Opinion / How can a luxury brand be authentic and relevant for millennials?

This opinion piece was originally written by Daniel Langer for Jing Daily

The CEO of a luxury brand recently asked me if I agreed that for millennials, especially in China and Asia, luxury is all about experiences, suggesting that brand, quality and craftsmanship are not nearly as important? That in today’s digital – everything all of the time – world, it’s all about connection?

While I agreed about the need for immersive consumer experiences, I vehemently disagreed about the importance of the brand. I couldn’t help but think that managing the equity of a brand has never been as important as it is now. This means creating a proposition that resonates with consumers and inspires them. In short, if a luxury brand wants to entice consumers, whether it is in China or beyond, it needs to underscore its authenticity and relevancy.

Powerful words, to be sure, but what does it mean to be authentic and relevant? Let’s start with the opposite. During many of my brand strategy sessions, I often hear the expression “they feel staged” when people describe brands that they would never buy. Needless to say, when a brand feels staged, it is neither authentic nor relevant. The synonyms unnatural, deceived, cheated and faked come to mind. In other words, a staged brand is bullshitt*ng its consumers.

This may sound harsh, but in my experience, this is what consumers perceive if a brand is not authentic. It feels like something is off, even if people can’t tell what it is. And when they feel it, the brand loses relevancy and consumers walk away. Managers of brands typically have the best intentions, but if their proposition is off, if they use the wrong tools, then the brand will feel staged, lacking substance and meaning. For luxury brands, this perception has three consequences: consumers will not pay premium prices; they will turn away; and they will tell their friends. Social media is a locus of people sharing their experiences, and if they are negative, they will spread even faster.

So what is the cause of this problem? And why do brands, even some of the most established and successful ones, continue to make these mistakes? First of all, managing luxury brands is difficult. When executed well, they can deliver an exponential amount of intangible value, which explains why consumers pay such high prices. But when mistakes are made, the intangible value collapses, which can often be irreversible.

In my experience, it is a lack of authenticity and relevancy that starts at the core of the brand; it is the lack of a comprehensive brand definition that combines a rational reason to be and an emotional anchor for the customer. While brands often think that their definition is clear, in reality, it is often blurry or vague. Many are too similar to what other brands in the same field are claiming or doing. This similarity may feel safe for some managers (“because others do the same, there must be a reason, and we should be fine”), but feels staged for consumers (“the brand does what everyone else is doing”).