Gen Z’s high expectations are redefining luxury brands

Asia’s luxury markets are undergoing a profound transformation. After spending considerable time in the region over the last decades, particularly this year with six trips to Asia and three to Africa, I’ve witnessed firsthand the monumental shift in wealth and, more critically, the evolving expectations of the new generation of luxury consumers. Booming markets like Japan, Singapore, Hong Kong, and Korea are defining the future of global luxury. The staggering growth in wealth across these nations, with China alone expected to double its number of millionaires and billionaires over the next few years, is only part of the story. The real potential of the region lies in the shifting mindset of an increasingly sophisticated clientele, where expectations are soaring higher than anywhere else in the world. State-of-the-art shopping Asia is home to some of the world’s most exquisite luxury malls, some of which I advise on state-of-the-art luxury experience delivery. These malls are not merely shopping destinations but creators of highly personalized shopping experiences unmatched elsewhere. Walking through The Shoppes at Marina Bay Sands in Singapore, Pacific Place in Hong Kong, or Ginza Six in Tokyo, it becomes evident that these spaces are stages where the world’s most desired brands are present, offering clients unparalleled service. The precision with which sales associates engage clients here is unrivaled. From personalized VIC (Very Important Client) experiences to secluded lounges for top clients, the service standards in Asia are the highest in the world. When I train sales teams across the region, their deep understanding of products and impeccable sense of timing stand out, leaving no room for error. Great expectations This level of expectation is driven by the new generation of luxury consumers, Gen Z. While their parents may have been drawn to traditional symbols of wealth, Gen Z seeks something more—they want the ultimate experience and inspiration. They are hyper-aware of the values behind the brands they purchase, demanding that those brands align with their own. Social-media natives, Gen Z sees the brands they buy as symbols of their public persona. Because they spend so much time online, they crave real-life experiences that create meaning. This is what I call the need for brands to create “cultural capital,” which goes beyond merely creating amazing products. The brand itself becomes more important than the product, a concept many brands struggle with. Holistic luxury The challenge for luxury brands is clear: the days of simply showcasing a beautiful product and expecting clients to buy are long gone. I’ve recently heard luxury managers claim, “our products sell themselves on autopilot.” Nothing could be further from the truth, especially in Asia. Luxury is a holistic experience, and every touchpoint matters. Loyalty and desirability must be earned every single day. The best brands understand this and are thriving, while others that fail to meet these heightened expectations are falling behind. The pressure to innovate, adapt, and deliver is more intense in Asia than anywhere else. It’s not enough to have an iconic logo or a storied history. Clients here expect a personal connection to the brand, a brand story that feels relevant to their lives, and a level of service that borders on perfection. This explains why some brands are experiencing explosive growth in the region while others are rapidly declining. Brands that succeed are those that recognize this seismic shift and make the necessary adjustments to meet these new expectations. For struggling brands, the answer lies not in replicating the success of others but in understanding where they themselves fall short. Blaming the market will only amplify the problems. When brands decline, they have only themselves to blame. Having worked closely with many luxury brands, I’ve seen firsthand the difference between those that adapt to these principles and those that don’t. Brands that fail to recognize the need for a deeper, more sophisticated connection with their clients in Asia are losing ground. The market here is unforgiving, and there is no room for complacency. This is why I believe the need for a brand audit has never been more critical. A comprehensive audit that evaluates not only the brand’s product offering but also its storytelling, customer experience, and ability to connect emotionally with this new generation of consumers is essential. It’s no longer enough to be a global name. Luxury brands must be able to localize their stories while maintaining the essence of what makes them unique. Brands that succeed in Asia are those that embrace the challenge of delivering a luxury experience that goes beyond the product and taps into the emotional and cultural desires of their customers. Luxury is about relevance. The brands that thrive in Asia create environments where clients feel like they belong, where every interaction is a moment of significance. This is the future of luxury, not just in Asia, but globally. Either you create cultural capital, or you don’t. As I reflect on my time spent in these markets, the message is clear: the game of luxury has changed. Brands must audit their readiness for this new game, one where the customer demands more than ever before and where only the most sophisticated, well-crafted brand stories and experiences will suffice. Asia is leading the charge and the change. Are you ready? 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. Sign up for his masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Gen Z’s high expectations are redefining luxury brands

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Published August 18, 2024

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Gen Z’s high expectations are redefining luxury brands