Luxury Unfiltered: Crisis or opportunity? Why luxury brands must focus on strategy, not fear

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Luxury Unfiltered: Crisis or opportunity? Why luxury brands must focus on strategy, not fear
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Luxury Unfiltered is a weekly column by Daniel Langer, an expert in luxury branding, hospitality and activations who was named a “Global Top 5 Luxury Key Opinion Leader” by Netbase Quid.

The Chinese word for crisis is 危机 or wēijī, which is composed of two characters: 危 - meaning"danger" or"precarious" and 机 – meaning a"crucial point" or"critical moment," sometimes also interpreted as turning point or, even if not hundred percent linguistically correct, as opportunity. Danger and opportunity are always close when there is a crisis.

In contrast, many brands in steep decline are pointing to the outside while neglecting the soul searching on the inside. As Diane von Furstenberg expressed in 2020, when her namesake brand was at a near-collapse during 2020, brands with pre-existing conditions fail when markets get tougher. Now is the moment for luxury brands to pause, refocus, and recalibrate.

Luxury staff and sales training, therefore, is critical. Luxury brands must invest in intensive, transformational and client-centric training programs that go beyond product knowledge and into the psychology of ultra-luxury client expectations. I have never led a training where participants would not say “this was eye-opening.

Moreover, a stronger brand equity also involves setting the foundation for trust. It’s about creating long-term brand desirability by developing relationships that are so deeply rooted in the client’s identity that even economic downturns cannot shake them. The top brands understand that they are curators of an emotional experience, not just purveyors of luxury goods. Every decision a brand makes must reflect this ethos, from product development to client engagement.

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