At our latest Insights Series event, ‘Decoding Desire’, we were joined by London Business School Professor, Dafna Goor, to explore the evolving world of luxury branding. Drawing on her research and work with brands like Hermes, Mont Blanc and Cartier, Dafna explored the enduring appeal of luxury, and the three pillars that define it: timelessness, scarcity and exclusivity; and the inbuilt tensions brands must navigate to stay relevant and grow.
Here’s a summary of the key takeaways, that offer valuable lessons for brands across the spectrum.
1. Timelessness vs. Trends
The timelessness of luxury seems at odds with today’s trend-driven world. The challenge is, how can a brand embrace innovation, technology and cultural trends without compromising its heritage or core identity?
To succeed any innovation should enhance the brand’s DNA and remain coherent, rather than rewrite it. Transparent partnerships offer a way to meet consumer expectations without diluting the brand’s DNA. Think Hermes collaboration with Apple Watch.
2. Scarcity vs. Sustainability
Luxury is built on scarcity, the idea that rarity drives value and desirability. However, modern consumers are increasingly concerned about sustainability. This creates a tension between emotional aspiration and rational responsibility.
The key to resolving this lies in reframing sustainability as an asset, not a compromise. A timeless heirloom passed down through the generations is valued for its durability, craftsmanship and quality. This approach can increase consumer willingness to pay and strengthen desirability, when done authentically.
3. Exclusivity vs. Inclusivity
Exclusivity has long been a cornerstone of luxury: consumers desire to feel part of an elite group. But to grow, brands must balance the need to democratise; be more inclusive whilst remaining exclusive. The magic lies in creating belonging without dilution. Rituals, secrets, and personalised experiences can make consumers feel special and reinforce status. These approaches help brands reclaim exclusivity by making it accessible through connection rather than restriction.
The talk underscored that luxury brands need brand coherence (a clear narrative and rich storytelling reinforced by brand symbolism) to grow in a world that demands cultural relevance, inclusivity and sustainability. At the same time maintaining the core pillars that make luxury have enduring aspirational appeal: it’s timelessness, scarcity, and exclusivity. This requires a delicate balancing of the brands ability to generate magnetic desire and to disrupt, whilst remaining coherent and committed to the brand's core identity.
If you would like to hear more about this, feel free to get in touch at louised@brandopus.com.
