Luxury brand collabs: Creating magic or mediocrity?

During my recent visit to Shanghai, I had the privilege of seeing the Louis Vuitton x Murakami collaboration at their pop-up store. This experience transported me back to my years in Japan, where I was living when the first Louis Vuitton collection with Japanese artist Takashi Murakami was launched in 2003. I vividly remember the palpable excitement and buzz it generated. The impact was immediate and profound, breathing new life into the brand and setting a new standard for luxury collaborations that remains relevant even in 2025. At the time, I had a front-row seat to witness how this collaboration rejuvenated Louis Vuitton. The fusion of Murakami’s vibrant, pop-art aesthetic with the house’s classic monogram was nothing short of revolutionary. It wasn’t just a new product line; it was a cultural phenomenon that resonated deeply with the Japanese market and soon spread globally. The collaboration seamlessly blended high art with luxury fashion, appealing to a younger, more diverse audience while maintaining the brand’s prestigious image. Over two decades later, the resurgence of this collaboration proves its enduring appeal. The relaunch, featuring over 200 products, demonstrates how a well-executed partnership can stand the test of time, continuously captivating new generations while satisfying nostalgic cravings of long-time fans like myself. However, this level of success is rare in the world of brand collaborations. In my consulting practice, where I’ve analyzed hundreds of partnerships, I’ve found that most fail to achieve their intended impact. The critical success factors that separate the extraordinary from the mediocre are multifaceted and interconnected. A successful collaboration requires a logical link between the brands, bringing something new to the market with a wow factor that makes consumers stop and take notice. It demands intentionality in every aspect, from product design to marketing strategy. Risk-taking is crucial — pushing boundaries and challenging conventions can lead to breakthrough success, as we saw with the reimagining of Louis Vuitton’s sacred monogram. The outcome should be greater than the sum of its parts, producing something neither brand could achieve alone. Ideally, the partnership should help both brands reach new customer segments without alienating their existing base. The outcome of a collaboration should be greater than the sum of its parts, producing something neither brand could achieve alone. One often overlooked yet crucial element is the human factor. Clients and consumers want to understand who is behind an idea and the rationale behind it. This personal connection can make or break a partnership, as evidenced by other successful collaborations like Dom Pérignon and Lady Gaga, and Ferrari and Richard Mille. The Dom Pérignon x Lady Gaga partnership brilliantly merged the world of fine champagne with pop culture. Gaga’s deep involvement in the project was key to its success. She worked closely with Dom Pérignon’s chef de cave, Vincent Chaperon, engaging in a dialogue that spanned music, dance, light, color, and time. Gaga even created, in partnership with Nicola Formichetti, an enthralling sculpture featuring a magnetic dress that encased a jeroboam of Dom Pérignon Rosé Vintage 2005. This collaboration brought something otherworldly and fantastical to the champagne brand, expressed through Gaga’s unique artistic vision. It transcended the typical celebrity endorsement, offering a fresh, exciting perspective on luxury that resonated with both fans and champagne enthusiasts alike. Similarly, the Ferrari and Richard Mille partnership produced the RM UP-01 Ferrari, the world’s thinnest mechanical watch at just 1.75mm thick. Despite its astronomical price point of $1,750,000, the limited edition of 150 pieces sold out. The watch’s design was inspired by Ferrari’s instrument cluster, creating a tangible connection between the timepiece and the iconic sports cars. This collaboration pushed the boundaries of watchmaking technology while perfectly aligning with both brands’ commitment to precision engineering and innovation. It successfully combined two extraordinary brand audiences, appealing to both watch enthusiasts and Ferrari aficionados. The human factor was evident in this collaboration as well. The RM UP-01 Ferrari was the result of extensive collaboration between Richard Mille’s and Ferrari’s design and engineering teams. This hands-on involvement from both sides ensured that the final product truly represented the essence of both brands. However, when these success criteria are not met, collaborations can backfire spectacularly. They risk diluting brand identity, confusing consumers, or simply falling flat in the market. The luxury industry is littered with forgettable partnerships that failed to create any meaningful impact. As luxury brands increasingly turn to collaborations as a growth strategy, it’s crucial to approach these partnerships with strategic excellence and an eye for detail. Brands must dare to be different, challenge the status quo, and create truly innovative products or experiences. The goal should not be to simply attach two brand names to a product but to create something magical that captures the imagination of consumers. As someone who has advised brands on successful collaborations and analyzed countless others, I urge luxury brands to embrace this challenge with intentionality, courage, and creativity. More than 90% of collaborations fail. However, the rewards for those who get it right are immeasurable. Ask yourself: Are you creating magic or mediocrity? This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders,” and advisor to some of the most iconic luxury brands in the world. He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts in-person masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his online luxury masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. Listen to his Future of Luxury podcast.

Luxury brand collabs: Creating magic or mediocrity?

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Published February 03, 2025

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Luxury brand collabs: Creating magic or mediocrity?