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Half of the world’s top-end luxury brands on the brink of extinction?
By our News Team | 2023
Branding expert says this is because they don’t have a convincing, precise and emotional story that is told through the eyes of the clients.
Could it be that up to 50% of today’s top-end luxury brands will no longer enjoy the same premium positioning by 2030 – a mere seven years from now?
Daniel Langer, CEO of brand strategy consulting firm Équité and Executive Professor of Luxury Strategy and Pricing at Pepperdine University in California, thinks so.
In a recent opinion article for Jing Daily, a publication covering luxury consumer trends in China, Langer predicts half of the luxury brands we have now “will not survive the transition towards a Gen Z-dominated world, which will be completed by 2030”.
Photo by Antony Trivet from Pexels
He says this is because they don’t have a convincing, precise and emotional story that is told through the eyes of the clients.
“And where there is no story, there is no extreme value, as the story can carry 99 percent or more of the total perceived value in luxury,” he writes.
“So, the most fundamental risk in luxury is to be without a differentiating story which answers three questions: What do you really sell? Which emotion do you evoke? What can your customers do differently through your brand?
“If a client does not understand how and why a brand differs on these dimensions, I can predict with near certainty a massive value erosion.”
The modern view of ‘Made in Italy’ is an example of brand erosion
Langer cites the example of ‘mind blowing’ results for a recent project in which he analysed the perception of the ‘Made in Italy’ slogan among US consumers.
“Practically no one linked it to elegance, refinement, or quality – but rather to pizza, pasta, and the movies. Nothing about fast and exceptional cars, made-to-measure tailoring, or any other quality marker.
“The term became an empty promise without any differentiation or substance. It became so generic that it did not evoke any emotion.”
He adds: “Likewise, German luxury car brands are losing relevance rapidly in China because ‘Made in Germany’ does not translate into a differentiating and relevant storytelling in a Gen Z-influenced world that lives in the now and wants to know what’s in it for them.”
Langer says it does not matter whether you are the head of state of a country worrying about its image, the CEO of a leading luxury brand, or someone working on a luxury startup. Do you have a true story and clarity about which emotions you evoke in your clients, and does the customer journey transport the story?
“If you can look in the mirror and say ‘yes’ with certainty, congratulations! But if there could be even the slightest inconsistency in the above, then you must act. Because luxury is all about delivering on a promise of an emotion; it’s about the client and not the brand. Otherwise, you will be one of the 50 percent of brands that disappear.”
Read the full article here.
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