While attending the recent Luxury Summit in Venice, Italy, one conversation stood out to me: “The brand is more important than the product,” Ferretti Yachts CEO Alberto Galassi emphasized onstage. Regular readers of my column will know that I've been making this point for years.
However, when I regularly audit many luxury brands, I find that around 90% of them have a relatively generic positioning. In other words, the brand is undifferentiated in the eyes of the customer. This is often in stark contrast to their internal view of uniqueness.
What is the reason for the discrepancy? There is often a strong focus internally on the product. Many brands are happy if their products feel different in design, materials, and function.
For many luxury brands, the product itself is often perceived as the centerpiece and the reason customers come in and buy: an iconic handbag, a bespoke suit, a limited edition watch or even a yacht captures attention and stimulates desire.
But in today's competitive, social media-influenced market, it's not just the product that captivates consumers. The essence of luxury lies in the story behind the product – what the brand stands for and what it values.
Brand stories transform beautifully crafted objects into symbols of culture, identity and desire. This phenomenon is rooted in human psychology – people crave meaning, connection and a sense of belonging. Only when luxury brands present a compelling and authentic story does it create ultimate value.
Consider the success of brands like Hermes, Chanel, Louis Vuitton and Patek Philippe: their products are undoubtedly exquisite, made with the finest materials and meticulous attention to detail, but what really sets them apart are the stories that are unique to them, including the legends and myths that surround them.
The Hermes Birkin is the most iconic handbag in the world and is a part of fashion history due to its origins and connection to the iconic Jane Birkin.
Chanel No. 5 is more than just a perfume: it's a century-old olfactory masterpiece that evokes the story, personality and charm of Coco Chanel herself.
Chanel No.5 evokes the story of Coco Chanel herself. Image: Chanel
Louis Vuitton inspires extraordinary journeys through each and every one of its products, recently embodied in its iconic Core Values ​​campaign featuring Roger Federer and Rafael Nadal, and which will culminate in 2026 with the opening of the first Louis Vuitton hotel in Paris.
Louis Vuitton plans to open its first hotel in Paris in 2026. Image: Louis Vuitton on X
A Patek Philippe watch, on the other hand, represents the idea of ​​not actually owning a Patek Philippe, but simply caring for it for generations to come. This story of tradition and enduring value elevates the watch from a functional accessory to a treasured part of your own legacy.
These examples show that brand storytelling is much more than advertising or marketing campaigns. When done right, a marketing campaign expresses your brand story, but it is never the story itself. This is where many brands struggle to communicate their brand values: often their core values ​​are too poorly defined, too interchangeable, or too product-focused.
A marketing campaign expresses your brand story, but it is never the story itself.
Instead, brands need to think more precisely about the role they play in their customers' lives and the emotions they want to evoke, and then build their brand story around those elements.
Luxury brands without a differentiating, customer-centric story risk becoming a commoditizer. In an era when customers have more choices than ever before, your brand story is a key differentiator and creates extremely high perceived value. It is your brand story that creates an emotional connection, fosters brand loyalty, and above all, justifies a premium price.
The role of the product is also important. Don’t get me wrong, the product is a representation of the story, but it is never the story itself.
A product is a representation of a story, but it is never the story itself.
The counterargument I often get is that quality and craftsmanship are important. I agree. But with luxury, those are givens. No one is going to buy luxury, regardless of the brand, if the quality and craftsmanship aren't great. Those are givens. But they're not the differentiators that create value, they're the story.
Moreover, the social media era has dramatically increased the importance of storytelling in luxury. Social media platforms such as Instagram and WeChat have become essential tools for brands to share their stories, engage with consumers and foster a sense of community. These platforms allow brands to showcase the inspiration and passion behind their work.
Luxury customers, especially millennials and Gen Z, are looking for authenticity and transparency: they want to know the origins of the items they buy, the artisans who made them, and the values ​​the brand represents.
One of the most dramatic changes in the luxury industry over the past 3-5 years has been the shift to the reality that the ability to create cultural capital is becoming the most important success factor. At its core is brand story. When we analyze the performance of the most successful brands, one thing they all have in common is the ability to tell a differentiated brand story. In contrast, many of the brands that are declining have a category story that is too focused on the product.
At the Luxury Summit, Prada CEO Andrea Guerra made a key comment about the importance of a long-term perspective in luxury: A brand story should not be a reaction to trends or an attempt to please a crowd, but rather an expression of long-term core values ​​that inspire and enchant customers.
For many brands today, a renewed focus on brand storytelling has never been more urgent. They need to realize that while their products may grab attention, it's their stories that capture hearts and minds. Brands that master the art of storytelling will not only survive, but thrive, transcending the materiality of their products to create lasting emotional connections with their audiences.
This is an opinion piece by Daniel Langer, CEO of Ekité, who is recognized as one of the “Top 5 Key Opinion Leaders in the Global Luxury Industry to Watch”. He is Executive Professor of Luxury Strategy and Pricing at Pepperdine University in Malibu and Professor of Luxury at New York University in New York. Daniel has written bestselling books on luxury management in both English and Chinese and is a globally respected keynote speaker.
Daniel holds masterclasses on a variety of luxury-related topics around the world. As a luxury expert who has been featured on Bloomberg TV, Forbes, The Economist and more, Daniel holds an MBA and PhD in Luxury Management and was educated at Harvard Business School. Apply for his masterclasses on Jing Academy. You can follow him on LinkedIn and Instagram.
All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.
