‘Luxury’s storytelling crisis is costing billions’

The luxury sector is facing its most challenging environment in a decade. After experiencing unprecedented growth following the pandemic, consumer appetite for luxury goods has cooled dramatically. This shift is reflected in broader economic sentiment. In the U.S., consumer confidence has declined sharply: the University of Michigan’s Index of Consumer Sentiment dropped to 52.2 in April, down from 57.0 in March — and a significant fall from 77.2 a year ago. This adds fuel to the fire, as interest in luxury has waned since 2024 in the wake of industry-wide price increases, dissatisfaction with brand experiences and customer service, and many brands’ failure to connect with and inspire the next generation of luxury clients. The once unquestioned demand for luxury is fading, replaced by uncertainty, scrutiny, and a new consumer mindset that demands more than logos and price tags. In many conversations with luxury managers and ultra-high-net-worth clients, it’s clear that today’s luxury consumers are more discerning, less loyal, and increasingly skeptical. This is especially true for Gen Z, a generation of master brand builders who are curating their own personal identities with precision. As such, they are scrutinizing every brand’s narrative — searching for authenticity, purpose, emotional resonance, and alignment with their own values. Brands that once stood apart now risk blending into a sea of sameness, their stories diluted by conformity and trend-chasing. Gucci: From cultural icon to cautionary tale No brand illustrates this transformation more starkly than Gucci. In the first quarter of 2025, Gucci’s revenue plummeted 25%, adding to a seemingly never-ending series of negative quarters, with store traffic and wholesale both sharply down. Despite surrounding itself with an unprecedented number of celebrities and influencers and appointing Demna as artistic director, the brand’s cultural momentum has stalled. Once celebrated for its unapologetic self-expression and bold storytelling, Gucci has, in the eyes of many, become just another luxury option. No longer the conversation starter, but the background noise. What was once a master storyteller has devolved into little more than a label in a world crowded with labels. The root cause isn’t just macroeconomic headwinds or shifts in creative leadership. In fact, I’ve heard many Gucci clients say that they like the product lineup and quality. Rather, it’s the loss of messaging clarity that is costing the Kering house significantly. By moving away from its core identity (aka its “brand story-driven roots”), Gucci has eroded both its cultural currency and emotional connection with clients. The result is a brand that feels less relevant, less essential, and, crucially, less desirable. Why storytelling is your ultimate growth driver In this new reality, the principles of excellent messaging and storytelling are not just important; they’re essential to igniting the next wave of growth. When executed well, client-centric brand storytelling can unlock the full perceived value of a brand — up to 98% or more. However, many companies treat storytelling as an afterthought or confuse it with a marketing campaign. Without a compelling, authentic brand story, even luxury brands with high awareness and a long heritage risk irrelevance. As younger generations take over as key clients, storytelling becomes the primary lever for differentiation, value creation, and long-term success. Today’s luxury clients are buying much more than a label or quality products. Fundamentally, they’re buying stories that reflect their own values, aspirations, and identities, with the expectation of a positive perception shift. Hence, the psychological drivers of luxury need to be reflected in the brand narrative. Brands now need to offer meaning beyond status and invite their clients into a world of emotional engagement and cultural resonance. This is the only way they will grow going forward. Elements of an effective luxury story What does great storytelling look like in luxury today? It is radically client-centric, built on the “4Es of Luxury” framework that I’ve consistently advocated: Emotion, experience, engagement, and exclusivity. Storytelling for the next generation of luxury clients must be immersive, participatory, and clearly define the brand’s role in the life of the client. The question — what do you really sell? — has never been more critical. Most brands, if they are brutally honest, don’t have a clear answer. The era of easy growth is over. Only those brands that fully commit to authentic, client-centric storytelling will thrive, while others risk dramatic decline. Now is the time to invest in refining your brand story, reconnect with your core values, and inspire your clients with messages that truly matter. Will your brand lead the next growth wave? 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.

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‘Luxury’s storytelling crisis is costing billions’