Where luxury goes wrong in sales — and how to fix it

The luxury industry faces a brutal reality: many brands are “luxury in ambition only.” Despite lofty goals and premium price tags, these brands consistently fail to connect deeply with their audiences, missing the mark in creating truly resonant luxury experiences. This disconnect stems from a fundamental lack of emotional intelligence training within luxury organizations, particularly at the crucial point of sale. The concept of emotional intelligence in luxury goes far beyond providing exceptional customer service. It’s about understanding and responding to the subtle emotional cues of clients, tapping into their deepest desires and aspirations. This is where my 4E framework for luxury comes into play: Emotion, Experience, Exclusivity, and Engagement. These four pillars form the foundation of true luxury, yet many brands struggle to implement them effectively, especially in their customer interactions. In my luxury masterclasses, I consistently observe how challenging it is for sales teams, even highly experienced ones, to unlock what I call the “emotional key” of clients. This emotional key is the gateway to creating meaningful connections and delivering experiences that truly resonate. Yet, time and again, our mystery shopping exercises reveal significant shortcomings in brands’ ability to create these emotional connections and convincingly convey their brand stories at the point of sale. This gap between luxury ambition and execution highlights a critical need: comprehensive and ongoing training programs. These programs must go beyond teaching product knowledge or basic customer service skills; they must focus on developing emotional intelligence, storytelling abilities, and a deep understanding of the brand’s DNA and value proposition. Effective training in the luxury sector should encompass several key areas. First, it must instill a deep understanding of the brand’s values and unique selling propositions. While this may seem like a no-brainer, in reality, I often observe the opposite — training programs that fail to demonstrate how to inspire around the brand story and break free from the “sea of sameness.” Sales associates should be able to convey compelling stories that connect brands to the client’s personal aspirations. This requires flipping the script from a product-centric to a client-centric perspective. Secondly, training needs to focus on developing acute listening skills and emotional intelligence. Luxury sales are not about pushing products, which can be counterintuitive for many salespeople who are incentivized to sell items. Therefore, sales associates need to be adept at reading subtle cues and tailoring their approach accordingly. Thirdly, training programs should emphasize the art of creating memorable experiences. This goes beyond the transaction and involves curating moments that surprise and delight clients, making them feel truly special and valued. Moreover, in an era where digital and physical experiences are increasingly intertwined, training must also cover how to seamlessly blend these areas. Sales associates should be comfortable using digital tools to enhance the in-store experience, accessing client preferences and history to provide personalized service. The importance of continuous learning cannot be overstated. The luxury landscape is constantly evolving, with new technologies, shifting consumer preferences, and emerging markets. Regular masterclasses and workshops can help keep staff updated on these trends while providing fresh perspectives on luxury service. My most exciting projects always combine a strategic recalibration of brand storytelling with comprehensive training across the entire organization, ensuring that luxury is consistently perceived by clients at every touchpoint. It’s crucial to note that this emphasis on training is not just about improving sales figures; it’s about elevating the entire brand experience. When every interaction with a brand — from browsing a website to post-purchase follow-ups — is infused with emotional intelligence and brand storytelling, it creates a cohesive and compelling luxury experience. This, in turn, builds brand loyalty, encourages word-of-mouth recommendations, and justifies significant price premiums. When every interaction reflects emotional intelligence and brand storytelling, it creates a seamless luxury experience that builds loyalty, drives word-of-mouth, and justifies higher prices. Luxury brands must recognize that their most valuable asset is not their products but their people. Investing in comprehensive, ongoing training programs is therefore essential for any brand that aspires to true luxury status. By equipping their teams with the skills to unlock emotional keys, create meaningful connections, and deliver exceptional experiences, luxury brands can bridge the gap between ambition and reality. The luxury brands that will lead the change in 2025 are those that prioritize the human element. They will invest in developing emotionally intelligent, brand-savvy teams capable of bringing the brand story to life in every interaction. In doing so, they will create deeply resonant, truly luxurious experiences that today’s discerning consumers crave. The others will stay “luxury in ambition only.” 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.

Where luxury goes wrong in sales — and how to fix it

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Published December 30, 2024

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Where luxury goes wrong in sales — and how to fix it