Heads turn as the dashing Dan Balmer walks into the restaurant, just as the elegant British car maker that he represents, lures the world of the wealthy with its 109-year heritage.
But that heritage is being challenged by a new wave of young wealthy clients, particularly those from China.
In early April, Rolls-Royce, for the first time, expanded its demographic to sports car enthusiasts as well as female customers, with the debut of Wraith.
“This time we’re focusing more on the owner, targeting a younger and also female demographic. It is an acceptance which we've never had before,” he says.
With about 65% of its volume in Asia Pacifi c going to Mainland China, the market has become too big to be included in the brand’s APAC business scope.
It is an acceptance which we've never had before.
“Asia Pacific consists of a combination of mature markets where strategies can’t simply be translated for China, which is a self-content and one-united country. The communication in China is a lot more broad based, it has to be looked after by a dedicated team based in China.”
He says China is in greater need for more above-the-line marketing such as motor shows and advertising, as the brand looks to pocket a wider geographic base that is yet to be reached.
In China, exceptionally wealthy individuals have been growing at a rapid rate. While it was usual for them to want to quickly showcase their status, Balmer says it’s an “out-of-date opinion”, at least for the ultra-luxury sector.
“The game is changing in China,” he says.
“Consumption is slowing down and China’s luxury consumers are becoming more discerning. They care more about purchase experience and production process as well as background.”
But it’s not only China that is challenging some long-standing notions of wealth and Rolls-Royce’s consumers. While Balmer admits the ultimate target is wealthy individuals with at least US$30 million in liquid assets, it must also be about segmentation and making sure it is looking at the right areas.
“This is a relationship game. Customers buy our cars usually out of an emotional purchase when they think it’s about time. That feeling may come around anytime so we need to make sure we maintain communication on a regular basis in order to capture that point of emotion.”
Balmer says pumping money into OOH or glossy magazines doesn’t lead Rolls-Royce anywhere, but instead heightens the risk of diluting the brand.
Instead, the ultra-luxury label puts a huge focus and some 70% of its marketing budget into direct activities – from engagement events, private gatherings as well as direct mail.
All this is to establish regular contact with existing clients, who are the best alternative to advertising to pass on information.
Though an increasing amount of luxury brands are venturing into the all-inclusive social media realm, it is not something Rolls-Royce is rushing into.
“Social media is not about the amount of likes or followers, but more of a general feeling that we are going in the right direction. For us, Facebook is about delivering an overall brand message to a wider public, a means to build a foundation of public approval to sell to the clients at the top end,” he says.