A Time to Rediscover the Essence of Luxury
#Luxury Business Group #Insight
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Beyond Numbers: Rediscovering the Essence of Luxury Brands
Values that leaders and employees should not forget to survive in the luxury market |
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Marketing & Communication Team |
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"A Time to Rediscover the Essence of Luxury" |
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During our 15 years of luxury brand consulting, one question has been asked more than any other:
"How can we increase sales?"
However, we've been missing the most crucial question.
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๐คThe Trap We've Fallen Into
Luxury brands in local markets have fallen into a subtle trap. The brand value that headquarters has carefully built over decades becomes reduced to mere 'sales targets' the moment it enters the local market.
"This is our bestseller this season."
"We're running an end-of-year limited promotion."
These are the most commonly heard phrases in luxury brand stores worldwide. But is this truly the language of luxury? Where has the true value of luxury brands - built on centuries of craftsmanship and heritage - disappeared to? We're gradually losing sight of the brand's essence, hidden behind sales figures. This phenomenon is particularly pronounced in local markets.
It's like treating a meticulously crafted porcelain piece as merely an expensive vessel, or viewing a centuries-old luxury timepiece as just a tool for telling time. We've become so focused on 'what to sell' that we've forgotten 'why we're selling it.' |
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๐คBranding vs. Marketing: The Critical Difference
One of the most common confusions in the luxury industry is the difference between branding and marketing. Understanding this distinction is the starting point of luxury business.
What Marketing Does:
- Drive sales of new seasonal products
- Measure short-term promotional effects
- Generate immediate customer response
- Analyze ROI-focused performance
What Branding Creates:
- Build emotional bonds between brand and customer
- Develop brand trust that strengthens over time
- Natural justification for premium pricing
- Brand heritage that spans generations
While marketing is about "increasing sales of this season's bestsellers,"
branding is about "why customers choose our brand."
Why do people still seek Hermรจs and Chanel bags despite price increases every season? It's not simply about scarcity. It's about the cultural value, craftsmanship, and trust built over time. |
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๐กThree Challenges Faced by Local Markets
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The Conflict Between Short-term Performance Pressure and Brand Value
Local subsidiaries face this wall first. Quarterly performance reports, annual target achievements... brand value naturally takes a back seat under the pressure of these numbers. While headquarters emphasizes long-term brand value, local offices face immediate pressure to meet sales targets. Brand core values often become diluted in this conflict.
Performance pressure is unavoidable reality. However, if we damage brand value in achieving it, it's like eating all of today's seeds for tomorrow's meal.
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The Paradox of 'Selling Too Well'
Ironically, another challenge luxury brands face in local markets is 'selling too well.' As sales surge, products become common, and brand scarcity diminishes. A brand's signature bag might have a waitlist in its first year, but after increasing supply to meet demand, it becomes too commonly seen on the streets a year later. This is a case of losing 'scarcity' - one of the most important values a luxury brand should maintain.
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Employee Brand Understanding Gap
People are the most valuable asset in luxury brands. Each department has its own important objectives. The marketing team strives to balance brand heritage with modern sensibility, while the sales team must provide optimal customer service while meeting performance targets. The moment of direct customer interaction is particularly crucial. Naturally conveying the brand's long history, craftsmanship, and cultural value goes beyond simple product explanation. This requires systematic education and support. The true competitiveness of luxury brands lies not in the products themselves, but in the stories and values they contain. What we need is to create an organizational culture and support system where such value delivery can occur naturally.
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๐Change is Possible: The Journey to Reclaim Brand Essence
Reclaiming brand essence isn't as difficult as it might seem. It just requires time and a systematic approach. This journey should begin in three directions:
First, organizational culture must be reestablished with a brand focus. Starting with an honest assessment of whether all members, from CEO to store staff, understand the brand's true value. Implement company-wide brand education programs and maintain continuous communication with global headquarters to deeply understand brand authenticity.
Second, performance evaluation perspectives must shift to long-term. While quarterly sales targets are important, protecting brand value is more crucial. New evaluation systems measuring qualitative growth like customer satisfaction, brand loyalty, and value delivery effectiveness should be introduced. This represents not just a change in metrics, but a transformation in how we view the brand.
Finally, consistent brand experiences must be provided at all customer touchpoints. From store experiences to digital channels and after-service - every moment of customer interaction should be an opportunity to convey the brand story. This requires strengthening online-offline experience connectivity and ensuring message consistency across all touchpoints.
Such changes can't happen overnight. But the moment we take the first step, our journey to reclaim brand essence begins.
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๐ฉThe Path We Must Choose
A luxury brand's success is like a marathon. Obsessing over short-term performance will ultimately lead to losing brand essence. To become a true luxury brand, all organization members must understand and practice the brand's values and philosophy.
Leadership's role is particularly crucial. C-level executives must deeply understand brand value and disseminate it throughout the organization. Remember that brand value is just as important as quarterly performance reports.
At this moment, we must ask ourselves: "Are we truly delivering the value of a genuine luxury brand?" If we can't confidently answer "yes," now is the time to begin change.
If you're considering branding strategies through luxury brand employee education, the Luxury Business Group can help find answers together. Contact us now if you want to maximize brand value and achieve sustainable growth.
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Luxury Business Group (LBG) |
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๐Brand Store Operations
- Are you planning to open a new flagship store?
- Are you facing challenges in hiring and managing talent in the service sector?
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- Do you need an on-site service quality assessment and solutions?
๐Planning and Branding
- Are you planning collaborations with various brands (art, luxury, retail, etc.)?
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- Are you considering expanding your services to other regions (Europe and Asia)?
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๐Corporate Training and Recruitment
- Are you looking for a training program that is more distinctive than traditional corporate programs? (Luxury attitude, new normal selling skills, storytelling, employee/brand branding, etc.)
- Do you need a training program customized to your brand?
- Do you need to recruit top-tier talent that aligns with your company or brand?
Luxury Business Group (LBG) supports numerous companies in the luxury service and retail sectors across Europe and Asia, leveraging its unparalleled expertise in providing total solutions for service and retail training and consulting.
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Luxury Business Group (LBG)
LBG Marketing & Communication Team | Gayoung Lee, Jade Lee, Booki Jung |
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