Luxury Unfiltered: How high-end brands lose their spark – and how they can get it back

March 19, 2025

Daniel Langer is the founder and CEO of consulting firm Équité

The luxury industry stands at a critical juncture.

While some brands are growing rapidly and expanding successfully, others are facing unprecedented declines, often driven by an identity crisis that threatens their very foundation. Once the epitome of aspiration and exclusivity, many luxury brands now find themselves adrift in a “sea of sameness,” struggling to differentiate and inspire in a rapidly evolving market.

This crisis is rooted in a fundamental disconnect between many brands and their clients.

Reigniting the spark: The power of storytelling and innovation
In a recent Future of Luxury podcast episode, one of my guests, the top influencer Thomas Derksen, said: “In my opinion, it's the same problem with politicians or luxury brands that the people or the customer or the voters, they have the feeling that we don't speak the same language anymore.”

“It's a big challenge for them. What interests me the most, the number one thing, is social media. Social media has become so important that no brand, no person, no celebrity or no private person can't ignore it anymore. But sometimes I have the feelings that a lot of brands, a lot of boards, members of boards, they don't understand social media.”

Today’s consumers, particularly the influential Gen Z demographic, expect more than just products. They crave inspiration, meaning, and authentic experiences.

Yet, many luxury brands have failed to meet these heightened expectations, relying on outdated strategies and generic marketing approaches that no longer resonate. The consequences of this disconnect are stark.

According to recent global studies, nearly half of luxury consumers now believe that luxury goods are overpriced and uninspiring. This trust deficit is reflected in an all-time high number of luxury clients, indicating that prices are too high, signaling a critical misalignment between perceived value and cost.

To navigate this crisis and reclaim their relevance, luxury brands must fundamentally rethink their approach. Storytelling emerges as one of the most critical tools at their disposal.

A compelling brand story can unleash meaning and emotion. It’s about crafting authentic and relevant stories that resonate with modern clients.

The problem with most brand stories: They are – directionally – the same as their competitors. In the sea of sameness, all brands sink. Innovation must extend beyond product development to encompass how brands engage with clients across digital platforms.

Social media is no longer just an optional promotional tool but a stage for connection, inspiration and creativity. Brands like Louis Vuitton have successfully leveraged platforms such as Instagram and TikTok to bring consumers into the world of their ateliers, showcasing craftsmanship through mini-documentaries and immersive content.

The critical role of transformative training
In this landscape of dramatic change, transformative training emerges as an absolutely crucial, yet often underutilized, tool for luxury brands. Traditional training methods focusing on basic sales techniques are no longer sufficient.

Today’s luxury clients expect an intangible aura of prestige, a seamless fusion of personalized engagement, and the emotional pull of a compelling brand story. In my luxury masterclasses, I witness the need for training practically every week all around the world.

Even very senior marketing and salespeople regularly tell me after training sessions that the insights about the psychology of high-net-worth buyers is critical for their success and how counter-intuitive it is to common beliefs. This is where traditional trainings often fall short.

Transformative training needs to go beyond teaching mechanics. When done right, it instills meaning and empowers staff to become true brand ambassadors.

It’s about equipping teams with the deep understanding and skills necessary to deliver exceptional, personalized experiences at every touchpoint. As I noted in a recent luxury training session, “You don’t want to be the ones who, in the eyes of clients, waste their time.”

The rise of experiential luxury reflects a broader trend of consumers prioritizing unique experiences over material goods, especially among younger demographics. This shift demands that brands create meaningful interactions that go beyond traditional retail transactions.

Technology plays a pivotal role in this evolution. Virtual try-ons, immersive product displays that support precise storytelling in the context of each product and interactive brand experiences become non-negotiable.

In a reality where I find many luxury brand experiences underwhelming at best, these innovations, when done right, enhance the customer journey significantly.

The path forward: authenticity and client-centricity
To regain their spark, luxury brands must refocus on building authentic, compelling brand stories that resonate with their target audience. This requires a deep understanding of client expectations and values, coupled with the ability to communicate these effectively across all touchpoints.

My 4E luxury framework – Emotion, Experience, Engagement and Exclusivity – offers a strategic roadmap for creating extreme value in luxury. By placing the client at the center of everything, brands can inspire deep emotional connections and deliver the extraordinary experiences that today’s luxury consumers demand.

The identity crisis many luxury brands find themselves in presents both a challenge and an opportunity for reinvention. Brands that can successfully blend compelling storytelling, innovative engagement strategies and transformative training will be best positioned to reignite their spark and lead in this new era of luxury.

The future belongs to those who can create meaning, inspire desire and deliver exceptional experiences in an increasingly complex and fast-changing landscape.

Luxury Unfiltered is a weekly column by Daniel Langer. He is the CEO of Équité, a global luxury strategy and creative brand activation firm, where he is the advisor to some of the most iconic luxury brands. He is recognized as a global top-five luxury key opinion leader. He serves as the executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at New York University, New York. Dr. Langer has authored best-selling books on luxury management in English and Chinese and is a respected global keynote speaker.

Dr. Langer conducts masterclass management training on various luxury topics around the world. As a luxury expert featured on Bloomberg TV, Financial Times, The New York Times, Forbes, The Economist and others, Mr. Langer holds an MBA and a Ph.D. in luxury management and has received education from Harvard Business School. Follow him on LinkedIn and Instagram, and listen to his Future of Luxury Podcast.

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