Luxury Unfiltered: How empathy can save the luxury industry

November 27, 2024

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

The luxury industry, long revered for its exclusivity, craftsmanship and heritage, is at a crossroads.

Bain predicts for the first time a decline in luxury purchases in a year that is not a crisis year. Even more concerning, the net promoter score of luxury clients is cratering, indicating plain blank that luxury brands are not creating the value clients expect.

It is a crisis of complacency, a crisis of its own making.

Why change is non-negotiable
Many luxury brands are still underestimating the rapid shift of Generation Z, and many organizations underestimate how drastic the gap between the reality of experience delivery and client expectation is.

While client expectations shift rapidly, the market is increasingly saturated with mediocrity. More of the same won’t cut it.

This realization is what inspired me to launch The Future of Luxury with Dr. Daniel Langer podcast, a new platform where I explore the profound shifts redefining luxury through conversations with some of the most brilliant minds in the industry.

The idea for the podcast was born from my teaching. At the business schools where I lecture on luxury strategy, pricing and disruption, I regularly invite guest speakers, all visionaries who are shaping the future of luxury.

Without exception, every guest has taught me something new. It could be a fresh perspective, an innovative approach or simply a reminder to view challenges through a different lens.

These moments of learning, collaboration, and reflection are a gift, and I wanted to share that wisdom with a wider audience. In the podcast’s inaugural episode, I had the privilege of hosting Luc Rochereau, the general director of Marco Valente High Jewelry.

Our conversation reinforced a belief I’ve held for years: the luxury industry is underperforming in its core mission of delivering extraordinary experiences.

Too often, luxury brands offer what I call “luxury in ambition only.” Too many brands offer products and interactions that aspire to be extraordinary but ultimately fall short.

Many times, organizations are not even aware that what they produce is basic at best. This is a critical failure at a time when creating emotional connections with clients is the ultimate differentiator.

One of the most striking lessons from my conversation with Luc was how many luxury brands remain trapped in the “sea of sameness.” Despite their efforts to stand out, their offerings lack the emotional resonance needed to truly captivate their audiences.

The issue isn’t the quality of their products as many brands produce exquisite pieces with significant craftsmanship. The problem lies in how these products are presented and experienced.

Too many luxury experiences feel transactional, uninspired, and forgettable. They focus on the tangible, like technical specifications, heritage, or craftsmanship, while neglecting the intangible emotional drivers that create desire, loyalty, and advocacy.

Brands must embrace change, challenge conventions and disrupt the status quo if they are to create experiences that are truly remarkable and memorable.

The power of emotional connection
As Luc and I discussed, the most successful luxury brands unleash emotions. Every luxury purchase is ultimately about how it makes the client feel.

My research over the past decade has uncovered the true psychological drivers behind luxury purchases, and it’s all about personal emotional desires. Unlocking this emotional connection requires empathy, creativity and emotional intelligence, skills that are completely absent in many luxury sales teams today.

In our conversation, Luc shared examples of brands and client-focused staff that get this right. These memorable interactions don’t rely on a script.

Rather, they reflect a tailored approach to every interaction with the individual client. They connect the brand story to the client’s personal narrative, creating a sense of meaning and exclusivity that goes far beyond the product itself.

This approach is essential for building long-term loyalty in a competitive and rapidly evolving market.

The industry’s knowledge gap
Despite the clear importance of emotional intelligence and creativity, these qualities are rarely prioritized in luxury training programs.

Instead, traditional sales training focuses on product knowledge, features and transactional tactics. This gap leaves sales teams ill-equipped to deliver the extraordinary experiences that today’s clients expect.

Through my masterclasses and consulting work, I’ve seen firsthand how this lack of preparation costs brands millions in lost revenue and erodes loyalty. More than 90 percent of mystery shopping exercises we conduct for clients reveal underwhelming experiences that fail to inspire or delight.

For an industry that prides itself on excellence, this is unacceptable.

Call to action
The luxury industry must do better. More of the same is not an option.

Brands and managers need to embrace change and commit to creating experiences that are genuinely extraordinary. This starts with investing in training programs that prioritize empathy, creativity and emotional intelligence.

It requires a shift from focusing solely on the product to centering every interaction on the client. For readers of this column, I urge you not to be satisfied with the status quo.

Challenge conventions. Be the change.

Whether you are a luxury professional or a brand leader, ask yourself: How can you create something remarkable and memorable? How can you disrupt the ordinary and inspire the extraordinary?

Wisdom as a gift
As I reflect on my conversation with Luc, I’m reminded of the incredible wisdom that exists within the luxury industry. Every guest on my podcast represents a unique perspective, a new insight or a fresh approach that will inspire us to aim higher.

These lessons are a gift, one that I’m excited to share through The Future of Luxury podcast and my in-person masterclasses. In a world where luxury is increasingly defined by the intangible, the ability to connect emotionally with clients is no longer optional; it is the future of luxury.

The brands that rise to this challenge will lead the change. Are you ready to be part of that future?

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.

Share your thoughts. Click here

Luxury Unfiltered: How empathy can save the luxury industry

Follow @LuxuryDaily for the latest in luxury news

Happy Thanksgiving!

Luxury Unfiltered: How empathy can save the luxury industry

L’École School of Jewelry Arts organizes ‘Paris, City of Pearls’ exhibition

New study from Cunard points to cognitive benefits of slow travel

Frette launches product collaboration with Portrait Milano

Saks reveals festive window displays

‘Toast of the Town’ titles holiday initiative from Bergdorf Goodman

SCOPE Art Show 2024 presents dynamic programming with focus on connections

De Beers spotlights milestones in holiday marketing