Why luxury cards are suited for the discerning individuals of the 21st century | LUXURY CARD
LUXURY CARD
Competing with long-established premium cards just two years after launch
Why is Luxury Card
resonating with Japan's new affluent class? (1)
Have you heard of Luxury Card? With its innovative metal card design and perks not found in traditional platinum cards, it has become a frequent topic of discussion online and on social media. As the only card in Japan to hold the highest rank of Mastercard, the World Elite™ Mastercard®, it is undoubtedly a status card for the affluent. However, it seems to stand apart from the mainstream platinum cards that primarily focus on "value for money." Where does the value proposition of Luxury Card actually come from? We spoke with Taro Iwase, Head of Business Management at the Luxury Card Japan office.
Photographs by SUZUKI TakuyaText by TSUCHIDA Takashi
A metal card—the texture is truly priceless
――Could you tell us the story behind the launch of Luxury Card?
IwaseLuxury Card was established by founder Scott Blum in the United States in 2008. He launched the major American e-commerce site Buy.com (which was acquired by Japan's Rakuten in 2010), and the reason he started Luxury Card was simply because he thought, "There isn't a credit card I actually want to use myself."
――If we're talking about cards for the affluent, there are already options like American Express and Diners Club. Why did the founder feel that there wasn't a card he wanted to use, or that there wasn't a card he desired?
IwaseI believe the driving force behind the launch was the desire to fulfill the need for "something different" and to propose a new lifestyle.
Indeed, until Luxury Card appeared, the de facto standard for credit cards was to repeatedly emphasize benefits such as "buy one meal and get the second free" or "access to airport lounges." Since our customers also request these, Luxury Card provides the same services, but that alone does not create differentiation. Luxury Card responds to the latent need of wanting to possess "something different from others."
The decision to make the card out of metal was also born from the idea that we wanted to be a card that makes the user proud to carry it—a card that supports a part of that person's life.
――But why is a metal card better?
IwaseOnce you actually hold a metal card in your hand, you'll understand. When you experience that weight and substance, existing plastic cards will feel flimsy, almost like children's toys. It is the joy of knowing the real thing, and owning the real thing.
――There are rumors that other premium card companies have also released metal cards.
IwaseYes. I believe this trend will continue to expand.
However, Luxury Card is particularly committed to texture. We have received feedback from our customers saying, "It's great because it has a more substantial feel."
――Recently, there are more opportunities to pull out a credit card, so I'm also concerned about how it looks to others.
IwaseThat's true. And since you hand the card to store staff, its weight and presence are conveyed to them as well.
We are also meticulous about the card design so that you can feel proud to carry it. In fact, it took us two years to achieve the finish we were satisfied with. We hold 46 patents related to card manufacturing, and each Mastercard logo is individually machined over the course of more than 20 minutes. The engraving is done by machine specifically for this purpose.
――I heard the top-tier Gold Card is coated in 24-karat gold.
GOLD CARD
A top-tier card with an exceptional presence, featuring 24-karat gold plating on stainless steel. Invitation only. Annual fee for primary cardmember: 200,000 yen (excluding tax).
BLACK CARD
Stainless steel with a matte black coating. Its understated, non-reflective impression is overwhelmingly different from other companies' black cards. Annual fee for primary cardmember: 100,000 yen (excluding tax).
TITANIUM CARD
Stainless steel with a brushed finish. The beautiful hairline finish adds even greater depth to the substantial weight of the card. Annual fee for primary cardmember: 50,000 yen (excluding tax).
→ Click here for card features
IwaseYes. We commission the plating from the same factory that handles NASA's equipment and manufactures the Oscar statues.
――With an all-metal construction, how do you handle the IC chip?
IwaseThe IC chip uses the rare metal palladium, and we are the only ones in Japan to feature the latest miniaturized chip. Naturally, our security measures are also impeccable.
――The packaging is also unique. It's not just an envelope; the card arrives in a box.
IwaseWe place great importance on the first impression. We want you to enjoy a surprise from the moment it arrives. Scott himself deeply identifies with Apple and Hermes for their pursuit of simplicity while maintaining a sense of premium quality, and we carry this philosophy of "simple and easy to use" throughout, from the box the card is delivered in to our mobile app.
Delivery box tailored to each card type.
Delivered carefully in this format, like a precious gift.
Page 02.Concierge service that touches the heart
LUXURY CARD
Competing with long-established premium cards just two years after launch
Why is Luxury Card
resonating with Japan's new affluent class? (2)
Concierge service that touches the heart
――Regarding the "something different from others" aspect, how does Luxury Card perform in terms of service?
IwaseWe are confident in our concierge service, which is available 24 hours a day via both phone and email. You might think other cards also include concierge services, but the difference in quality is obvious.
Luxury Card's concierge service does not use automated voice response systems. Therefore, you won't be kept waiting for one or two minutes before being connected to an operator. This is our commitment to ensure we are not being disrespectful to our busy customers.
――I assume the concierge service itself is outsourced, so why is Luxury Card's special?
IwaseI believe it comes down to passion and conviction regarding the service. Luxury Card began its service in Japan in November 2016, and we have already received high marks for quality compared to the concierge services of our competitors. While the global repeat rate for concierge services averages about 50%, the fact that it exceeds 80% in Japan is proof of our high quality.
――Is that because the service is easy to use?
IwaseI take that fact to mean it is the result of working together with our concierge managers to improve service quality since the very beginning.
What we aim for is to strike a chord—in other words, it is about hospitality.
――This is a personal matter, but I actually had an unpleasant experience with a card company recently. It's so timely, please let me share it. I have been using a classic card from a certain card company for 10 years,
and this summer I finally upgraded to their gold card. I completed the procedure over the phone, and since the operator told me "everything is complete," I was relieved, but a few months later that gold card was suspended. When I panicked and contacted the card company, they told me, "Your payments are overdue."
It seems the bank withdrawal information from my classic card hadn't been transferred, and I was supposed to make a payment by transfer initially. Apparently, that information was listed on my monthly usage statements, but I was so busy with work from summer to autumn that I hadn't opened them. They said they also called me a few days before suspending the card, but I was on an overseas business trip and couldn't answer. I wish they had mentioned it when I did the procedure on the phone, but they didn't. When I told them that, they just repeated the same explanation in a robotic tone.
IwaseThat was an unfortunate experience. The point is, I'm sure that card company did what they were supposed to do. However, when thinking from the customer's perspective, I think there is a lack of simulation as to how that person will feel when told that.
――Yes, exactly.
IwaseI think it is a lack of training. It is our mission to ensure that such cases do not happen.
Page 03.Aiming for a "useful" concierge service that fits your lifestyle
LUXURY CARD
Competing with long-established premium cards just two years after launch
Why is Luxury Card
resonating with Japan's new affluent class? (3)
Aiming for a "useful" concierge service that fits your lifestyle
IwaseConcierge service is a standard service provided by Luxury Card. The point of it is to help customers comfortably save their own time.
As a concrete example, if you need to organize a drinking party soon, you could search online yourself, but it's tough when you don't have time. Moreover, you also have to call to check if seats are actually available. Our concierges take care of all that hassle for you.
Photo is for illustrative purposes only. © PIXTA
If you provide the date, time, location, number of people, budget, and other preferences, we will research whether there is availability on that day and propose several candidates. Once we get the go-ahead, we will complete the reservation and report back to you.
――I see. But can you also make reservations for "cheap and delicious" places, rather than just high-end restaurants?
IwaseIf it is a place where a reservation is possible, yes, we will. Of course, we cannot perform magic, so there are some things we cannot do.
However, a hotel concierge can only help you while you are staying there, but our members can use our service anytime. You can consult with our concierge about anything, from trivial daily requests to event proposals for anniversaries, and from simple searches to difficult product sourcing. We want the Luxury Card Concierge to be a presence that saves our customers' precious time and supports them in making their busy lifestyles comfortable.
――So that's why you have an 80% repeat rate due to ease of use.
IwaseYes. And in addition to phone, you can also make inquiries via email 24 hours a day. Also, while some people access us from within Japan, we actually receive many requests from overseas as well. We can arrange airline tickets and hotels. Also, even if you want to send gifts to several people at once, we handle everything up to the card payment, so you don't even need to go to the store.
――You also offer other services regarding restaurant arrangements, right?
IwaseYes. This applies to Black Card and Gold Card members, but if you make a reservation at one of our approximately 50 affiliated restaurants, we will provide a ride in a Tesla Model S from within Tokyo to restaurants in the 23 wards (*we currently offer the same service in the Kansai region as well). Also, for Gold Card members, you can choose either the ride to or from the restaurant using a Toyota Century.
The purpose of this service is that if you are going to enjoy a wonderful meal, we want the journey there to be luxurious as well.
――In terms of culture, you partner with movie theaters and art museums, right?
IwaseAlthough the number of tickets is limited, our desk can make reservations on your behalf, allowing you to watch movies for free up to three times a month at TOHO Cinemas.
――If you watched a movie for free once a month, that would be over 20,000 yen a year. Thinking about it like that, it's quite a lot of value.
IwaseAlso, regarding art museums, we partner with The National Art Center, Tokyo; The National Museum of Modern Art, Tokyo; The National Museum of Western Art; The National Museum of Modern Art, Kyoto; and The National Museum of Art, Osaka, where you and one guest can view collection exhibitions and special exhibitions for free.
You can also enjoy our quarterly magazine, "LUXURY MAGAZINE," which introduces excellent global culture.
We do not outsource the editing; our specialized team at headquarters handles it themselves.
In Japan, you can read it in a digital book format, in both English and Japanese.
――These are all services I would want to use. I also feel a newness that doesn't exist elsewhere.
IwaseLuxury Card is a latecomer to the credit card industry. But that is precisely why I think there are services we can provide.
It is our pride that many of you who resonate with "something different from others" have chosen Luxury Card.
――I see. It seems the "heart" aspect is the key to a 21st-century status card. I feel I now understand the background of how Luxury Card was born into the world among the many existing card services.
Starting from the Fall 2018 issue, features include private yachts and Paris. The high-quality content and editorial policy of proposing a unique lifestyle stand out.