Latest / The Future of Luxury Podcast with Dr Daniel Langer / The Cost of Waiting Equite Luxury Report 1

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The Cost of Waiting Equite Luxury Report 1 · The Future of Luxury Podcast with Dr Daniel Langer

0:03
Most brands think they sell luxury.
0:05
>> [music]
0:06
>> Very few actually create desire. This is
0:08
the difference.
0:10
The future of luxury podcast [music]
0:12
with Dr. Daniel Langer.
0:21
Welcome to the future of luxury. I'm
0:24
Daniel Langer. Today I'm recording this
0:26
podcast from Palma de Mallorca and I
0:29
just had the opportunity to present our
0:32
luxury report 2026 to 2030 uh during a
0:36
luxury session today to a global luxury
0:39
brand. The report, we called it the cost
0:43
of waiting and the reception has been
0:45
unprecedented. So, this is why I wanted
0:48
to dedicate this episode and also a few
0:51
a couple of future episodes to the
0:53
podcast give you a deep analysis.
0:56
Since the publication, I've given
0:58
various media interviews on the finding
1:01
and I have presented the report in
1:03
strategy sessions like today with brands
1:05
all over the world. The feedback has
1:08
been remarkably consistent. Leaders of
1:11
luxury brands tell me that this report
1:13
is relevant to them well beyond
1:16
information. It is really shaping in the
1:18
meantime business decisions, investment
1:20
priorities, market strategies, and how
1:23
brands preferred prepare for the next 5
1:25
years. So, we'll take some time today to
1:28
look into the details and to really
1:30
dissect what we need to know about the
1:33
findings.
1:35
And
1:36
you know, what we see here is that the
1:39
industry is sensing that this moment is
1:41
different. And therefore, it deserves
1:45
more than just a headline summary.
1:47
So, I will take you
1:49
not only through the details of the
1:51
report, but I want to give you also a
1:53
bit of context beyond that.
1:55
Why we see what we see. I will show you
1:58
what it means for your decisions and
2:01
today we start with the foundation.
2:04
Um, what carried the industry for the
2:08
last 20 years and also why I believe
2:11
that a lot of those conditions that we
2:13
have experienced and experienced will
2:15
not repeat.
2:17
Our cost forecast also has clear
2:20
assumptions through 2030 that I'm going
2:22
to explain and I will also show you what
2:25
separates the brands that will grow from
2:28
those that will quietly, in some cases
2:31
and other cases quite abruptly, lose
2:33
relevance.
2:35
To understand where the industry is
2:37
heading, you have to understand what
2:40
carried it until here. So, let me take
2:43
you a little bit back in time and we
2:46
will analyze the growth trajectory over
2:48
the last 20 years or so.
2:51
For two decades, roughly two decades,
2:53
the personal luxury goods market grew
2:56
almost constantly. Few exceptions, most
2:59
notably the financial crisis, you
3:00
probably all remember 2008-2009,
3:03
and even then the market proved
3:06
remarkably resilient with a quite fast
3:09
recovery.
3:10
Um, and also getting not only back on
3:12
track but continuing um, the growth path
3:15
that it has. The growth rate over the
3:17
period
3:19
um, in these kind of 20-25 years was
3:21
roughly 6% in a compound annual growth
3:24
rate. 6% is roughly twice the growth of
3:28
the global GDP.
3:30
And because the growth went on for so
3:32
long and survived a global financial
3:35
crisis and many other setbacks,
3:38
you know, many industry analysts that I
3:40
speak with come kind of to the
3:41
conclusion that these kind of 6% can be
3:44
seen as a growth benchmark, as a quasi
3:47
intrinsic growth rate.
3:49
And this is, you know, as if luxury was
3:51
simply grew, growing 6% year on year
3:54
just because luxury is luxury.
3:56
And our analysis says something very
3:58
different. The growth was never
4:01
intrinsic.
4:02
It was driven by specific factors. And
4:05
when I decompose those 20 years, I see
4:07
two distinct phases.
4:09
Let's start with phase one. The 2000s
4:12
into roughly the 2010.
4:14
This was an expansion story and one that
4:17
ran on several drivers at the same time.
4:20
The most visible was distribution.
4:22
Luxury brands expanded their footprint
4:24
massively. New boutiques, new markets,
4:26
new airport locations, new department
4:28
store corners. Think about how the map
4:31
changed in those years. Cities that had
4:34
once one luxury address suddenly had
4:36
entire luxury districts. But underneath
4:39
the distribution sat something even more
4:42
powerful. Capital.
4:44
This was the great era of consolidation.
4:48
Independent family maisons were acquired
4:50
and integrated into the large luxury
4:53
groups wave after wave of M&A activity.
4:58
For example, I recently had lunch with
5:00
Anna Fendi and she told me about the
5:03
first years of Fendi and that it took
5:08
them almost about 60 years to or 50 or
5:11
60 years to move from one store that
5:14
they operated into the, you know, more
5:17
than 300 stores that they had today. So,
5:20
it was a very slow growth in the
5:22
beginning and then around that time that
5:25
we are describing, a massive, um, not
5:28
only expansion, but also massive
5:30
activation around the brands. And Fendi
5:32
is not the only example, there are many
5:34
mores.
5:35
And with that integration came something
5:38
the industry had never had at this
5:40
scale. Professional management, shared
5:42
infrastructure, and above all, capital.
5:45
Brands that had operated as artisanal
5:47
houses for centuries suddenly had the
5:50
balance sheets of a global corporation
5:53
behind them.
5:54
And that capital really went to work.
5:57
Investment in brand building exploded.
5:58
Advertising reached levels the industry
6:01
had never seen before.
6:03
The mega campaigns, celebrity
6:05
ambassadors, monumental flagships that
6:07
functions as brand statements more than
6:10
retail spaces. These are all examples of
6:13
how the capital was spent. And at the
6:15
same time, portfolios expanded across
6:17
categories.
6:19
For example, fashion houses
6:21
um often moved into accessories.
6:23
Accessory houses moved into beauty.
6:25
Watchmakers moved into jewelry. Every
6:27
brand wanted more entry points, more
6:30
connections to the customers, more
6:33
occasions to capture the client. So,
6:36
put it together. More capital, more
6:38
brands under professional management,
6:40
more advertising, more categories, more
6:42
doors. More offer, more demand, and the
6:46
industry grew.
6:48
This was the first phase. And then came
6:50
phase number two, 2010s to 2020. And
6:54
this was really a wealth creation story.
6:57
At its center, China. What happened in
6:59
China in those years was the biggest
7:01
wealth creation in the history of
7:03
humanity. Hundreds of millions of people
7:06
rising into the middle class. A
7:09
generation discovering luxury for the
7:12
first time and treating the logo as a
7:15
marker of arrival. Brands responded by
7:18
going deep. Distribution expanded from
7:21
Beijing and Shanghai into second tier
7:23
cities, then into third tier cities.
7:27
And every new mall needed luxury
7:29
anchors. And the brands delivered.
7:33
>> I'm Dr. Daniel Langer. I advise [music]
7:36
some of the most iconic luxury brands in
7:38
the world. And I'm also the executive
7:40
professor of luxury strategy [music] at
7:42
Pepperdine University and I teach luxury
7:45
at NYU.
7:46
The luxury industry is changing faster
7:49
than ever before.
7:50
>> [music]
7:50
>> Dramatically shifting consumer
7:51
expectations, the rise of Gen Z and AI
7:54
are redefining what luxury means [music]
7:57
today.
7:58
And this means companies must operate in
8:01
a radically different way.
8:03
>> [music]
8:03
>> This moment demands action.
8:06
And this is why we created Equite
8:08
Intelligence.
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>> [music]
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The world's leading brands trust us to
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prepare their teams for this
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transformation. And this is your moment
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organization.
8:43
But, you know, China was never the whole
8:45
story. Look at the Middle East, it
8:47
transformed the quality of its retail in
8:50
the same period. Southeast Asia did the
8:53
same. And the United States created
8:56
enormous wealth, especially at the very
8:58
top, as markets rebounded powerfully
9:01
after the financial crisis.
9:04
So,
9:05
to understand those 6% compound annual
9:08
growth rates
9:10
that we saw, we have to picture those
9:12
forces working together. On one side,
9:16
brands expanding offers, distribution,
9:18
and brand investments
9:20
funded by unprecedented capital influx.
9:23
On the other side, historic wealth
9:25
creation across multiple regions at
9:28
once. Both running simultaneously for
9:31
years.
9:32
This is how an industry doubles the pace
9:34
of global GDP for two decades.
9:37
And this is why
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I also believe that the 6% CAGR that we
9:43
saw is not really like a law of nature,
9:46
something that brands can bank in all
9:49
the time. It was the product of specific
9:52
conditions.
9:54
Now, the critical question.
9:55
Do those conditions repeat?
9:58
Let's look at them one by one.
10:00
Distribution is now a near ubiquitous
10:02
for many brands. In fact, actually a lot
10:04
of brands are starting to consolidate
10:06
and actually reduce doors again. The
10:09
white spaces around the world are almost
10:11
gone. And in many cities, there are more
10:13
luxury boutiques standing than the
10:15
demand beneath them justifies. I already
10:18
spoke about um a lot of doors already
10:22
starting to close. The consolidation
10:24
play here is largely complete. And then
10:27
let's have a look at China.
10:29
And let me be precise here, because this
10:31
is often misunderstood and I get I'm
10:33
getting so many questions, you know, by
10:35
companies, but also by the media on
10:37
China. And I want to be very clear.
10:39
China will remain a growth country for
10:42
luxury.
10:43
But China is different today than it
10:45
was. It has matured from an emerging
10:47
market discovering luxury into one of
10:49
the most sophisticated, most competitive
10:52
markets in the world.
10:54
Our analysis suggests that the growth
10:56
rate there moves into the single digits
10:59
as a long-term average.
11:01
Instead of the double digits the
11:03
industry built its plans on.
11:06
Maturation doesn't mean decline, but it
11:08
changes everything about the pace.
11:10
The market is moving into a new phase.
11:14
A phase, as I said, of maturization.
11:17
And on top, the maturization comes as a
11:20
shift that is easy to underestimate and
11:22
that our report examines in depth.
11:26
And this is the next generation of
11:28
luxury clients.
11:29
We are
11:31
at the beginning of the biggest wealth
11:33
transfer in human history moving towards
11:35
Gen Z and the generations behind them.
11:38
And our research shows that Gen Z buys
11:41
luxury differently.
11:43
They they apply
11:46
a far harder scrutiny to luxury brands
11:48
than any generation before them.
11:51
Their expectations
11:53
are the highest ever and their tolerance
11:57
for inauthenticity
11:59
is practically the non-existent.
12:01
They inform themselves through channels
12:04
the brands do not control and frankly
12:07
often do not really understand. And they
12:09
respond to peer and creator signals more
12:13
than to traditional brand authority.
12:16
And here I recommend the future of
12:18
luxury podcast episode that I recorded a
12:21
while ago in Shanghai um
12:24
with Daniel Mike Mype and um Thomas
12:26
Dirkson where we look for example in
12:28
depths into the um KOL culture in China
12:33
um and where we dissect really you know
12:35
how um the the entire digital
12:38
infrastructure is completely reshaping
12:41
luxury in terms of um not only demand
12:45
but in terms of influence.
12:47
So now combine
12:49
that what we just discussed with what
12:51
happened to pricing. Prices rose
12:54
massively in recent years and many case
12:57
in many cases those price increases have
13:00
not been backed by value creation and
13:02
customers of course understood this.
13:04
Largely unchanged products
13:06
no commensurate improvement quality
13:09
in creativity or in client experience.
13:12
Put those developments together prices
13:14
that outran value meeting a generation
13:17
of clients who scrutinize harder than
13:19
ever and now you understand why the
13:21
times of near automatic growth are over.
13:25
And clients responded
13:27
Because clients always respond. In 2024
13:30
and 2025, the market was already
13:33
negative. And what is remarkable is that
13:36
this happened in an environment where we
13:38
didn't have any major
13:41
um any major crisis.
13:43
So, 2024 and 2025 theoretically should
13:46
never have been negative, but they were,
13:48
and this is the shift in customer
13:50
expectation. Two consecutive years of
13:52
decline as clients held back on luxury
13:55
purchases
13:56
and redirected their spendings in
13:58
meaningful part towards brands that are
14:01
not only more accessible in absolute
14:02
price,
14:04
but also in their point of view often
14:06
provided a better value perception.
14:09
So, it is all about value. And we
14:12
sometimes have to simply remind
14:13
ourselves. Ladies and gentlemen, life is
14:15
sometimes easy. You provide the right
14:17
value, customers buy. You don't,
14:19
customers run away.
14:21
Our estimates now indicate something
14:23
remarkable.
14:25
Elevated mid-market has overtaken luxury
14:28
as fashion's main economic profit
14:30
creator for the first time on record.
14:33
Let that sink in for a moment. Clients
14:36
did not leave the market. They left
14:38
brands whose value equation stopped
14:40
convincing them. And this is the
14:41
critical bridge to our numbers. From
14:44
here on, growth no longer arrives with
14:46
the tide.
14:47
Growth depends on the actual competitive
14:50
performance of each individual brand
14:52
and on its ability to create desire.
14:55
That is the new phase. And once you see
14:57
it, our forecast makes sense.
15:00
A word on how we build it.
15:03
We did significant bottom-up modeling
15:05
across regions and categories validated
15:07
top-down against historical contraction
15:09
cycles informed by primary research
15:11
across more than 30 luxury houses and
15:13
two decades of proprietary frameworks.
15:16
Our forecast suggests personal luxury
15:18
goods contract 2 to 4% in 2026.
15:22
For 2027,
15:24
our analysis points to a roughly flat
15:26
year in a range of minus two to plus 1%
15:29
and then from 2028,
15:31
we believe we will see a gradual
15:33
recovery 1 to 3% building
15:37
up to 3 to 4% a year. On this path, the
15:40
market approaches its peak and remember
15:43
the peak was 2023, its peak of 369
15:46
billion euros around roughly 2030.
15:50
Within that forecast,
15:52
one number actually matters more than
15:54
the others, a flat 2027. Because you
15:57
know, when you look at 2026 and our
15:58
forecast here, the natural expectation
16:00
would be different. If the geopolitical
16:02
situation stabilizes, you know, the
16:05
assumption could be that 2027 should
16:08
just bounce, but our analysis suggests
16:10
it won't because the indicators point to
16:14
a geopolitical shock just being
16:16
catalyst. It's not the cause of the
16:19
struggles within the industry. The cause
16:22
is what you be just walked through, a
16:24
maturing market meeting a more demanding
16:26
client and a value equation that many
16:29
brands still have to rebuild. That
16:31
rebuilding takes longer than two
16:33
quarters.
16:36
If 2027 comes in roughly flat without
16:40
acute external pressure,
16:42
that would be the clearest evidence that
16:44
the shift is structural.
16:47
So now let me take you
16:49
one level deeper because the global
16:50
number conceals where the pressure
16:52
actually sits. The regional pictures
16:54
matters enormously because geographic
16:56
exposure now determines which brands
16:59
will feel it most. Europe in our point
17:02
of view carries the steepest developed
17:04
market decline in our forecast.
17:07
The exposure here is structural.
17:09
Roughly half of European luxury revenue
17:11
comes from inbound tourists and this
17:14
year every major source of them um is
17:18
impaired at once.
17:20
For example, Gulf tourism, Chinese
17:22
travelers that are redirecting, American
17:25
travel is expecting to soft it
17:28
because of a strong euro. And also
17:30
domestic European demand is in part
17:32
absorbed by the energy effects directly.
17:36
The Middle East shows the deepest
17:38
regional decline of all.
17:40
Our estimate says something between 15
17:42
and 20%. And I need to be transparent
17:45
with you about how this region has
17:47
evolved against our modeling.
17:50
The region was on track to be the
17:52
strongest growing industry region of
17:54
2026 before the conflict in Iran
17:56
reversed it. When we built the forecast,
17:59
our base case assumed a resolution by
18:01
the end of June, but as you all know,
18:04
that resolution has not held. With a
18:06
ceasefire framework effectively
18:08
collapsing, the disruption in the region
18:11
will likely last considerably longer
18:14
than our base case has assumed. And even
18:17
when a resolution comes, the second and
18:20
the third order effects on real estate,
18:23
unemployment, on the confidence of
18:25
residents and visitors may propagate
18:28
well beyond it.
18:30
In our modeling,
18:31
a scenario like this moves the regional
18:34
numbers towards the downside and can
18:36
push the recovery out by 12 to 18
18:39
months.
18:40
What our analysis continues to suggest
18:43
is that the region's structural drivers,
18:46
wealth growth, infrastructure
18:48
investment, cultural development, they
18:51
all survive intact.
18:53
Delayed and not destroyed.
18:56
The high-value Gulf client did not
18:59
change preferences. That client paused.
19:02
And the brands that hold their
19:03
commitment through this period will
19:05
rejoin the recovery from a stronger
19:07
position than those that retreat. I've
19:10
analyzed
19:12
hundreds of crisis
19:14
and the rebound of crisis. And I've
19:17
always seen that after a crisis, there's
19:21
always a reshuffling. There's some
19:23
brands that emerge much stronger than
19:25
others, and these are the brands that
19:26
keep a very close contact with the
19:28
clients, that inspire the clients, that
19:30
continue to invest.
19:31
>> I'm Dr. Daniel Langer, and after [music]
19:34
advising many of the world's most iconic
19:36
luxury brands and teaching both at
19:39
Pepperdine and NYU, I've seen how
19:41
quickly the luxury industry [music] is
19:43
evolving. And the reality is, most
19:46
universities simply [music] can't keep
19:48
up.
19:49
Today's students want more than theory.
19:52
>> [music]
19:52
>> You want industry-relevant skills and
19:54
real frameworks.
19:56
You want a clear path into [music]
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fast-growing fields like luxury fashion,
20:01
luxury beauty, luxury hospitality, and
20:03
other luxury sectors.
20:05
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20:48
>> So, that's the Middle East. The United
20:49
States
20:51
is, in our assessment, the most
20:52
structurally favorable major market
20:54
through 2030, and the single most
20:57
important source of the industry's
21:00
recovery.
21:01
The reason here is the strong wealth
21:03
concentration. It's the deepest in the
21:05
world. The country holds roughly a third
21:07
of global personal wealth, and the top
21:09
tier has compounded as at over 8% in
21:12
real terms in the last two decades. The
21:15
US contracts only 2 to 3% in 2026 and
21:20
leads the return from 2028.
21:22
But the same concentration that makes
21:25
America the strongest market makes it
21:27
also the most unforgiving one. The
21:29
American consumer is direct and
21:31
decisive, quick to reward value and
21:33
quick to abandon a brand whose price has
21:36
outrun its delivery.
21:38
The US is where strong fundamentals
21:41
compound fastest and where weak
21:43
fundamentals unravel fastest.
21:46
Mainland China in our forecast for 2026
21:50
is approximately flat in a range of
21:52
minus two to plus two percent, and this
21:55
may be the most misread number in the
21:57
entire industry. So, let me say
21:59
precisely what it means. The total
22:01
Chinese category holds roughly stable as
22:03
travel disruption brings some spending
22:05
home that had flowed abroad. The Chinese
22:08
luxury market itself is not collapsing.
22:10
What is changing is who captured who
22:13
captures the spending within it.
22:16
Our analysis indicates that Western
22:18
brand revenue in China declines
22:20
um while Chinese luxury brands move from
22:24
peripheral in many categories to central
22:28
in some categories and continue overall
22:31
to take market share. So, we see within
22:34
China a structure to shift from
22:36
international global brands more and
22:38
more towards Chinese brands. And that
22:41
basically conceals
22:43
um the structure
22:44
um behind it. For brands, it means the
22:46
right metric is not longer just mainland
22:49
revenue, it is your share of the Chinese
22:51
consumer's
22:53
wallet measured globally wherever the
22:55
purchase happens.
22:57
And Japan, after a spectacular
23:00
tourist-driven boom, normalizes as the
23:02
yen strengthens, contracting 3 to 5%
23:06
Here the deeper signal is the recent
23:08
Japanese boom was largely largely a
23:11
currency effect, and I've been writing a
23:13
lot about this over the last 2 years.
23:15
Brands that build expansion plans on
23:17
those peak numbers face capacity
23:21
um in a normal
23:22
normalized market um that a normalized
23:26
market may not support. One more thing
23:29
about the recovery. And this may be the
23:31
most important strategic point in the
23:32
entire forecast. The recovery, when it
23:35
comes, will be concentrated.
23:37
Our analysis suggests that it will be
23:39
led by the brands that build strong
23:42
fundamentals.
23:44
While brands that did not will continue
23:47
losing share even as the aggregate
23:49
recovers.
23:51
Think about what that means. The
23:53
industry number can rise while your
23:56
position falls. A recovering market is
23:59
not a recovering brand.
24:02
Which brings us to the deepest pattern
24:04
in the report.
24:05
Where the wealth is actually flowing.
24:07
Because the wealth keeps compounding and
24:10
the biggest wealth transfer in history
24:12
is accelerating.
24:13
What changes is the direction.
24:16
Client expectations are shifting and
24:18
with them the categories. Our forecast
24:21
shows wellness and longevity growing 8
24:23
to 12% this year, the only major major
24:26
category with double-digit structural
24:28
growth sustaining 10 to 15% through
24:31
2030. Wealthy clients are directing
24:34
serious capital toward longevity
24:35
clinics, advanced diagnostics, and
24:38
health itself. Because the only thing
24:41
they cannot buy more of is time.
24:44
So this also
24:46
is kind of leading to a logical
24:48
extensions that experiences and travel
24:51
are growing. In short, clients are
24:53
investing more and more in themselves.
24:57
And when they do
24:58
buy hard luxury, the purchase is
25:00
increasingly made with last lasting
25:02
value in mind.
25:04
That is why jewelry stands out in all
25:06
forecasts as the most resilient category
25:09
in personal luxury goods and the
25:10
strongest performer to through 2030, 4
25:13
to 7% a year, because it sits at the
25:16
intersection of emotional meaning and
25:18
enduring value. And of course, as in all
25:20
categories, not all brands are going to
25:22
grow. Some grow Some Some brands are
25:25
going to outgrow others.
25:27
So,
25:29
if we basically look at all of this
25:31
together,
25:32
um
25:33
the categories that will profit are
25:35
investment categories. Investment goods
25:38
that do retain value, but also
25:40
investments in oneself.
25:43
Wealth is flowing towards experiences,
25:46
towards well-being, and towards objects
25:49
that endure.
25:50
So, let me draw the conclusion
25:52
because everything in this episodes
25:54
points to one place.
25:57
The market is in the middle of a
25:59
structural shift. Some brands
26:01
anticipated the shift and prepared
26:03
early.
26:04
They sharpened their value equation.
26:06
They elevated their experiences, and
26:09
they built desirability with discipline,
26:11
and they're growing significantly right
26:14
now.
26:15
Even through contraction.
26:18
Many brands across categories, however,
26:21
are doing more
26:22
of the same.
26:24
And in a fundamentally different market
26:26
setting, more of the same will not close
26:28
the gap between what clients expect and
26:31
what they perceive they receive.
26:33
The geopolitical shock is a catalyst.
26:37
The structural challenges, as we
26:39
discussed, are the cause, and they need
26:41
to be addressed. Only the brands that
26:44
address them will be growing in the
26:46
future.
26:47
And that's exactly why I called the
26:50
report The Cost of waiting.
26:53
Waiting for better market conditions
26:55
means the necessary actions have not
26:57
been taken. And the gap between the
27:00
brands that act and the brands that
27:03
hesitate widens every single quarter.
27:07
So, what does the work look like? Our
27:10
report is direct about this, and I will
27:12
close with it.
27:13
For brands carrying fundamentals
27:16
deficits, there is no tactical escape.
27:19
Spending more on marketing simply
27:20
amplifies a broken proposition. It does
27:23
not fix it. Rotating creative directors,
27:26
for example, without getting the brand
27:28
story straight, often actually
27:30
accelerates the erosion.
27:32
The only durable path is the
27:34
foundational work across three fronts.
27:37
First, clarify the point of view your
27:41
brand can authentically own. The
27:43
differentiated story
27:45
no competitor can claim,
27:47
and it has to be able to be defended
27:50
operationally and not just declared.
27:53
And you can see this requires
27:55
significant work.
27:57
Second, you have to build the systems
27:59
that deliver a consistent and
28:01
distinctive client experience, so that
28:03
clients really feel valued through your
28:06
system and never through the lack of
28:08
meaning
28:09
um of sorry, the lack of meeting the
28:11
right person in the right day.
28:14
And you know, I just also come back from
28:16
a series of
28:18
um a experience evaluations in several
28:20
countries, and I can tell you that
28:23
almost every time we evaluate client
28:25
experiences in the luxury space, we see
28:27
significant upside potential.
28:29
Significant upside potential absolute
28:31
terms, but also simply in creating
28:33
distinct experience markers that brands
28:37
can own.
28:38
And third, you have to commit to
28:41
delivering perceived value that exceeds
28:43
the price before you can raise prices.
28:46
Because creating value that merely meets
28:49
expectations is
28:51
survival. Creating value that
28:53
significantly exceeds expectation, this
28:56
is what earns you the premium.
28:58
If you cannot make a client dream,
29:01
you will not make them pay.
29:04
That work will take years. And this is
29:07
exactly why beginning now is existential
29:09
rather than optional. The brands that
29:12
start now will grow through the
29:14
recovery. The brands that will wait will
29:16
discover that each year of delay widens
29:19
the gap with the brands that acted.
29:23
And in the next episodes that I will
29:26
record, um I will do a uh closer look
29:29
into different categories. Um we'll dive
29:32
even deeper into the report. Um and I'm
29:35
pretty sure you're going to find the
29:37
insights incredibly helpful. We will
29:39
link the report in the show notes, so
29:41
you will find them there. And um you
29:43
know, my ask is if you find this report
29:46
and also the podcast useful, please
29:47
subscribe, share, and also explore our
29:51
Substack. One Substack is Daniel Langer,
29:54
my own Substack, and then we have a
29:56
Substack Akitainu Intelligence. Um you
29:58
will find them in the show notes. And in
30:00
both Substack, we will explore luxury in
30:04
a kind of much deeper fashion with
30:05
additional analysis, um and giving you
30:09
much more inf- information and insights
30:12
to navigate the change, the massive
30:14
change that you see in the market, um
30:16
in a much more profitable and
30:18
sustainable fashion. So, thank you for
30:20
listening, and remember, in times like
30:22
these, complacency was never a strategy.
30:26
I will see you on the next episode of
30:29
The Future of Luxury Podcast.
30:31
>> [music]
30:32
>> If this changed how you think, share it
30:35
with someone who needs to hear it.
30:36
[music]
30:37
Bookmark this show, new episodes
30:39
regularly, The Future of Luxury [music]
30:41
with Dr. Daniel Langer.
30:47
>> Relax.
30:48
Pretty easy.