Opinion: Four ways luxury brands can regain desirability

The most critical aspect of a successful luxury brand is creating desirability. I often use the phrase “sea of sameness” to describe the abundance of comparable, and consequently underwhelming, experiences offered by brands striving to achieve premium or luxury status, irrespective of their product category. Ultimately, luxury can never be of comparable value. Hence, brands that offer stories and experiences similar to their peers cannot generate the exceptional value expected by their clients. The result is a lack of desirability. Therefore, there is a clear connection between creating desire and delivering extreme value. Desirability transcends mere wants or needs — it’s about forging an emotional connection that elevates a brand to a symbol of aspirational living and personal achievement. Based on extensive research, the allure of luxury brands lies in the anticipation of a transformative shift in perception, both externally and internally. It represents a fundamental emotional and even physical shift that stems from connecting with the brand’s narrative. Desirability is about forging an emotional connection that elevates a brand to a symbol of aspirational living and personal achievement. This is where many brands go wrong. While many brands can create incredible products with quality and craftsmanship, they often miss out on the opportunity to connect with their clients emotionally and inspire them. In luxury, it’s always about the client and their emotional world, with brands serving as mere enablers. But when brands talk too much about themselves, they easily miss the mark. Don’t misunderstand me. In a world of creating desirability, impeccable craftsmanship and attention to detail are critical, making each piece not just an item but a masterpiece. But in luxury, these qualities are simply expected. Although necessary, they are not sufficient to make someone desire a brand. In luxury, no one buys a product or service that is not at the highest level of craftsmanship. What creates the emotional link is the story behind the brand — a narrative so compelling and rich that it makes people feel part of something larger than themselves. I often refer to this as creating cultural capital, and it explains why luxury at its best expression is so closely linked to art, artistry, and creativity. It is about looking into the future while respecting the past. Too many brands are stuck in their history and fail to inspire today and tomorrow. A loss of desirability can signal a brand’s decline into obscurity. In our brand audits, we consistently find that the primary reason for brands underperforming is their lack of distinctiveness in storytelling and their inability to evoke strong emotional responses, resulting in diminished desirability. Luxury demands energy, surprises, calculated risks, and the freedom to dream. Bold brands win; boring brands decline. The No. 1 reason for brands underperforming is their lack of distinctiveness in storytelling and their inability to evoke strong emotional responses. The key to reversing this downturn lies not just in reinventing the brand, but in reigniting the allure that once made it irresistible. The journey to recapture this lost desirability hinges on a series of strategic steps, beginning with a compelling redefinition of the brand story. Here’s how luxury brands can reclaim their allure and position themselves for enduring success. Redefine the brand story to rekindle desire The foundation of any luxury brand’s revival is its story. I urge brands not to confuse this with an advertising campaign. The story should drive campaigns, not the other way around. The brand story must be captivating, authentic, and deeply rooted in the brand’s heritage, yet it should also resonate with contemporary values and aspirations. It’s about crafting a narrative that reflects not just where the brand has been but where it’s going, connecting its historical significance with tomorrow’s insights. Fundamentally, it serves as a reflection of the brand’s core values. I even urge brands to distill their values to one, reflecting the core promise of the brand story. This renewed narrative becomes the cornerstone of all communications, ensuring that every message conveys the brand’s unique identity and renewed vision, thereby reestablishing its desirability. In reality, when we survey the leadership teams of brands across categories, there is almost never a coherent understanding of what the brand represents. Clarity of storytelling is the exception, not the rule, and brands that can address this can gain a competitive advantage. Understand and expand your audience The luxury market is more dynamic than ever, with shifts in consumer demographics, expectations, and tastes. Most brands underperform with Gen Z, which is projected to become the No. 1 client group for luxury by 2030, especially in Asia. A crucial step in regaining desirability is to deeply understand your target audience and develop strategies to inspire them. This involves analyzing trends, conducting direct consumer research, and anticipating future desires. The goal is to tailor your brand’s offerings and marketing strategies to appeal to both loyal clients and new prospects, thereby expanding your brand’s appeal without diluting its exclusivity. Importantly, brands need to show respect for their past. Radical brand resets that attempt to erase history can alienate existing clients and weaken brands rather than strengthen them. Radical brand resets that attempt to erase history can alienate existing clients and weaken brands rather than strengthen them. When Louis Vuitton appointed Pharrell Williams, it was a masterclass in brand transformation excellence. Pharrell respected the brand’s core values, history, and iconic codes, delivering a refreshed vision. The result? A stellar performance and heightened desirability. Many other brands make the mistake of hiring designers and allowing them to break with the past, often with catastrophic results. The fundamental brand story, which, again, is a reflection of core values, should never change. However, to reach new audiences, expressions often need to evolve without severing ties with history. Elevate the customer experience across all touchpoints The allure of luxury is ultimately determined by the excellence of its customer experience. Recent research has shown that around 65 percent of clients who broke up with a brand were dissatisfied with the service. This highlights the necessity for luxury training and continuous retention efforts, an area in which many brands struggle. I always say that the software is more important than the hardware. People seek genuine human connection and inspiration, which often doesn't align with the transactional sales approaches typical of many brands. The client experience must be exceptional (please reflect on what the word means) and consistent across all channels — whether in-store, online, or through social media. Clients choose how they want to engage with the brand, so there can’t be any shortcomings in their experience. From personalized services to exclusive events, every interaction needs to reinforce the brand’s desirability. Similar to shortcomings in brand storytelling, we find significant gaps in the client experience in practically all audits. Brands could address these gaps relatively quickly and with limited budgets, allowing them to boost desirability. Embrace digital innovation while maintaining exclusivity In the digital age, maintaining a sense of exclusivity while engaging with a broader audience online is crucial. Luxury brands must creatively leverage digital platforms to tell their story and connect with customers on a personal level. This could involve immersive virtual experiences, personalized digital shopping services, or compelling content that brings the brand’s story to life. When executed effectively, digital innovation can extend the brand’s allure to new audiences and generations. A call to action To regain desirability, luxury brands must embark on a transformative journey that begins with crafting a compelling brand story and extends across every facet of their operations. By translating their heritage into the future, understanding their audience, enhancing customer experiences, innovating digitally, and ensuring alignment with their core values, luxury brands can reignite desirability. Extreme value creation does not come from doing what everyone else does. It requires brands to think beyond their comfort zone and embrace the extraordinary. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders to Watch.” 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 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. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Opinion: Four ways luxury brands can regain desirability

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Published March 11, 2024

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Opinion: Four ways luxury brands can regain desirability