Luxury Unfiltered: Hermès and Patek Philippe prove trust is the true luxury

November 20, 2024

Daniel Langer is the founder and CEO of consulting firm Équité.

In the world of ultra-luxury, trust is the cornerstone of enduring client relationships.

While many brands obsess over innovation or exclusivity, few recognize that trust is what makes clients return, recommend and invest in their offerings. Hermès and Patek Philippe, two of the most trusted names in luxury, offer a masterclass in how to cultivate trust.

They show us that trust is built through timelessness, clear storytelling and an unwavering commitment to values.

Timelessness and the investment in trust
Trust is fragile, difficult to build and devastatingly easy to lose.

I just presented during a luxury masterclass for a luxury brand in Paris recent quantitative study results that Équité Research helped conducting which reveal that it takes about eight extraordinary experiences to build loyalty, while it takes less than two experiences “below expectations” to for luxury clients to lose trust.

Given how challenging it is to deliver truly extraordinary experiences where every detail delights, building trust – while critical – requires consistency, zero compromises and staff members that are highly trained in delivery excellence at every touchpoint.

For ultra-high-net-worth individuals (UHNWIs), trust often comes down to longevity. Clients seek brands that feel as permanent as their wealth – a reliable constant in an unpredictable world.

Patek Philippe embodies this philosophy with its tagline: “You never actually own a Patek Philippe. You merely look after it for the next generation.”

This is a promise that requires from the brand a long-term commitment to excellence. It makes a Patek Philippe watch a symbol of continuity and legacy.

The brand’s extraordinary craftsmanship, rooted in nearly two centuries of inspiring clients with the pinnacle of fine watchmaking, assures clients that their investment will stand the test of time.

Trust is reinforced when the value of that watch appreciates, offering both emotional and financial returns. This has become clear when Patek recently launched the new Cubitus watch, a modern take on the Nautilus.

Strong initial demand and instantly soaring resale prices for the first new Patek Philippe Model in years indicates that the allure of the brand transcends generations and is able to create instant classics that define eras, similar to the Golden Ellipse, the Calatrava, the Nautilus and the Aquanaut before.

Similarly, Hermès has mastered the art of timelessness, continuity, hand-crafted expertise and excellence in brand storytelling.

As a result, the Birkin bag not only became the most iconic handbag of all times, but it is an asset class. In a recent media interview, I elaborated extensively about the psychology of handbag purchases, and how no other bag has the same allure and signal strength than the Hermès Birkin.

With waiting lists stretching years and resale values typically exceeding retail prices, Hermès has built trust by positioning its products as more than accessories. They are investments that give clients both: the anticipation of a significant positive perception shift and a track-record of a solid investment.

The brand’s deliberate hand-crafted process and commitment to quality in every detail signal to clients that Hermès respects their investment and will uphold its value.

The power of storytelling: Consistency builds trust
Trust also stems from clarity of brand storytelling. Both Hermès and Patek Philippe have remained unwaveringly consistent in their brand stories, which is a key reason their clients trust them implicitly.

I often ask brands, what do they really sell, and for many it is a hard question to answer. Patek Philippe sells much more than watches.

It sells the idea of generational stewardship. This story resonates deeply with UHNWIs, who often prioritize legacy and continuity.

Every detail - from the materials used to the service experience - is aligned with this message. There is no confusion about what Patek Philippe stands for, which fosters deep emotional connections and unwavering loyalty.

When I wear one of my Pateks, it is opening the doors to an exclusive community of other owners. Some of my most interesting conversations started when I met someone else who wears one.

Hermès excels by elevating artisanship into art. Its storytelling revolves around exceptional craftsmanship, with every product symbolizing the dedication of skilled artisans.

The brand’s transparency, whether showcasing the hand-stitching of a saddle or the meticulous weaving of a scarf, instills trust. Clients know exactly what they’re buying and why it’s worth the price.

In the case of the Birkin, the story of the brand fuses with the unique story of the bag and its inspiration by Jane Birkin, creating an exceptional narrative that cannot be replicated by any other brand.

The fragility of trust: Hard to build, easy to lose
Building trust takes years of consistent excellence, yet in every masterclass I highlight that a single misstep can undo decades of progress.

Ultra-luxury clients are highly attuned to every interaction with a brand, and even minor lapses can feel like betrayals.

When Gucci recently changed its brand storytelling from bold and non-conformist to muted and conforming, it immediately translated into a negative spiral. While the intent may have been strategic, the backlash from clients and stakeholders who valued the brand positioning of freedom of self-expression was swift and severe.

The damage to Gucci’s trust has been significant, translating in an ever-accelerating decline quarter by quarter. When brands don’t value who they are and try to appeal to different audiences, trust can easily be broken.

Another pitfall is overextension. When a luxury brand tries to expand too quickly into mass-market offerings, it risks diluting its exclusivity and eroding client trust.

Maserati, for example, faced criticism when it introduced lower-cost models that clashed with its heritage as a producer of exclusive, high-performance cars. Loyal clients felt alienated, perceiving the brand as less authentic and special.

Especially poor customer service undermines trust, this is why sales and client service training is so incredibly critical. Inconsistent or transactional purchase and post-purchase experiences send the message that a brand values profit over loyalty.

Many luxury car dealerships, for instance, have faced criticism for lackluster service that doesn’t reflect the premium prices clients pay. For ultra-luxury consumers, every touchpoint matters and failure at any stage can permanently damage the relationship.

Trust is the ultimate differentiator
For UHNWIs, trust transforms a purchase into a relationship that I sometimes compare with a romantic relationship. They become emotionally invested and do not accept to second-guess their choices or wonder if their investment aligns with their values.

Hermès and Patek Philippe have mastered the art of trust by providing timeless products, clear brand stories, consistency while innovating and the assurance of value.

In a world where some brands dilute their equity with overextension or inconsistent messaging, these two stand apart. They remind us that trust isn’t built through gimmicks or shortcuts, it is earned through decades of unwavering commitment to clients’ high expectations and executional excellence in every detail, all the time.

The lesson for luxury brands is clear: trust more than a strategic advantage. Trust is a necessity.

It’s difficult to build but incredibly easy to lose. Trust is the ultimate luxury and the ultimate differentiator.

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

Mr. 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.

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