Luxury Unfiltered: Debunking the myths of luxury brand storytelling

February 19, 2025

Daniel Langer is the founder and CEO of consulting firm Équité

For luxury brands in a hyper-competitive reality, storytelling is much more than just a marketing tool and “nice to have,” as I hear all the time.

It is, fundamentally, the essence of a brand’s value. Yet, despite its critical importance, misconceptions about brand storytelling abound, leading many brands to miss out on its transformative potential.

These myths not only hinder growth but also dilute the emotional connection that distinguishes great and successful brands from mediocre and underperforming ones.

The story comes first
The most common misconception is that the brand name or product itself is the primary value source. This belief leads brands to focus disproportionately on brand awareness and product features while neglecting the story that gives a brand and its products meaning.

Équité Research estimates that over 95 percent of perceived value in luxury stems from storytelling. Over the years, I have done countless studies in my academic research that confirm this number.

What is critical: the product is merely an expression of a story. It is never the story itself.

Without a compelling narrative, even the finest object risks becoming a commodity. Hermès’ Birkin bag isn’t iconic solely because of its craftsmanship.

As I shared in a recent interview with The Wall Street Journal, it became an it-bag and, for many people,e even the most iconic bag because of its legacy being created for Jane Birkin after an encounter between her and the CEO of Hermès during a flight which should change the world of handbags forever; the story created the cultural capital that elevated it to legendary status.

Outsource with caution
Another common myth equates storytelling with advertising campaigns.

This misconception relegates storytelling to a tactical exercise, often outsourced to PR or advertising agencies and confined to short-term initiatives, but storytelling is foundational.

It codifies a brand’s core values and purpose, serving as the DNA from which all campaigns and all brand experiences should emerge. A campaign might amplify a story, but it can never replace it.

Brands like Chanel or Louis Vuitton succeed because their campaigns are consistent expressions of deeply ingrained narratives that resonate across generations.

A third fallacy views storytelling as an expense rather than an investment. Many brands underestimate its financial impact, treating it as an intangible asset with no measurable return.

However, our research shows that the most financially successful brands are also the most effective storytellers.

Storytelling creates emotional bonds that drive loyalty, justify premium pricing and generate cultural capital, all of which translate into long-term profitability. Brands that fail to invest in storytelling will be outpaced by competitors who understand its power.

Luxury's long-term vision
Perhaps the most overlooked misconception is the belief that storytelling stops at marketing.

In reality, a brand’s story must permeate every aspect of its organization, from product design to customer service. A disconnect between a brand’s narrative and its execution can erode trust and alienate clients.

Through masterclasses and mystery shopping experiences, I have observed countless instances where sales staff are unable to articulate their brand’s story effectively. This failure not only undermines client relationships but also diminishes perceived value.

One additional pitfall worth addressing is the tendency to prioritize trend-driven narratives over timeless, authentic ones. In an era dominated by social media and fleeting attention spans, many brands succumb to chasing virality or pandering to audience preferences.

Great storytelling is never reactionary. It is rooted in enduring values that inspire across time and cultures.

Andrea Guerra, Prada’s CEO, aptly noted that luxury requires a long-term vision. Stories must reflect this philosophy to sustain desirability.

The urgency for brands to master storytelling cannot be overstated. In today’s hyper-connected world, where millennials and Gen Z demand authenticity and transparency, storytelling has become the ultimate differentiator.

It transforms products into symbols of identity and culture, fostering emotional connections that transcend materiality. To be successful in this new reality, brands must shift their mindset, recognize that their value lies not in what they make but in what they stand for and invest in crafting stories that are authentic, client-centric and emotionally resonant.

Importantly, brands need to ensure that these stories are lived out at every touchpoint, which is where many brand experiences break down or become similar to everyone else. Now is the time for brands to ask themselves: what story do we want to tell?

More importantly, are we ready to live it? Don’t fall behind those who master it.

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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Luxury Unfiltered: Debunking the myths of luxury brand storytelling

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