80% of the foreign brands fail in Monaco and here is why.
First of all let’s clarify that reaching out the UHNW demographic takes more than just pretty pictures, products and expensive events. It takes bringing them information that is relative to them by someone they trust.
Why brands come to Monaco:
Typically, foreign brands and businesses are coming to the Principality of Monaco for two reasons: product launch or for finding new business partners (investors).
The first mistake they make is that they want make it happen overnight. When dealing within the UHNW community there is no such thing as a “Get Rich Program or result with a Magic Pill”.
The Principality Monaco is a very niche market with the most millionaires per capita in the world, and in this environment of accomplished HNWI’s, one event is not enough to close a deal.
Many brands organise fancy one-night events, gourmet dinners, cocktail parties and presentations, but in a country which offers over 700 official events per year and further 3,000 private events, a one night event or presentation will hardly generate results.
In addition, it is important to consider whether your target group will actually attend to those type of events. In Monaco and the Cote d’Azur there are hundreds of lifestyle clubs offering networking nights, wine tastings and parties. However, most of their members are coming from the surroundings of Monaco. Therefore, real business and creating deal flow rarely happens among these audiences. These guests are more likely to attend because of the social factor and complimentary drinks, which is fine if your event is catering for this clientele, but not good if you want to generate business.
“We often see that “lifestyle clubs” in the area are trying to position themselves as able to also provide a business environment offering them a “Monaco Luxury experience” with Monaco leaders. However last time when I was invited to one of these venues it was interesting to see that almost nobody was there from Monaco.” So the promise of meeting genuine deal creators is slim – says André C. Perry, CEO of Monaco Wealth Management and co-author of Monaco: The Essential Relocation Guide
To conclude, by simply putting a price tag on a product and shouting it around loudly is not enough. This was also the reason why Monaco Wealth Management decided to launch its UHNW Business Club early this year. Its sole vision is to create business deal flow.
The second mistake that many brands or companies make is that they do not invest heavily into the proper pre-qualification process.
In order to generate interest and convert it to an actual sale, you need to have a long-term vision for Monaco. Aim for the synergy of understanding, educating, pre-qualifying, presenting, following-up and sales closing. These steps are vital in the road to success in Monaco.
If the only thing you do in Monaco is to make a one-night event, then the next day nobody will remember to your brand message. Yes a one-night event is cheaper, but will it bring you any return at the end?
Successful businesses need to be looking at a long-term business awareness campaign in Monaco, which can educate their target groups and land them as potential clients. Period.
By gaining access to the Monaco Who’s Who directory by Monaco Wealth Management, brands have a chance to create educated guests selections and approaches. Therefore, they are able to ensure a return of investment with the right prospects.
There is no polite way to phrase this: Cheap Mentality.
In the Principality of Monaco the average household has over 3 million Euro (and not to mention the wealth of the ultra-rich) and 1 in 3 persons are millionaires. Coming to this environment with the aim to conduct discounted events in already a bad indicator.
“If you are not ready to invest into your future clients, then why do you expect them to invest into you?” – asks Zsolt Szemerszky, Founder of Monaco Wealth Management and co-author of Monaco: The Essential Relocation Guide
99% of opportunities are lost by incorrect implementation; these are the cases when the excuse becomes the idea.
Being cheap in mentality and trying to sell to HNW & UHNWI’s is one of the worst things you can do in this community.
Interestingly 70% of people working in the international luxury-marketing segment do not know what luxury truly is. When they start to compare the numbers saying that in Monaco there are few residents compare to the population to for example London, they already failed. The Principality is a concentrated area of the super-rich. Moreover, to be honest oone person that can afford your product is more valuable than a million that cannot.
“Luxury marketing and dealing with UHNWI’s is all about the WHO and not the How Many. When people start to compare the number of subscribers or how many leads will I get, I already know that they have no experience with the ultra-rich.” – says André C. Perry, CEO of Monaco Wealth Management and co-author of Monaco: The Essential Relocation Guide
A positive example:
At Monaco Wealth Management, we often work with international and local Monaco brands in creating their brand awareness campaigns. In one of our recent projects, a Monaco based real-estate agency contacted us. It is a 100% Monegasque family owned business so one should ask why they would need us.
Well, because they clearly understand that the ultra-rich does not buy in one night. They are looking for trusted providers and trust is something you need to earn, especially in Monaco. For this reason, we created for them educational articles that offered valuable information to their targeted audience:
- The Real-Estate Future of Monaco
- How to buy a property in Monaco
- 2018 was a good year for real estate in Monaco
Thanks to the targeted approach and creating the messaging to a defined target group, their brand awareness indicators skyrocketed already in the first months.
“Thanks to Monaco Wealth Management we saw more real-estate requests already in the first month of our Premium partnership. We know that it takes time to have real estate sales in the unique real-estate market of the Principality, but with Monaco Wealth Management we are on a good way.” – Christian Miceli, Associate Manager at CM Monaco Real Estate
Something to digest:
Respect your potential prospects that their level of influence requires.
Monaco is a very small place and a good impression creates a positive buzz, shortening the road to achieve your personal or business goals.
You can find amazing local partners in Monaco to achieve your aims. Many people believe that they can do the work themselves however; they underestimate the value of a local partner. This is a huge and costly mistake.
The social capital is the highest importance when you come to Monaco, because you need to target the right people. This is why brands first question always should be “Who will be the desired guests”? (Not the partygoers) who will not generate revenue.
Having the right local partner next to you can be costly at first sight; however, it is never as expensive as doing things in an amateur way.
“Everything that brings you result cannot be considered expensive. The only thing that you can call expensive are those things that do not bring you any result, like a simple coffee without business order at the end.” – says Zsolt Szemerszky, Founder of Monaco Wealth Management and co-author of Monaco: The Essential Relocation Guide
Aim for the business results, instead of the shiny glamour and complementary drinks.