What’s Wrong with Luxury Fashion and How to Fix It

The most comprehensive essay on today’s issues in the luxury fashion world and a deep-dive into actionable insights that will help you solve them while creating a new momentum in the industry.



In a hurry? Sign up here to receive this article directly in your inbox.

What’s the sound of an industry finding itself in a moment of reckoning? Is it the tired taps to scroll down many worrying reports? Is it the harsh words coming from online comments? Or the corridor chatter after every new decision that could make or break the market?

As someone who works in luxury fashion, you might be experiencing all this and even more right now.

For years, luxury fashion stood as a symbol of exclusivity, craftsmanship, and aspiration. Yet, recent consumer sentiment reveals a stark divide. Prices are rising, quality is perceived to be falling, and once-iconic brands are losing their identity amid a flood of mass marketing and rapid trend cycles.  

As qualitative researchers with extensive partnerships in the fashion industry, we find this moment particularly harsh, but we can’t say it came as a surprise. Through ethnographic and netnographic studies, in-depth interviews with Cultural Opinion Leaders, and an extensive analysis of the online luxury consumer communities’ principles, norms, motivations, actions, mindsets, convictions, perspectives, communication styles, and visual identities, we recently delved into the heart of this shift and pieced together a complex picture. One where the industry’s strengths and vulnerabilities are inextricably intertwined, a heap of potential red flags but also of hope for and from the people who make luxury fashion itself.

We took this experience as a needed chance to reflect on what is currently going wrong in the fashion world. That is how this essay was born, to allow you and us to learn:

  • Why luxury brands are struggling to maintain their lustre

  • What are the key pain points of luxury fashion, starting from what is causing a loss of exclusivity and the alienation of both loyal and aspirational customers, moving towards the loss of magic in-store experiences, overexposure through influencer marketing, inconsistent brand identity, and excessive trend-chasing

  • What are the actionable strategies for luxury brands to restore trust and relevance, touching on the subjects of craftsmanship, quality, exclusivity, transparency, cultural ecosystems, immersive experiences, community, storytelling, personalisation, legacy, and more 

If you’re ready to dive into the industry's challenges and explore actionable solutions to help it thrive, read on. Or, if you’d rather skip the diagnostics, jump straight to the strategies that could restore luxury’s might.

One final recommendation before we start: be aware that this is the end of an era for luxury fashion. And it’s time to look ahead.

Index

Problems: From Product to Marketing and Experience
The Prices are Inexplicably High. For Everyone
Shifting from Craftsmanship to Mass Production
Declining Quality and Eroding Trust
The Conveyor-Belt Effect for Creative Directors
The Double-Edged Sword: Social Media's Influence on Luxury's Trajectory
The Impact of (Bad) Influencer Marketing
A Loss of Store Experience Magic
Solutions, Finally
Who Are Your New VICs?
And Who Are Your Potential New VICs?
Humans First is the New Lux
Prioritise Quality and Craftsmanship Over Mass Production
Embrace Transparency and Ethical Sourcing
Luxury Fashion as an Asset
Brands are Cultural Ecosystems
Connect with Customers Through Storytelling and Luxury Codes
Navigating the Influencer Landscape
Cultivate an Aura of Mystery
Create Meaningful Experiences to Restore Trust Into Luxury Fashion Codes
The Ultimate Omnichannel Luxury XP
And What about Tech?
Lifestyle Concierge Service
WOW Effect
The Journey is Before and After Purchase
XP: How do They Want to Feel?
Final Thoughts and Where to Start

Problems: From Product to Marketing and Experience

When you are looking for solutions, we strongly believe that it is best not to sugarcoat the issue. So here it is: customers feel betrayed by luxury fashion.
The reason? Prices are up and quality is down, or at least so it’s perceived to be.
The store experience is missing its magic (and its expensive champagne, apparently).
The brand image is diluted among hundreds of random influencers' ads.
The value for the money is not there anymore.

As much as these considerations might seem self-explanatory, we don’t just want to slap you in the face with them. In the following paragraphs, you will find more context, derived from our most recent observatory on luxury fashion consumers, in which we gathered and analysed quantitative and qualitative data on how consumers behave, their attitudes towards luxury fashion brands, and their needs and beliefs.
Contact us to learn more about our research in the last two years - we can share insights and knowledge from the fashion consumer world.

💰 The Prices are Inexplicably High. For Everyone.

As stated by one of the main decision-makers in luxury fashion, the price rise implemented in the field during the last few years has been “the ultimate failure” of the fashion world. If the statement hadn’t been trenchant enough, it was added that this “giant mistake” was made because “it was easy to do it”.

Whether you agree with the above or not, whether you feel like the price raise was not a choice but an obligation given the post-COVID macroeconomic state of affairs, the consequences on the consumer side are starting to become evident and dire.

First, we should look at the VICs, the Very Important Customers, those that every brand and company aims to seduce, nurture, and keep with them (and, possibly, with them only) forever. Their spending power, especially in the top tiers, hasn’t faltered after the pandemic, so that isn’t the reason why they are not buying as much as before.

The point is, the price rise in luxury items is one of the elements - and we’ll see more of them in the following paragraphs - that made them not worthy of investment. For the same price, they can get something else that is on their radar and boosts their status in a more exclusive way, like a less-massified luxury brand or an experience.

Secondly, the price rise has, simply said, outpriced everyone else. That’s quite an intuitive conclusion, but it should make us reflect on how large of a portion of the market luxury brands are losing every day.

No more lower-tier VICs. No more casual buyers. And, maybe most tragically, no more aspirational customers.

Is this the right time for brands to understand that, when they lose their ability to make people go “One day, I could have it too”, part of their magic dies?  

It's almost like raising all the prices exorbitantly and decreasing quality standards didn't seem to resonate with the consumers. So weird.” Instagram comment

The quality of items has decreased across the board at every brand, the customer experience is practically non-existent and the price increases are out of control. Greed is leading the way, and it isn’t chic at all.” Instagram comment

✂ Shifting from Craftsmanship to Mass Production

One of the defining traits of luxury fashion has always been its undisputable connection with craftsmanship and exclusivity. Yet, even these pillars have been crumbling down in front of the public eye.

The feeling that even luxury items are becoming mass-produced objects is stronger than ever, undermining the very essence of luxury itself.
Brands that once stood as synonyms of limited-edition pieces and long waiting lists are now, as one online commenter put it, "pumping out products at rates we have never seen before". Meaning: the constant flow of new collections, collaborations, limited releases, capsules & co. is more akin to fast fashion than exclusive couture, which blurs the line between luxury and mainstream items, and leads consumers to question the value proposition of luxury goods.

The luxury of time spent with an item has gone. Luxury houses need to slow down the pace of items released. It’s the same effect as iPhones. We can’t enjoy the one we just bought because another style is out while holding the one we just bought last week in our hand. It’s an expensive treadmill that makes the value of the items bought feel less special.” IG

Moreover, the proof of the craftsmanship of luxury items seems to be more evanescent than ever. Even the "Made in Italy" label, once a guarantee of superior artistry, is no longer a solid assurance. The damage done by recent viral news stories on the ease with which brands can set up factories in Italy, often using cheaper materials and labour, is concrete, and the doubt cast on the authenticity and exclusivity of products is pervasive.

Do not be naive and think that customers, especially VICs, are not aware that what they are paying for is the status that a brand brings with itself. Of course they know. But when the doubt starts creeping in that a brand expects them to be content with a label with no inherent quality, the trust is broken. Some may say that “the Emperor has no clothes”, with the Emperor being an industry that appears to have lost its wits.

Feels like they are taking the wrong lessons from this. It’s not that the products aren’t “inspirational” or “marvellous,” it’s that people are realising the glamour is a distraction, and at the end of the day, the products are not worthwhile. Prices of luxury goods have gone up (out of step with inflation, even) while production and material quality have gone noticeably down. That, plus all the revelations about just how much of a markup there is for brand names, and savvy shoppers find themselves better rewarded elsewhere - the secondhand market being one direction, but the youths are becoming more educated on how to identify well-made products regardless of label and prestige. This is a favorable trend IMHO and I’d be happy to see conscious consumption replace the conspicuous sort entirely. (Sure will miss Saks’ Christmas lights though!)

I think it's both. We pay for both the hedonic and rational properties of luxury. If you have quality materials and production but no sense of inspiration, world-building, beauty or vision, it's not luxury it's just premium.” One commenter responding to another on Instagram

😢 Declining Quality and Eroding Trust

Coming right at the tail of the previous point, the declining quality of luxury goods has become a significant concern. Reports of items falling apart, cost-cutting measures such as switching from solid gold to gold-plated hardware in accessories, and revelations like the aforementioned scandals, fuel disillusionment and lead to a decline in the perceived luxury of those that have always been the products of dreams.

If the physical quality of a luxury item falls short, it also means that its durability, another trait that is often deemed essential by consumers, is no longer there. This creates a two-faced problem: on the one hand, practical malfunctionings make the value for money not justifiable; on the other, people can no longer cater to the common imagery of luxury items being lifelong companions, heirlooms with the ability to increase present and future wealth, and even to be handed down one generation after the other and constitute true assets.
In short, and once again, they are no longer worth investing in.

With a sinister twist, the lack of quality assurance has led some to turn to replicas, as they feel the authentic versions no longer justify their price tags. If the luxury item will only allow them to be fashionable for one, maximum two seasons, and then will need to be replaced for lack of both evergreen style and durability, why bother with the original and not turn to the fakes?

This shift in consumer expectations ultimately exposes the gap between what luxury brands promise and what they deliver.

“Once upon a time, buying luxury, meant that you would have something for life and to pass through generations. Most brands missed the assignment and surrendered to social media hype. Now we are going to see who’s gonna survive.”
“This. The peek behind the curtain of shit quality and poor working conditions certainly didn’t help either!”
“Not to mention the quality of many luxury items today would not allow it to be passed down to the next generation…”
“The quality is my issue. Why are luxury items now lasting as long as Walmart products?”
The fashionista community on Instagram

🎨 The Conveyor-Belt Effect for Creative Directors

The conveyor belt of creative directors erodes and confuses customer trust. How can we fall in love with a brand if you keep switching out its heart?” Instagram comment

Creative directors play a huge part in making luxury fashion a cultural experience. They craft a unique world where every sign has its significance, where clothes and accessories convey philosophies, ideas and lifestyles.

The most successful can walk the thin line between respecting and exalting the brand’s heritage and bringing their own vision to life, all while attracting customers in a marvellous universe that is fuelled by both their charisma and the brand’s fame.
People fall in love with and learn to trust these realities, they crave to be a part of what provides them with values, styles, and, ultimately, meaning.

When these relationships get broken and brands seem to jump from one creative director to the other without any real direction, there’s no way to build these cultural movements and worlds of shared significance.
Yes, a new face in the house generates hype and may bring a sudden surge in revenue. Still, if the cycle is repeated too many times too quickly, everything starts feeling like a marketing move, not enticing and ultimately heartless.

"I feel a deep need to be part of what’s unfolding [in fashion], even if I don’t clearly understand it, because I know it’s significant." Cultural Opinion Leader

📱 The Double-Edged Sword: Social Media's Influence on Luxury's Trajectory

Social media often acts as a false friend of luxury fashion. To talk and appeal to the masses while maintaining an aura of uniqueness and exclusivity can be a tricky duty full of potential slip-ups. 

On the positive side, social media’s accessibility and pervasiveness make it the obvious and mandatory option to amplify reach and draw sales. Social media platforms are powerful marketing tools, fueling aspirational desires and keeping luxury products in the public eye through curated images of luxury lifestyles coming from brands and influencer campaigns.

However, the same platforms, with their immense reach, can expose flaws, amplify criticism, and contribute to the loss of exclusivity. Overexposure, the impossibility of controlling the narratives attached to an item or a brand, and the normalisation of showing off counterfeit items, all make the allure of luxury fade out.

Moreover, jumping on every latest trend to increase visibility could be remunerative in the short term, but it definitely tarnishes the brand’s reputation in the medium/long run. This applies to both communication style and product: people started wondering whether the brands have an original voice or are just burrowing that of people with large social media followings. At the same time, they want to see originality in the collections, and not just have items thrown at them because they reflect the latest sensation.

Fashion houses are then tasked with the assignment of creating the right balance between virality/abundance and exclusivity/scarcity through their social media storytelling. The question is: how can we be online without cheapening up luxury fashion?

🎤 The Impact of (Bad) Influencer Marketing

Directly connected to the previous point, those who have once been able to bring a company to the stars, now are often part of its downfall. We are talking about influencers and influencer marketing done wrong, even if with the best intentions.

We could spend hours debating on who should and shouldn’t be considered an influencer. We could also tell you something that you probably already know: that huge crowds of followers do not always equal good news for the marketing department. In our experience, a strategic way to go is to get deeper into the target audience's cultural fabric and harness the power of micro and nano influencers.  

What should immediately ring an alarming bell is that the constant bombardment of gifted luxury items on social media has diminished the appeal and exclusivity of these products. This saturation, combined with concerns about the authenticity of influencer endorsements, further erodes consumer trust.

Luxury is increasingly perceived as more about marketing and hype than genuine quality and eliteness.

I have a lot of designer pieces. But you see so much on social media worn by basic influencers. The allure has been lost for me with many items. So I think twice before I buy luxury now.” Instagram comment

🪄 A Loss of Store Experience Magic

Saying that the store experience in luxury fashion is no longer luxurious seems almost blasphemous, like desecrating a sancta sanctorum. Yet here we are.

First came the long and tedious waiting lines. Then, reports of dismissive and unhelpful sales associates. As an aside that shouldn’t be overlooked, no more water, coffee or champagne for those who are not in the highest VIC rankings.

When we, from the aficionados to the curious aspirationals, approach the luxury boutique, we expect personalised service and impeccable attention to detail. Feeling unwelcome in an unspecial place contradicts the core luxury promise of exclusivity and tailored experiences. 

This, coupled with mass production and declining quality, has made luxury increasingly indistinguishable from mainstream retail.

Once upon a time, shopping for luxury goods was an unforgettable, nice experience. Nowadays, you have to fall in line or get frustrated online to book an appointment. Sorry, but I’m not gonna fall in line like I’m waiting for a Salvation Army handout when in fact I intend to spend a significant amount of $$$!” Instagram comment

Need more time to read and digest? Get the article in your inbox by signing up here.

Solutions, Finally

So, here we are. You might have come straight from the beginning, ready to take action and see the bright side of the story. Or you may have endured the darkness of the negatives and are now seeking the light at the end of the tunnel. We understand both – even if you decide to read what follows first and then go back to the bad news later.

What you will find from now is an actionable path to reconnect with the essence of luxury fashion and project it into the present and future.

We are not big fans of shortcuts and quick exit strategies, but we also believe in clarity and efficiency. Our recipe for success is far more articulated than an “if A, then B” explanation.
Nevertheless, an efficient strategy strongly relies on clarity and the ability to simplify complexity to make it understandable and actionable.
That’s what we do: we listen to the complexity of human attitudes and behaviours, we contextualise it in a specific industry or market segment, and we find new explanations and potential solutions.

Who Are Your New VICs?

There’s a common thread that runs through the following paragraphs, what may actually become the Northern Star of luxury fashion: the customer.

Knowing and understanding the people who look at brands and Maisons as sources of wonders and delight, of status and prestige, and who are willing to spend and invest because of it, is non-negotiable.

So, let’s start from the basics. Do you know who your VICs are? And, more specifically, do you know who the NEW VICs are? In an ocean of CRM data and marketing reports, who are the people who knock at your door?

You may have already heard it, but Generations Y, Z, and Alpha will become the biggest buyers of luxury goods by 2030. This means that the younger generations are already engaging with you and are eager to do it even more if you just let them. 

These are going to be our new VICs. But who are they?

In the majority of cases, they are people who were born in affluent families. This means that they are accustomed to luxury, yet the socio-political evolutions they endured in their formative years have led them to approach luxury in ways that may differ from those of their parents and older relatives.

Firstly, they do their own research and know what they want. A life spent among the elite, plus having internet access from a very young age, has taught them what the luxury codes are, how to recognise them and how to make them their own. That’s why they demand absolute transparency from brands and roll their eyes at situations they perceive as marketing ploys, such as making people queue in front of a boutique.

Secondly, they live a globetrotting life. Boarding schools, family vacations, holiday homes, boats and private jets have led them to feel as if their whole world is their playground. Because of this, their sense of exclusivity is directly tied to having easy access to what they want, when they want it. And since they know their worth, they want a preferential lane everywhere they go.

Living immersed in luxurious vibes hasn’t taken away their sense of wonder, though. On the contrary, they truly appreciate when a brand can transport them into its world, showing them amazing artistic capabilities combined with a never-faltering heritage. However, they don’t just want to be the spectators and passive consumers of trends: they want to be their co-creators. They want to feel special, they want the brands to be talking directly to them and ask them their opinions, also letting them customise all they desire. They have trendsetting potential, and they want to develop it.

The way to ensure long-lasting relationships with younger consumers is, therefore, by intercepting their values: participation in the brand’s legacy, the possibility to self-express through the personalisation of items and trends, transparency, recognisable timelessness of the pieces they buy, and accessibility to the brand. 

And Who Are Your Potential New VICs?

Generational wealth is not, however, the only one leading the market right now. There are new potential VICs on the - very close - horizon, and to find them we have to ask ourselves: where is the new wealth?

The answer is: in industries that are, for the most part, technology-driven.
We are talking about digital and alternative investors, young people diversifying beyond traditional stocks and bonds and showing interest in real estate, cryptocurrencies, and private equity. About tech entrepreneurs launching and scaling startups, often backed by venture capital, and about venture capitalists and angel investors. About people who are building empires on social media content creation and social commerce through sponsorships, ad revenue, and viral product lines. About esports moguls, Web3 pioneers, software and app innovators.

All of them are building and solidifying their wealth as we speak, yet their form of success goes beyond status and money, and it’s cemented on the values they often build their richness on: disruption of the status quo, entrepreneurship made easy, optimism, a sense of community. And what we found was missing from the picture when analysing the target opportunities for luxury brands within these audiences are the tastemakers.

If we offer cultivation of taste, beyond status, we stand out from the competition and create long-term relationships with these new VICs. They will come to us for advice and products if we acknowledge their rising power and invite them to co-create new trends with us. No need to disrupt the tradition, though: they understand and respect it, especially when it’s presented as a form of art and, once again, can become a valuable asset for the future.

Humans First is the New Lux

We have just stated that technology and the digital world are driving a new wave of wealth. And yet, what we need to look out for to steer the wheel of the luxury fashion industry is the human factor.

When it comes to purchasing a luxury good, people want to be considered as people. Moreover, they want to be recognised for their unicity.
AI improvements, tech transactions, virtual realities: all useful, but they can’t substitute the presence of a familiar face who builds a custom relationship with you and makes you feel valued.
That’s another element that is losing up a bit amid tech shiny objects: the bespoke attitude, the ability to make people feel special, acknowledged and listened to.

What we both opined was the failure to be recognised by a brand to which we were, in our hearts and minds, committed – there was an emotional bond there which we were expecting to be recognised and rewarded. Once upon a time, pre-globalisation, pre-the democratisation of luxury and its march towards universal domination and presence, we had distinct and very personal relationships with our tailors, couturiers, and other makers, who not only knew more about ourselves than they cared to admit through their intimate engagement with our bodies but recognised the value of our patronage.The Liminal Luxurian

Prioritise Quality and Craftsmanship Over Mass Production

The quality and craftsmanship of luxury goods are under continuous scrutiny, and people are more discerning than ever. They won’t be easily fooled.

Transparency about the production process and the avoidance of mass-marketing strategies are crucial. Right now, there’s so much negative buzz about low-quality materials and the poor craftsmanship and durability of luxury items that those who will restore consumer confidence in quality and longevity will become the trailblazers of new growth.

Deeply understanding what quality and craftsmanship mean for your consumers is, of course, an essential first step in this journey. You can and should research meaning through ethnographic and netnographic analysis, interviews with Cultural Opinion Leaders, and co-creative workshops. We’re here to help explore how these methods can work for you.

However, once you have gathered the data from the consumers, the other question is: how do you communicate everything that you have learned with an audience that has become wary and isn’t fully trusting you anymore?

Think about solutions that take quality and artisanal artistry back upfront so that everyone can see it. We are talking about: 

  • Open house events or pop-up ateliers where consumers can witness artisans at work

  • AR/VR experiences where users can explore the step-by-step production journey of a luxury item

  • Exclusive masterclasses or co-creative workshops where customers, influencers, or media can try their hand at various techniques

  • In-store or digital experiences where consumers can interactively test the durability of products

  • Campaigns that humanise the production process by telling the stories of the artisans behind the products

  • Private tours of production facilities, design studios, or artisanal workshop

  • Sensory zones inside stores where customers can physically interact with materials and components.

These are just some examples of actionable initiatives. You may find yours here or maybe get fuelled to invent something new. Nevertheless, we encourage you to take a step and make the beauty of what you do feel more concrete than ever.

Embrace Transparency and Ethical Sourcing

The same stated above applies to the concepts of ethical sourcing and sustainability: if we can be trusted on these aspects, they will concur to positive developments for the industry. Also, if we learn to communicate in a transparent way that resonates with both the brand and the audience about potentially spinous topics, we are in for a fulfilling and long-lasting relationship with the customers. Think, once again, about initiatives that could lead to re-gain trust and are not just another webpage about eco-friendliness (or, if a webpage needs to be, re-imagine it in a world where the consumer wants to have hands-on proof that what you are saying is true). They could be well-explained QR codes or NFC tags on products that allow consumers to trace the item's materials back to their origins, visible footprint labelling (e.g., carbon emissions, water savings) on products and marketing materials, virtual tours of sustainable facilities, and partnerships with artisans and communities that promote sustainable production methods.

Below a great example of brand addressing some of these points: Endelea

In our studies, we also encountered a peculiar phenomenon when it comes to sustainability that should be kept in mind for the time being. Although people declare that it is a fundamental value they look for in a brand, there’s often no real environmentalism beyond their words: they simply expect companies to be “green” because they associate it with a good image. And if the brand's image is good, so will the image of the people who wear it. This avoids risks of public damage, something that can be more feared than anything connected with the environmental accountability of a brand. 

We believe a disclaimer is needed here: sustainability is critical to the future of humanity, so do not take a superficial approach to it. However, always keep in mind how relevant this topic has become in the context of cancel culture, and do not underestimate the benefits and risks of this intersection of interests for a brand.

Luxury Fashion as an Asset

What we just discussed, from prices to quality, craftsmanship, and sustainability, contributes to distinguishing luxury fashion from any other form of fashion in a very specific way: it makes it valuable as an asset.

First and foremost, luxury fashion can be a financial investment, and the new VICs are already very aware of that. Being savvy and well-informed, they know how much limited-edition accessories and couture pieces can increase in value over time, becoming collectable assets. That knowledge is starting to spread even to other tiers of customers and other, even less exclusive sides, of luxury fashion (e.g., vintage luxury). It is no wonder, then, that the luxury resale market is currently booming, especially among younger generations. 

"Besides checking the brand’s website, my online shopping experience is largely made of browsing my favourite pre-owned and resale platforms (eg. Ssense, Vestiaire Collective, The RealReal…) I want to see at what price the piece I’m interested in is being resold or if there’s an even better alternative on the market. For me, shopping is a comprehensive process, I research extensively across multiple sources before opting for purchasing." Cultural Opinion Leader

Then, luxury fashion can represent a form of social currency. It is no secret that owning and showcasing luxury items can enhance one’s personal brand and social status, symbolising success, exclusivity, and taste, providing intangible benefits like influence, recognition, and entry into elite circles. For those, like the VICs, who are already part of those circles, it means strengthening their position, enlarging their portfolio and being reassured of the goodness of their investment.

Last but not least, luxury fashion items often carry emotional value and are passed down as heirlooms, creating a sense of legacy and continuity. A well-preserved piece from a renowned fashion house can hold sentimental significance while maintaining its material worth, blending heritage with financial value.

While this might all be well-known, we often forget something of the utmost importance: we should make consumers feel like what they are purchasing IS actually valuable. That it is unique, precious, durable, and timeless. And, therefore, worthy of investment.

Brands are Cultural Ecosystems

As you may have started to sense, what is now asked of brands and Maisons is to re-think their existence as mere providers of products and services and to become something completely different. In today’s fast-paced cultural landscape, where trends emerge and fade almost overnight, consumers are seeking more than products - they want purpose, connection, and belonging.

Brands have now the power to transform into cultural ecosystems that offer experiences, ideas, values and, ultimately, a community that reflects people’s identity, lifestyle, and principles. They have the opportunity to serve as connectors in an ever-changing society.

By shifting from a purely sales-driven approach to one centred on meaningful engagement, they can foster spaces where people gather, collaborate, and share experiences. Whether through immersive experiences - such as in-store cafes, pop-ups, exhibitions, and happenings - exclusive membership communities, storytelling that involves cultural authenticity, or innovative digital hubs, the focus should be on creating value beyond the purchase.  

Moreover, by inviting consumers to participate in ethical and sustainable initiatives, brands can turn individual actions into collective impact, making customers active contributors to meaningful change. In doing so, they don’t just sell products, they build movements, create culture, and forge enduring relationships.

"People are seeking authentic, real-life connections. The metaverse, despite all the hype and effort, hasn’t become the social space we imagined—it feels abandoned." Cultural Opinion Leader

Connect with Customers Through Storytelling and Luxury Codes

Let’s be, once again, very practical: how do we effectively convey everything that has been said so far? Through storytelling.
Brands should find their voice, and their voice should reflect their personality. What’s a brand’s personality? Is the amalgamation of their heritage, the trends they are following and creating in the present, and the customers they want to be loved by. It’s a thin line to walk, the one between staying truthful to the origins and adapting to a dynamic socio-cultural environment, but it’s also what makes a brand’s voice and personality resonate with the audience and feel real.

"I’d like brands to connect with me on a deeper level. For instance, I’d like them to behave online in a way that says: <That’s how I would engage with you if I were a real person>." Cultural Opinion Leader

When we talk about being rooted in today’s society, we also mean that we should never overlook the importance of the socio-cultural component in buying a luxury item. People still do it because they want to be part of a certain group and they want to signal it. Being aware and mindful of this helps us craft our storytelling in the right way.

As examples of actionable initiatives in this direction, we have tested the importance of helping brands partner up with cultural influencers to create limited collections and events that connect the brand with specific cultural movements, allowing customers to feel part of a larger, meaningful group. We could take this experience a step further into the brand’s essence and design products with subtle but recognisable brand-specific features that act as social signals, like iconic patterns, unique stitching, or encrypted logos. These elements allow customers to discreetly signal their membership in an elite group. IYKYK ;)

And if you are wondering about more straightforward visual storytelling techniques, here is the confirmation of something you might already know: we should always showcase luxury products worn by people in real life, or at least in aspirational editorials. Look for empathy, not bland showcasing.

"Product photography on retail websites, with items against plain backdrops, doesn’t quite capture my imagination. I'm far more likely to invest in something when I see it featured in professional magazine layouts, where stylists have created combos with unexpected elements. This has a real-world context that basic catalogue images just can't match. I’m prone to purchasing when I see a garment brought to life, something I can picture as part of my own wardrobe. I feel connected to clothes when I see them worn by someone." Cultural Opinion Leader

Navigating the Influencer Landscape

While influencer marketing remains prevalent, there’s a growing sense of fatigue and distrust among consumers. Brands seem to privilege sheer reach over authenticity and transparency, resulting in lacklustre collaborations and the massification of their products. 

Influencers, however, still hold a great and untapped potential in luxury fashion. Analysing, scouting, partnering with and supporting influencers who genuinely align with our values and engaging in more meaningful collaborations can help rebuild trust and avoid accusations of inauthenticity. Moreover, it can help brands build genuine connections with the influencers’ loyal followers and indirectly affect buying behaviour.

There are many “hidden gems” among influencers out there who are waiting to be discovered and redesign the market. Why can’t you be the one who unleashes this power?

Cultivate an Aura of Mystery

In a world saturated with constant exposure on social media, creating a sense of exclusivity through understated elegance and limited communication can be beneficial.

In a sense, is like going back to the original meaning of the word “exclusivity”, which spans way further than a fabricated sense of scarcity and unattainable prices. It’s a promise of beauty that might or might not be out of reach, an invitation to discover more when you become part of an elite instead of having every product dished out everywhere all the time.

What once felt like a curated, refined experience now seems oversaturated and commonplace. Luxury brands have an overwhelming presence that takes away from what made them special in the first place. The “being everywhere, at all times” approach feels like it contradicts the very essence of luxury.” Cultural Opinion Leader

Create Meaningful Experiences to Restore Trust Into Luxury Fashion Codes

As we have previously stated, luxury shopping should be an experience, not just a transaction. And there is no better place to start creating experiences than the store.

Elevating the in-store experience can help reinforce the perception of exclusivity and genuine luxury. Brands need to reinvest in personalised, exceptional service (yes, and that expensive champagne too) that puts customers at the very centre and makes them feel special. 

Luxury fashion stores serve as immersive environments, with music, scents, flavours, and cultural happenings. They are also capable of appealing to different generations: the ones who already built a spot for themselves, the ones who are ascending the VIC ladder, and the ones who step foot inside for the first time and are ready to be mesmerised. Because, above all differences, the physical store remains a universal point of reference for everyone who wants to fulfil their luxury dreams.

"A shop is not just a shop anymore. It’s a place where people come to belong" Cultural Opinion Leader

Most of you are probably aware of how pivotal the store experience is. However, to overcome the public’s doubts, regain trust and build the magic again, we must design spaces and activities based on timeless luxury fashion codes that people are missing these days: brand legacy and product value.

For example, think about inviting long-time brand enthusiasts and cultural influencers to share their personal encounters with the Maison in intimate, in-store storytelling sessions. Then, we could double down with a preview of upcoming collections that honour the brand’s legacy.

Moreover, we could offer an exclusive service through which customers could bring in pieces from older collections to be authenticated, restored, or customised, emphasising the enduring quality and value of the products.

We often acknowledge that consumers would love to personalise a handbag or accessory with engravings, embroidery, and so on. But we could go the extra mile and pair this service with a branded "time capsule kit" including a journal or keepsake box to document the product story for future generations.

Product value-based activities open so many doors too: we could host live demonstrations of craftsmanship and create longevity testing stations for customers to see and test the durability of materials (e.g., scratch-resistant leather, water-repellent fabric). We could also answer an unmet need with “luxury care corners”, dedicating an area of the store to educating customers on how to care for their luxury items to extend their lifespan. 

And so much more.

The Ultimate Omnichannel Luxury XP

Let’s state the obvious here. When we promise customers AI and immersive worlds, first we need to make sure that Wi-Fi works and customer data/stock data are available and easy to access.

That’s to say that words like “omnichannel” and “phygital” often seem oversold: they look easy on paper, but they are ultimately hard to obtain due to structural issues, organisational misalignments, costs, and many other reasons. And yet, building an infrastructure that connects the physical and the digital side of the brand, both from the consumer and the company’s point of view, is now more necessary than ever.

That is why we have mapped the ultimate Omnichannel Luxury Experience for everyone who decides to take their phygital game many steps further. 

Ideally, it should have three main components: AI Concierge App, Digital Experience, and Physical Experience.

1) AI Concierge App

Most luxury brands currently lack a personalised login interaction and fail to provide clear, easy access to their brand ecosystem. This shortcoming represents a significant opportunity for differentiation. By addressing this gap, brands can meet one of the market’s most pressing needs: building strong and meaningful relationships with their consumers.

Let’s see how the AI Concierge App addresses exactly this. 

Luxury consumers need a seamless and personalised journey. An AI Concierge App should not only provide access to products but also allow users to view their history with the brand, unlock perks, claim rare items, access events and exclusive experiences. 

Consumers expect now to load a wishlist directly to their shopping bag and have it ready in store for them to try on. Any store in the world, where they are always uniquely recognised and served. 

THIS is luxury

Additionally, integrating a digital wallet into the login process can truly impact sales among new wealth markets and target audiences.

Another big need of luxury consumers is styling.
By incorporating AI within our apps and websites, users could receive not only fast customer care but also tailored wardrobe suggestions, personalised fashion guides and styling pieces of advice. 

Transparency in pricing and a direct, no-fluff approach would further enhance trust and engagement, especially among younger consumers, who expect easier access to luxury brands' worlds. 

Together with a great AI concierge platform, the luxury fashion buyer can step into the digital and physical ecosystems of the brand. Spoiler here: it doesn’t matter where they land, it will always be an experience to remember. 

2) Digital Experience

Luxury consumers expect brands to be present and knowledgeable of their digital and virtual worlds. Starting from being worn by the right cultural influencers on Instagram and TikTok, and ending in virtual realities. Remember, new wealth also derives from people investing in digital art, virtual tech and gaming, so no field should be left untackled.

The most important factor to consider here is that our products will be launched in the context of some cultural ecosystem that already exists and is meaningful for thousands or millions of people. Whether it’s about connecting with audiences on social media or offering gamified experiences on Roblox, we must observe how people behave in these worlds, analyse their attitudes, habits, lingo, motivations, and so on, and act accordingly. We have pioneered this type of research and are constantly implementing new ways of bringing you closer to the universe of meanings of your audiences. Feel free to ask us how to do it.

3) Physical Experience: Brand’s Immersion

As previously said, this is where customers go to feel special

We have already explored the store experience, yet something is worth repeating: don’t miss the great opportunity to use it to restore trust in luxury fashion.

And What about Tech?

Tech is not a sine qua non condition, but it can be a competitive edge among other brands. If organically implemented and with the correct balance of aesthetic and functionality, it can be an incredible enhancement of a Maison’s heritage and craftsmanship instead of taking anything away from them. 

In-store, we could implement technologies like 3D printing for limited collections, immersive screens, and augmented reality tools to promote product interaction. For example, AR could overlay information about a product's creation process, from fabric origin to design inspiration, offering a deeper connection to craftsmanship. AR could also project stories onto iconic pieces in the store: customers would point their phone at a product, and an overlay video would explain its history and connection to the brand’s legacy.

AI tools could personalise recommendations based on a customer’s style, preferences, and even physical attributes like skin tone or hair colour.

We could captivate diverse age groups and offer multiple entry points: digital-first pathways for tech-savvy audiences and in-store experiences for those less familiar with virtual platforms. 

We could enhance engagement through storytelling by creating immersive rooms that detail the creative journey behind each collection, showcasing mood boards, designer interviews, and references to cultural inspirations. Imagine customers walking into the worldview of your designers

And of course, blockchain technology is already here to track provenience and ownership and maximise the asset value of luxury products. It’s just a case of educating consumers and sales advisors on it in the simplest and most actionable way.

Finally, in our days, all customers expect all luxury brands to enable fast payments from their apps/web apps saving them from their enemy number one: queueing. 

Waiting out of a luxury brand shop in a row is simply not happening.” Cultural Opinion Leader

Lifestyle Concierge Service

Tech is great and shiny, and it can help us achieve marvellous goals. Yet, we will never get tired of repeating that luxury is about the human element. Remember our point above? Humans First is the New Lux.

And if we talk about the staples of luxury experiences, the literal columns of the luxury temple are the Sales Associates. 

While conducting our observatory on fashion, we met and interviewed many of them. Their words and memories helped us learn about brands and consumers in ways that are unimaginable if you have not been living and breathing in those environments for years.

While Sales Associates are invaluable, there is a downside to their incredible professionalism and dedication to their job. That is, they carry too much weight on their shoulders and may end up in a loop of misalignments with the customers. 

Sales Associates are asked to be the first and most important touchpoint between the customer and the luxury dream. To remember not only all the VIC’s names and birthdays but also the VIC’s families, occasions, motivations, and so on. To step into their lives and lifestyles and make them better, going way beyond a brand service.

They are implicitly asked to be Lifestyle Concierges. 

But they are also humans who need training and updates, to feel like their work is valued and fostered. Their team, their superiors, the store environment, the tech, and the brand’s vision, all have to work in synchronicity to allow them to be the curators of the most exclusive moments in the store. 

The only way they can do this with constant quality is by being aided by the Omnichannel tech: when personalisation, inspiration and bookings are handled well, for example by the brand’s AI, the Sales Associates can bring warm company and human understanding to the experience and make it absolutely perfect. 

WOW Effect

Stepping on the other side of the glass and looking through the luxury fashion shoppers’ eyes, what can’t be missing is the WOW Effect element. 

Luxury is entering the shop with high expectations and still getting surprised for the best. It is having that one moment where that one Sales Associate does something that makes you say: “It made my day”. 

It can be an exclusive experience with the brand, an innovative store design, a hidden gem you did not expect to find, or the staff going the extra mile for you. Whatever it is, it takes great work and a kind of preparation that goes way beyond product knowledge.
Once again, a great omnichannel architecture that makes it easy to track products, connections, and service availability could aid the store staff in doing wonders. 

The Journey is Before and After Purchase

We touched on the before-purchase phase while talking about authenticity in storytelling and influencer marketing. We analysed the importance of an immersing and terrific store experience.

So, why make this whole castle fall when it comes to the after-purchase stage? 

Imagine entering a world where everything looks and smells amazing, being willing to spend on an equally luxurious product and packaging, being the protagonist of a luxury ceremony…

And then, receiving a generic email that starts with “Dear customer, thank you for your purchase”. Immediately followed by being fed a series of untailored newsletters with everything that is on the brand’s agenda.
Simply put, consumers go from luxury to spam.

We can do way better than this. We can send very few, well-thought messages that are based on customers’ tastes and preferences, morphology, and topics of interest. Some customers would also love follow-up information, like warranty, reparations, and how to take care of the purchased items. As we heard a VIC of a notorious Maison say: “Brands are already monitoring my preferences, so they should know what I need”.

Other times, however, every kind of contact is too much contact, and there can only be a personal relationship with a Sales Associate. The solution here is, after becoming experts in connecting with the customers, giving them the clear option of choosing what they want from us. 

Additionally, the new wave of younger generations of consumers brings some interesting changes in the post-purchase phase too.
Namely, the taboo topic around loyalty points is ready to be disrupted. One of the best ways to increase brand consideration among Gen Z and Millennials is to implement reward systems to incentivise their engagement and loyalty
We can already hear some of you saying: “It is a cheap-looking tactic! It’s for the masses!” 
Well, not necessarily. It can feel as bespoke and exclusive as you wish. Instead of an online orange button for people to click as if they were entering a sweepstake, think about a paper letter of congratulations and handwritten perks that grant access to private events, early product releases, and members-only content.
This sort of exclusivity fosters a sense of belonging to a high-status community and therefore speaks to the heart of luxury buyers.

XP: How Do They Want to Feel?

All in all, our North Star is always the customer. How do they want to feel? Elevated? Elegant? Sophisticated? Sexy? Powerful? Effortlessly chic? Or glamorously confident?

One thing is for sure: they want to feel like they made a good choice in coming to you. That you added tangible value, of any kind, to their existence. And they want to come and do it all again very soon.

So, get to know them. Build a world for them. And make them feel exactly as they want to. 

Final Thoughts and Where to Start 

The luxury fashion industry stands at a critical crossroads, where the echoes of its past grandeur collide with the urgent demands of a shifting cultural and consumer landscape. While the challenges of diminished exclusivity, diluted craftsmanship, and wavering identity loom large, they also present an opportunity—a call to reimagine what true luxury means in today’s world. By embracing transparency, nurturing cultural ecosystems, and rekindling the power of storytelling and personalisation, luxury brands have the power to reignite their relevance and allure.

We are well aware that this is a lot to take in. You might be feeling pressed to get into action, but also overwhelmed by the quantity of information and possible directions.
To overcome a potential decision paralysis, here is an insight that could represent the spark that ignites a new momentum: all in all, these people want to invest in you.
They want to believe again in the magic of fashion, and they want that magic to talk directly to them.
So, take the first step towards them. And be sure that we are here with our strategies, insights, and expertise to help you navigate this journey into a renovated era of the luxury world.

Also, if you want to go through this article again with more calm, sign up here and receive it in your inbox.

Finally, if you want to know more about Netnography, Ethnography and deeply understand your consumers, Cultural Opinion Leaders and/or Cultural Influencers, drop us a message.




|