Luxury Unfiltered: Why feelings trump features in the new era of brand excellence

December 4, 2024

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

In the world of luxury, a seismic shift is underway.

Brands are facing rapidly changing consumer expectations and a rapidly transforming global landscape. One critical factor is becoming increasingly important: the power of emotion in shaping the luxury experience.

But what exactly is the role of emotions and perceptions in constructing luxury, and how can brands harness this knowledge to create unparalleled value?

At its core, luxury is not about products or services, it’s about emotions. The products and services mean nothing, if no emotional response is created. Of course, amazing products and services are critical. And as Steve Jobs was confirming in many of his presentations, it’s hard to make great products. But even the greatest products will not generate significant perceived value, if clients don’t feel emotions. The perception of extreme value and extreme (positive) emotions are closely interconnected.

The anticipation of positive emotional experiences is what drives clients to invest in luxury, often paying significant premiums. This emotional foundation of luxury taps into deep-seated psychological needs that I was able to unlock through years of quantitative research: the desire for attractiveness, the quest for inspiration, the attribution of expertise, and the pursuit of enhanced self-esteem, among many others. When a luxury brand successfully addresses these needs, it creates a powerful, multidimensional perception shift in its clients.

Picture the last time you interacted with a truly exceptional luxury brand. Perhaps it was the moment you stepped into a meticulously designed boutique, or when you unboxed a beautifully crafted item. The surge of positive emotions, excitement, joy, pride, wasn’t just about the physical product. It was about how that experience made you feel about yourself and your place in the world. This is the essence of luxury’s emotional alchemy.

Creating emotional resonance is hard, especially when brands cater to ultra-luxury clients who are exposed to many experiences ongoingly since each exceptional experience sets a new benchmark. In every luxury masterclass I lead, participants confirm how hard unlocking emotions is. And it’s even harder to exceed the expectations of the most discerning clients again and again. In a recent meeting one participant asked, “is there any end to delivering more and more to clients?” My answer was, “no.” Luxury requires permanent reinvention, and the perpetual management of surprise.

It also requires a deep understanding of the client’s psyche and a masterful ability to craft and communicate compelling brand stories. The brand story must go beyond product features, it rather needs to create value for the client. It’s less about “us” and more about “them.” The best brand stories tap into a deep customer insight and provide transformative inspirations - enhancing the client’s self-perception and worldview.

The most successful luxury brands understand that their true product isn’t a handbag, a watch, or a car. It’s the emotion, the story, the promise of transformation. Hence, in every brand story I create for clients, I always focus on the transformational aspect and the ability to inspire through the story.

Stories, if done well, create anticipation and experiences that spark deep emotional connections, offering not just exclusivity but also a sense of belonging to a discerning community. This paradoxical blend of exclusivity and inclusion is a foundation of luxury’s emotional appeal.

In today’s market, where consumers are increasingly value-conscious and socially aware, the ability to create authentic emotional connections is more critical than ever. Gen Z and Millennial luxury consumers, in particular, seek brands that align with their values and offer meaningful experiences. They are investing in stories, in emotions, in versions of themselves they aspire to become.

This shift demands an entirely new approach from luxury brands. It’s no longer enough to rely on heritage, craftsmanship, or even quality alone. Brands must become masters of emotional engagement, creating multi-dimensional and multi-sensory experiences that resonate on a deeply personal level with each client. This requires a holistic approach, where every touchpoint, from digital platforms to in-store experiences, is designed to evoke specific, positive emotions.

Moreover, brands must recognize that the anticipation of luxury often carries more emotional weight than the actual possession of luxury items. This insight opens new opportunities for creating desire and building long-term relationships with clients. By focusing on the journey, the anticipation, the discovery, the reveal, brands can create sustained emotional engagement that goes far beyond the point of purchase. The implications of this emotional-centric approach are profound. It requires a fundamental shift in how luxury brands conceptualize their offerings, train their teams, and measure their success. Traditional metrics like sales and market share, while still important, must be complemented by measures of emotional impact and client perception shifts.

For luxury executives and brand managers, the call to action is clear: it’s time to put emotions at the center of your strategy. This means investing auditing your brand, analyzing deep client insights, reimagining your brand story authentically, and training your teams to become emotional alchemists capable of creating transformative experiences.

Start by auditing your current brand story and touchpoints. Are they designed to evoke specific emotions? Do they tell a cohesive, emotionally resonant narrative? Are your teams equipped to understand and respond to clients’ emotional needs? When we audit brands across categories, more than 90% have significant gaps. So, it’s safe to assume that your brand may also have gaps that, when addressed, can catapult the brand to new heights.

Next, focus on creating experiences that are exceptional from a client perspective – that’s the only thing that matters. How can you surprise and delight your clients at every interaction? How can you make them feel not just valued, but truly understood and inspired?

Finally, consider how you can leverage technology to enhance, rather than replace, emotional connections. From personalized digital experiences to AI-powered insights that help your teams better understand client emotions, technology can be a powerful tool in your emotional engagement arsenal.

The future of luxury belongs to those brands that can master the art and science of emotional engagement. By understanding the crucial role of emotions and perceptions in luxury, and by strategically applying this knowledge, brands can create extreme value and lasting relationships with their clients.

In a world where products can be easily replicated, it’s the emotions that remain unique. The question is: Are you ready to become an emotional alchemist?

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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