Rather than focusing on price points and status, luxury brand managers should think of luxury as the ability to create extreme value for clients.
Tesla’s recent discounting initiative is unwise. Such short-term gains always come at a price. And the price, in most cases, is the brand.
As we enter a new phase of uncertainty and volatility, getting back to the basics will be key to strengthening the equity of your brand in 2023.
Where there is no story, there is no extreme value, as the story can carry 99% or more of the total perceived value in luxury.
Half of the existing luxury brands today likely won’t survive by 2030. They must deliver a best-in-class performance or risk becoming obsolete to Gen Z.
When metaverse projects are done wrong, clients (current and potential) will shake their heads in disbelief, move on, and let the value of the initiative collapse.
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