A recent article in the Globe and Mail's Report on Business suggests that well-heeled consumers are coming back into the market.

It is no secret that the carriage trade was hard hit during the recession. As a consequence, many of these savvy brands are returning to a revitalized approach to customer service as a business model.

Few of you probably realize there is such a thing as the "Luxury Institute.” Based in New York (where else?), they consider themselves the voice of the high net-worth consumer. They claim that top tier brands are gearing up for a renaissance, and that includes a new focus on "uber-service.”

Here are but a few creative tactics recently launched by some famous luxury brands:

• Toronto's Hermes store brought in an engraver to personalize bottles with customer's initials (apparently fragrance sales doubled)!

• Holt Renfrew, who recently replaced its top management, is formalizing its "random acts of kindness” program, sending special gifts to its top customers.

• Tiffany sends personalized messages (snail-mail and electronic, in their iconic blue colour palette), suggesting new merchandise customers may enjoy.

Consumers are starting to open their minds and their wallets to luxury again. However, the big differentiation in choosing their brands will most certainly be the level of service they are perceived to offer.

We'd love to hear from you.  If you have any comments on this topic, please forward them to Janice Johnston at jjohnston@adcomcommunications.com.

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