in the succession of other properties created by its founder as the sole
outpost of exquisite taste on the legendary boulevard. As such, the only location befitting a
legendary brand like Gucci is within its perimeter berm.
What can brands like Gucci learn from these observations?
Exclusivity is not a negative: It takes a number of different forms
including scarcity. While the original Gucci
location that I remembered in my 20’s at the Forum Shops at Caesar’s Palace was
iconic and squarely identified with the logo ensconced in one of the Roman temple
pediment façades,
the premium space is now occupied by Zegna with Gucci dwarfed next door. While all notable design houses have taken
similar tracks in littering their presence with wild abandon throughout the
city, the psychological underpinning is the reality that many mainline luxury
brands are no longer regarded as special or relevant. The demographic will seek out the product it
desires and has no problem traveling several blocks to access it – and the Wynn
is the natural point of entry for those who demand exacting quality. If a product is available on every street
corner, it loses its mystique and allure.
Personalization [Not Poison1] is our Potion:
I was most certain that Gucci had given up its premier abode in the Forum Shops
for a space next door, so I decided to call the local (702) phone number for
the store. I was promptly routed to “Gucci
Client Services” where I asked to be connected to the store floor and was
tersely rebuked – “we can answer anything you’d like to know.” I asked my question about the space and was
reassured by the imperious robotron woman void of personality that they had not
moved. Not satisfied, I called the Forum
Shops Leasing Office that confirmed that they indeed did move. The point being is that the relationships the
demographic desires is not with central casting, but with professionals in the
field at stores who can answer as a matter of conversation simple questions
like, “what do you see foreign buyers gravitating to?” or “what’s the best show
right now on the Strip?”
Commonalities and conversations build rapport which leads to
creating opportunities that foster brand allegiance and evangelism. While I have been a leading advocate of Gucci
since my youth, it has done its best to file for divorce through a series of outrageous
actions that only Aldo’s edgy spirit could conjure to make me flee from such
matrimonial bliss. Keeping it local
while retaining a big picture of style is how on-point brands thrive. The Wynn’s overarching ‘attitude’ reinforces what
everyone employed on its property (regardless of company affiliation) shares
about the root of its success: ambassadors of exquisite customer service
everywhere and at all times.
Even the historic greats like Gucci and numerous other style
icons can sometimes meander into the briar patch on accident to follow the
allure of cold hard currency. The
smallest of details mean so much to the demographic and its perception of the brand. Staying power in the luxury market is defined
by careful patience that takes years to nurture – and it is our hope that Gucci
will regain its position that would make the spirit of founder Guccio beam with
rejuvenated pride.
1“Poison
is my Potion” was an advertising campaign by Dior to support the perfume of the
same name in 1987/88. It is said the
campaign was a spirited response to Yves St. Laurent’s Opium and Calvin
Klein’s Obsession.
What 36 years will do (in the photos above) . . . I decided to tell a more personal story as it reflects on a lesson in service delivery. While I've been involved in private advisory work for years, two years ago I leveraged my 23 years of involvement in real estate to launch an unparalleled boutique client experience by developing The Horswell Collection.The courage to explore new opportunities for clients through expanded service is a path not usually taken when sameness is so much more comfortable. I thought the backstory of this brand enhancement was something that both my advisory and real estate clients would enjoy. You're invited into the skysuite of my imagination on a creative and clear path resulting in exceptional client results.

Meet our subject - Block 216 in Portland, Oregon. Subject to a recent Supplemental Data announcement in its Q4-2024 financial results, Ready Capital disclosed liability related to this real estate holding. After this project advances to formal proceedings, I will release a white paper which chronicles the entire development. Having followed its history since before initial design concept and also helping to author the original winning proposal to represent the condominium units for a former client, we will discuss the psychological, political, financial, marketing, and design implications and how they all blended in concert to form the current framework for investors.
Please review the above video for context to this post:
As chronicled in the last issue of REGENCY Magazine, we discovered how the word "Luxury" has lost all meaning and has resulted in our proposal of a different word to encapsulate that special category of product which truly exemplifies the meaning of something created explicitly for a "patron" - the word "amenance" and in this case, having "amenant" qualities.
Recently, main line "luxury" brands like Kering-owned Gucci (also owning St. Laurent, Balenciaga, etc) and LVMH-owned Louis Vuitton (also owning Dior, Fendi, Givenchy, etc.) have fallen prey to the financial pressures of being associated with larger conglomerates within the sector. Naturally, finding ways to exploit the storied brands for financial gain from the middle-market consumer has created an unfortunate byproduct:
HUBRIS
defined by Merriam-Webster as: exaggerated pride or self-confidence
While creative, the temporary facade of New York's 5th Avenue Louis Vuitton is a telling story about the brand's high opinion of itself. As with human nature, life does imitate art and so-called luxury brands that may be still hand-made to some extent have become poster children to announce that "I have arrived" rather than "I always was."
For those who have long-loved the style, durability, and architecture of a classic horsebit Gucci shoe or the wall-crafted longevity in design of a 1932-inspired Noé bag, there is a great sense of betrayal at the hands of current creative directors at these fashion houses to generalize merchandise into a frenzy of logo-emblazoned pile of trendy products. Gradually, the community of discerning clients who painstakingly select their style accoutrements and dress out of respect for themselves and others have begun to renounce the products that were specifically created for them due to the mass-market sensibilities of the companies that control them today.
What can you do?