Portfolio Entry 1: Characteristics of Luxury Brands

Part 1: Characteristics that differentiate luxury brands from other types of brands

The distinguishing factor about luxury brands as opposed to ordinary brands is that they derive their value from symbolism, scarcity, tradition, craftsmanship, and emotion rather than just product quality (Wang, 2022). Ordinary brands tend to compete on the basis of affordability and ease of access, whereas luxury brands rely on selectiveness and the ability to create distance. Luxury brands may lose their exclusiveness and symbolism if they become overly accessible (Kapferer and Bastien, 2009). The marketing strategy for luxury brands differs significantly from the normal marketing strategy in which growth means expanded distribution and sales volumes.

One of the most important features of luxury brands is that of symbolism. The luxury products carry with them a sense of identity, status, taste, and aspiration. Customers purchase these luxury products for much more than just practicality (Hemonnet-Goujot and Valette-Florence, 2021). The consumers buy into what the products symbolize to them. The value associated with luxury products comes as a result of their being unique, good quality, enjoyable hedonically, and valuable as well as having self-expressive qualities (Vigneron and Johnson, 2004). This makes luxury brands different from premium brands because while premium brands have quality they lack meaning.

The heritage factor is another significant trait. The luxury brand houses may employ heritage, founder legacy, design archives, national identity, and traditional methods in order to establish authenticity. Heritage contributes to the legitimacy of the brand since it implies that the brand has been able to build its reputation through time (Goldstein and Carpenter, 2021). Authenticity among the luxury brands is highly linked to continuity, craftsmanship, and the dedication to traditional production qualities (Beverland, 2004). Therefore, luxury brands tend to emphasize their year of foundation, original workshop, and iconic product lines.

The concept of craftsmanship is also vital. In many cases, luxury products stress craftsmanship because of the importance of skilled labor, scarce resources, handcrafting, and elaborate manufacturing techniques. Craftsmanship justifies high prices (Ko, Costello and Taylor, 2019). However, it also serves as a symbol. It enables customers to regard a luxury product as something that took time and effort to create through the application of skills.

In addition, scarcity and exclusivity are important components of luxury branding. The luxury brand creates value through the practice of producing its goods on limited scale, using selective distribution channels, setting high prices, and maintaining waiting lists for products. Scarce items appear more desirable due to their unattainability (Morhart, Wilcox and Czellar, 2020). However, scarcity should be substantiated; otherwise, it can have the negative effect on the perception of the luxury brand.

Moreover, luxury brands provide customers with an experiential brand experience. This is because in addition to selling products, luxury brands sell a world of meanings as well. Design, service, packaging, identity, customer care, and communication play key roles in making this happen. The brand value of a luxury brand is dependent on achieving the delicate balance between growth and exclusivity, where quick growth means quick degradation of its prestige (Atwal and Williams, 2017).

Part 2: Hermès as a luxury brand case study

One such luxury brand whose characteristics are demonstrated well is Hermès. The company was founded in 1837 and still develops its brand based on heritage, craftsmanship, rarity, and enduring value. In developing its brand identity, Hermès relies on six generations of craftsmen and emphasizes its connection with craftsmanship, tradition, and the evolving lifestyle of the customer (Chen, 2023). By emphasizing this historical continuity, the luxury brand earns its authenticity as the brand does not represent a fleeting fashion but rather a craftsman’s house.

Hermès heritage plays an essential role in defining its brand identity. Even though today the brand operates in a much broader market and produces handbags, scarves, ready-to-wear clothes, wristwatches, jewelry, perfume, and interior items, the brand history in terms of its connection to leather goods and horse riding culture still defines its corporate identity. Such heritage helps Hermès to be seen as a luxury brand creating value through culture and history, but not through innovations (An, 2025).

The final distinctive element that is associated with the Hermès brand is craftsmanship. It is important to emphasize that the concept of craftsmanship plays a crucial role in the formation of the company’s identity and the development of its corporate image. Products of the company are not associated with mass production of clothing. On the contrary, they are viewed as the result of an intricate process involving expert knowledge, skillful material selection and human labor (Wang, 2021).

Another point where Hermès shows its superiority is the aspects of exclusivity and scarcity. The most famous handbags from this luxury brand include the Birkin and the Kelly bags, which are renowned for being exclusive and desirable. This brand does not use discounting strategies and too much logo placement, and it is accessible neither on sale nor through massive retail stores (Peng, 2025).

Another factor which underlines the power of the model is the successful performance of the brand in recent years. According to Hermès’ latest annual figures, their sales total around €16 billion in 2025. Such success is possible despite difficulties in the luxury sector, and indicates the commercial success of its luxury positioning (Hermés, 2016). Unlike other luxury brands, which may struggle due to overexposure or low perception of value, Hermès enjoys sustained success.

In conclusion, the case study of Hermès helps demonstrate the distinguishing features of luxury brands compared to other kinds of brands. The value of the luxury brand lies in the interplay of heritage, craftsmanship, rarity, symbolic meaning, and experientiality. It proves that luxury should not be equated simply with expensive things because only those become luxurious which acquire cultural significance and desirability and become hard to attain.

Reference list

An, Y. (2025). Hermes Multi-sensory Brand Identity Design Study. Advances in economics, business and management research/Advances in Economics, Business and Management Research, [online] pp.642–651. doi:https://doi.org/10.2991/978-94-6463-706-9_58.

Atwal, G. and Williams, A. (2017). Luxury Brand Marketing – The Experience Is Everything! Advances in Luxury Brand Management, [online] 16, pp.43–57. doi:https://doi.org/10.1007/978-3-319-51127-6_3.

Beverland, M. (2004). Uncovering ‘theories‐in‐use’: building luxury wine brands. European Journal of Marketing, 38(3/4), pp.446–466. doi:https://doi.org/10.1108/03090560410518648.

Chen, Y. (2023). Why Hermès is the Top Luxury Brand. Interdisciplinary Humanities and Communication Studies, [online] 1(1). doi:https://doi.org/10.61173/3f08j023.

Goldstein, G.A. and Carpenter, G.S. (2021). Legitimately luxurious: Creating authentic luxury brands. Business Horizons, 65(5). doi:https://doi.org/10.1016/j.bushor.2021.09.002.

Hemonnet-Goujot, A. and Valette-Florence, P. (2021). ‘All you need is love’ from product design value perception to luxury brand love: An integrated framework. Journal of Business Research, 139. doi:https://doi.org/10.1016/j.jbusres.2021.10.066.

Hermés (2016). Revenue exceeded the €16 billion threshold and operating income up 7%. Hermés.

Kapferer, J.-N. and Bastien, V. (2009). The luxury strategy : break the rules of marketing to build luxury brands. London: Kogan Page.

Ko, E., Costello, J.P. and Taylor, C.R. (2019). What is a Luxury Brand? A New Definition and Review of the Literature. Journal of Business Research, [online] 99(1), pp.405–413. doi:https://doi.org/10.1016/j.jbusres.2017.08.023.

Morhart, F., Wilcox, K. and Czellar, S. (2020). Research Handbook on Luxury Branding. Edward Elgar Publishing. doi:https://doi.org/10.4337/9781786436351.

Peng, H.-P. (2025). Classic Brands and Global Culture: A Symbolic Shift Toward Sustainability Inspired by Barthes. Springer Proceedings in Business and Economics, pp.269–282. doi:https://doi.org/10.1007/978-3-031-99481-4_20.

Vigneron, F. and Johnson, L.W. (2004). Measuring Perceptions of Brand Luxury. Journal of Brand Management, [online] 11(6), pp.484–506. doi:https://doi.org/10.1057/palgrave.bm.2540194.

Wang, Y. (2021). Analysis on the Marketing Strategy of Hermes. [online] www.atlantis-press.com. doi:https://doi.org/10.2991/aebmr.k.210601.045.

Wang, Y. (2022). A Conceptual Framework of Contemporary Luxury Consumption. International Journal of Research in Marketing, [online] 39(3), pp.788–803. doi:https://doi.org/10.1016/j.ijresmar.2021.10.010.

Portfolio Entry 2: Luxury Brand Storytelling

Part 1: Processes and elements of brand storytelling in building luxury brands

Storytelling in luxury brand management refers to the act of transforming brands into stories with both cultural and emotional significance. For a luxury brand, this practice is important because the creation of value does not only happen from product design, high quality, or high price. Rather, it also results from such aspects as heritage, rarity, craftsmanship, aspiration, and symbolism. The ability to create a story makes a brand desirable and allows it to maintain prestige (Teixeira, Lima and Baqué, 2026).

Luxury brand equity benefits from storytelling since stories facilitate the connection between brand meanings and individual consumer identities and memories (Escalas, 2004). This is especially significant because the purchase of luxury goods is often an emotional experience. Buying a dress, a perfume or a bag by a couturier does not just mean purchasing something practical but also a signifier of elegance, refinement, prestige, belongingness and ambition.

The concept that could be considered useful when examining luxury narratives can be the structure of the message, conflict, characters, and plot (Lundqvist et al., 2013). First, a message reflects the primary concept that the company wants to communicate to the audience. It can involve such ideas as elegance, creativity, heritage, or excellence. Conflict helps create tension within the story and make it more appealing (Woodside, 2010). In the case of luxury, such conflict may include the contrast between tradition and innovation, exclusivity and digitization, or development and rarity. Finally, characters help give a deeper sense to the story by representing founders, artisans, creative directors, brand ambassadors, and other people.

Heritage is another powerful element of luxury narrative. The luxury brand may refer to a founding date, historic designs, original boutiques, cultural heritage and other historical markers in order to lend credibility to itself. Longevity of a company lends it credibility, since it implies that the company’s good reputation was acquired throughout many years of work. Authentic luxury is closely linked with such concepts as continuity, craftsmanship and production quality (Urde, Greyser and Balmer, 2007). But heritage cannot be stagnant. Otherwise, if the company refers back to its history and does not connect it with modern-day consumer, it may sound irrelevant.

The concept of craftsmanship plays an important role in the context of luxury narratives. Luxury marketers commonly highlight the role of ateliers, artisans, and rare raw materials in their production process. These elements are used to develop the story around time, skill, and human involvement (Roberts, 2021). Apart from creating justification for the high cost of luxury products, craftsmanship can generate emotion as consumers see these products as the results of patient work and craftsmanship. Craftsmanship, thus, turns into both a product feature and a tool for creating a narrative around luxury goods (Biliaminu Rokeeb, Dora and Owolabi, 2025).

One other component that is essential in telling stories in luxury is coherence. Consumers who are looking for luxury brands want to be assured that the story being told about the brand is coherent with its history, its product offerings, the shopping environment it operates in and its communications strategy (Biliaminu Rokeeb, Dora and Owolabi, 2025). If a luxury brand is telling stories about rare and sophisticated luxury, but uses pushy communication techniques to tell this story, it will create some degree of disconnect and make it difficult for consumers to believe in its story. Additionally, if a brand markets itself as a brand which offers craftsmanship, but makes very little mention of materiality, workshops and production expertise, then the story will seem decorative in nature (Klaus Fog, Budtz and Baris Yakaboylu, 2005).

Myth and dream value are key components of luxury storytelling as well. Brands become iconic by creating values beyond the utility of products. These values could involve French elegance, Italian craft, British heritage or a revolt against conformity (Supervisor et al., 2017). Dream value should be preserved by luxury brands because over-accessibility could diminish their desirability. The use of storytelling thus contributes to preserving the emotional distance from products. Consumers are not only urged to purchase a product. They are asked to join its universe (Kapferer and Bastien, 2009).

Consistency through the various touch points is another very important aspect. Luxury storytelling should be apparent in advertisements, boutiques, product packaging, fashion shows, social media, exhibitions, customer services, and post-purchase activities. If the story is strong in the advertisements but not in the retailing aspect, the meanings associated with the brand become less credible (Balmer, 2001). Luxury customers will expect that the experience will be consistent and managed well by the company. This explains why storytelling is not supposed to be viewed as communication alone.

Nevertheless, luxury storytelling can have certain disadvantages. In case the brand talks about heritage, sustainability or craftsmanship without being able to prove it by facts, the whole story will sound like a fiction. The brand runs a risk of becoming too close to mass fashion brands if its marketing campaign heavily relies on celebrities or influencers. The rise of digital media creates additional problems. It allows brands to target young audience by creating short movies or presenting collections during fashion shows and giving insights into backstage of luxury fashion industry (Ko, Costello and Taylor, 2019). However, it also destroys the aura by making the brand overly visible.

Part 2: Dior storytelling analysis using message, conflict, characters and plot

An outstanding case for the development of luxury brand stories is the one of Dior, since the essence of this brand identity consists of founder heritage, elegance associated with Paris, haute couture and the role of the New Look. The story of Dior starts in 1947 when Christian Dior presented his first collection in his home, at 30 Avenue Montaigne. The New Look represented elegance in post-war times. Therefore, Dior has an excellent story of its birth: it is not just a fashion house, but a House which invented elegance (Holt, 2004).

In terms of using the message, conflict, characters, and plot structure, Dior’s core message is that of elegance. The Dior message encompasses Parisian elegance, femininity, beauty, excellent couture, and emotional grace. These messages span across areas such as fashion, perfume, beauty, jewelry, exhibitions, and even in-store experiences (Palmer, 2019). Dior’s story goes beyond product benefits; it’s about creating an entire environment filled with flowers, couture workshops, elegance in architecture, artistic fantasy, and elegant silhouettes. This demonstrates the luxury concept as Dior sells emotions and not just products (Donzé and Wubs, 2019).

The conflict in the story-telling of Dior lies in preserving its heritage while staying relevant for the modern-day consumers. This means that Dior needs to not only stay true to the essence of Christian Dior but to also remain relevant for the youth generation that connects to luxury through social media and fashion shows, which makes the conflict essential because today’s luxury consumers have become much more demanding regarding the value of the product (Crane, 2002). Thus, the story-telling of Dior needs to go beyond mere beauty to evoke something deeper within the consumer.

The characters in this case are the key players in Dior’s narrative. Christian Dior himself plays the role of a visionary founder, giving Dior a sense of history and emotion. The creative directors are the intermediaries between the House codes and the brand itself; this gives the brand an opportunity to refresh itself without breaking its history (Chevalier and Mazzalovo, 2020). Artisans make up another key character group because artisans stand for savoir faire – human knowledge and labor. This is important for communicating about luxury as a cultural experience, not just an end result.

Plot of Dior commences from the New Look of 1947 and goes on to be developed through many years of innovation. Dior constantly revisits themes like the Bar jacket, flowers, fashion silhouettes, Avenue Montaigne 30, Parisian elegance among others. All this is done while Dior continuously evolves by bringing into it new concepts that are introduced by different creative directors, international marketing campaigns, exhibitions and digital platforms. Plot of Dior is powerful because of its combination of both continuity and evolution (Dior, 2026).

There are several strengths in the story of Dior. First of all, the concept of the New Look provides Dior with an interesting legend as well as a unique role in the history of fashion design. Second, visual codes are important to the Dior story. Such codes as flowers, silhouettes of couture, ateliers, and elegant architecture make the Dior brand recognizable for products of different kinds. Third, savoir faire, ateliers, and manufacturing processes serve as a basis for authenticity of Dior stories. Finally, there is emotional appeal connected with such concepts as dream, beauty, and elegance (Ma, 2024).

Another key strength of Dior is that it succeeds in telling a consistent story over various product categories. In such a way, fashion, fragrances, beauty, jewelry and exhibitions use codes that speak about femininity, elegance, French sophistication and couture history. Such consistency of storytelling is crucial for a luxury brand because it enables avoiding diluting the brand message while entering various categories of products. For instance, the fragrance campaign continues to tell the same story about beauty, flowers and elegance, and couture storytelling still stresses mastery and the magic of atelier (Okonkwo, 2007).

The exhibitions and heritage spaces created by Dior further reinforce this narrative structure. Through presenting their archives and couture legacy and codes as cultural experiences, Dior offers their consumers an opportunity to experience the brand as a work of art and a piece of history rather than simply a fashion brand that offers a product. This contributes greatly to luxury brand equity by allowing Dior to be considered beyond merely consumption. This means that the narrative created by Dior can be seen in multiple ways – as a product, an emotional experience, as historical heritage and culturally prestigious (Sana, 2024).

Nonetheless, there are flaws in storytelling for Dior. First, it is possible to over-rely on heritage stories. While the New Look, Dior’s founder, and Parisian elegance are important, using them without giving them new meanings might make them redundant. While younger generations appreciate heritage, they also value new meanings that relate to their lives . Second, Dior faces a challenge of making its products exclusive in the digital age. Although global campaigns and ambassadors help to become more culturally relevant, it is easy to get caught up with too much visibility, which makes things less mysterious (Ko, Costello and Taylor, 2019). Should celebrities overshadow craftsmanship and storylines, the latter will become less meaningful. Finally, it appears that sustainability does not form an essential part of Dior’s storytelling yet. However, for any modern luxury brand, responsibility relates to longevity, materials, and preservation (Kapferer and Michaut-Denizeau, 2014).

Dior could enhance its story by taking several steps. First, it could introduce more targeted heritage storytelling that would be based around 30 Avenue Montaigne, the New Look and ateliers. Interactive rooms or virtual couture sessions would educate younger customers about the House’s heritage, but would not make it appear overly marketed. Secondly, Dior could involve artisans into its brand storytelling more, for example, by producing short films and diaries about them and by focusing on craftsmanship in general. This approach could increase value justification and minimize reliance on celebrity visuals. Thirdly, the brand could link sustainability to timelessness, by telling stories about the life of a product. Dior product could be perceived not as something to buy, but as an object to treasure and protect. Finally, local culture storytelling should be handled in a more sophisticated way when used globally.

Such advice will also assist the company in addressing broader changes in luxury consumers’ behavior. Modern consumers are demanding more meaning, openness, and cultural relevance from luxury brands than just prestige. Selective digital heritage tours can foster emotional attachment and preserve the exclusivity of the product (Kapferer, 2015). Artisan-led stories can add to the authenticity of their products and help justify the premium prices. The story on sustainability will enable Dior to be responsible without compromising its ability to sell dreams to its customers. Localized cultural stories will make the brand more culturally relevant without betraying its Parisian origins.

In conclusion, the example of Dior illustrates the way how storytelling can help to develop the brand by means of heritage, emotions, craftsmanship, and cultural myths. By considering the analysis of the message, conflict, characters, and plot development, it becomes evident that Dior has a strong message of elegance, a high level of conflict between heritage and contemporary life, characters, and an interesting plot started with the invention of the New Look. The effectiveness of Dior’s storytelling lies in visual uniformity, historical truth, and emotions. However, Dior should continue the renewal of its narrative.

Reference list

Balmer, J.M.T. (2001). Corporate identity, corporate branding and corporate marketing ‐ Seeing through the fog. European Journal of Marketing, 35(3/4), pp.248–291. doi:https://doi.org/10.1108/03090560110694763.

Biliaminu Rokeeb, Dora, S. and Owolabi, O. (2025). Luxury Brand Storytelling and Its Influence on Consumer Perception. [online] ResearchGate. Available at: https://www.researchgate.net/publication/404534736_Luxury_Brand_Storytelling_and_Its_Influence_on_Consumer_Perception [Accessed 21 May 2026].

Chevalier, M. and Mazzalovo, G. (2020). Luxury Brand Management. Wiley Online Library. [online] doi:https://doi.org/10.1002/9781119199168.

Crane, D. (2002). Fashion and Its Social Agendas: Class, Gender, and Identity in Clothing. Contemporary Sociology, 31(3), p.303. doi:https://doi.org/10.2307/3089682.

Dior (2026). The Story of 30 Montaigne. [online] Available at: https://www.dior.com/en_vn/fashion/30-montaigne/the-story-of-30-montaigne [Accessed 21 May 2026].

Donzé, P.-Y. and Wubs, B. (2019). Storytelling and the making of a global luxury fashion brand: Christian Dior. International Journal of Fashion Studies, 6(1), pp.83–102. doi:https://doi.org/10.1386/infs.6.1.83_1.

Escalas, J.E. (2004). Narrative Processing: Building Consumer Connections to Brands. Journal of Consumer Psychology, 14(1-2), pp.168–180. doi:https://doi.org/10.1207/s15327663jcp1401&2_19.

Holt, D.B. (2004). How Brands Become Icons: the Principles of Cultural Branding. Boston: Harvard Business School Press.

Kapferer, J.-N. (2015). Kapferer on luxury : how luxury brands can grow yet remain rare. Kogan Page Stylus.

Kapferer, J.-N. and Bastien, V. (2009). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. [online] ResearchGate. Available at: https://www.researchgate.net/publication/281251957_The_Luxury_Strategy_Break_the_Rules_of_Marketing_to_Build_Luxury_Brands [Accessed 21 May 2026].

Kapferer, J.-N. and Michaut-Denizeau, A. (2014). Is Luxury Compatible with sustainability? Luxury Consumers’ Viewpoint. Journal of Brand Management, 21(1), pp.1–22. doi:https://doi.org/10.1057/bm.2013.19.

Klaus Fog, Budtz, C. and Baris Yakaboylu (2005). Storytelling : branding in practice. Berlin ; New York: Springer.

Ko, E., Costello, J.P. and Taylor, C.R. (2019). What is a Luxury Brand? A New Definition and Review of the Literature. Journal of Business Research, [online] 99(1), pp.405–413. doi:https://doi.org/10.1016/j.jbusres.2017.08.023.

Lundqvist, A., Liljander, V., Gummerus, J. and Van Riel, A. (2013). The Impact of Storytelling on the Consumer Brand experience: the Case of a firm-originated Story. Journal of Brand Management, 20(4), pp.283–297. doi:https://doi.org/10.1057/bm.2012.15.

Ma, J. (2024). Luxury Brands Success: Dior as an Example. Communications in humanities research, [online] 31(1), pp.51–55. doi:https://doi.org/10.54254/2753-7064/31/20231836.

Okonkwo, U. (2007). Luxury Fashion Branding. [online] London: Palgrave Macmillan UK. doi:https://doi.org/10.1007/978-0-230-59088-5.

Palmer, A. (2019). Dior: A New Look, A New Enterprise (1947-57). London: V&A Publishing.

Roberts, J. (2021). Luxury, Craft, Creativity, and Innovation. pp.150–172. doi:https://doi.org/10.1093/oxfordhb/9780190932220.013.10.

Sana, S. (2024). Luxury fashion has always been synonymous with more than just clothing—it’s about creating stories, experiences, and legacies that transcend time. Dior, one of the world’s most revered luxury houses, exemplifies this ethos through its strategic use of exhibitions, merging fashion with art, culture,. [online] Linkedin.com. Available at: https://www.linkedin.com/pulse/diors-strategic-use-exhibitions-blending-art-culture-luxury-sana-ipzhc/ [Accessed 21 May 2026].

Supervisor, P., Alberto, F., Co-Supervisor, P., Carlo, F., Candidate, S. and Rossoni, I. (2017). Department of Business and Management Master’s Degree in Management Chair of Luxury Management LUXURY STORYTELLING: FOUNDATION OF A GROWTH STRATEGY OR THING OF THE PAST? [online] Available at: https://tesi.luiss.it/23489/1/680151_ROSSONI_SARA_TESI%20Luxury%20-%20SARA%20ROSSONI.pdf [Accessed 21 May 2026].

Teixeira, S., Lima, A. and Baqué, S. (2026). Digital Storytelling as a Branding Strategy for Luxury Fashion Brands. Smart Innovation, Systems and Technologies, pp.323–346. doi:https://doi.org/10.1007/978-3-032-16284-7_21.

Urde, M., Greyser, S.A. and Balmer, J.M.T. (2007). Corporate brands with a heritage. Journal of Brand Management, [online] 15(1), pp.4–19. doi:https://doi.org/10.1057/palgrave.bm.2550106.

Woodside, A.G. (2010). Brand-consumer storytelling theory and research: Introduction to a Psychology & Marketing special issue. Psychology and Marketing, [online] 27(6), pp.531–540. doi:https://doi.org/10.1002/mar.20342.

Portfolio Entry 3: Luxury Brand Challenge and Opportunity

Part 1: Sustainability as a challenge and opportunity for luxury brands

Sustainability is one of the pressing issues within the sphere of luxury brand management since this concept both adds pressure to luxury brands and presents new opportunities for these organizations. The traditional perception of luxury involves such elements as rarity, handcraftsmanship, higher quality of the product, heritage, and longevity (Kapferer and Valette-Florence, 2016). Sustainability could be promoted by luxury items as these products traditionally are expected to last longer than other fashion items. At the same time, there are aspects associated with luxury brands which make sustainability quite problematic for these organizations (Kapferer and Michaut-Denizeau, 2014).

This has become increasingly important given how selective the luxury market has been becoming. Att this juncture, it is imperative for luxury brands to build their long-term value rather than rely only on raising their prices or short-lived appeal. This is so due to the increasing awareness among consumers regarding whether or not they are getting their money’s worth in terms of quality, innovation, accountability, and the brand’s worth (Chevalier and Mazzalovo, 2012).

Sustainability is hard for brands to embrace due to the contradiction between luxury’s reliance on mystery, aspiration, and distance, and the transparency required by sustainability. The luxury industry relies on emotion; hence, sustainable messaging may not resonate with this core element (Joy et al., 2012). Furthermore, messages that do not come off as honest may lead to accusations of greenwashing. Sustainable luxury should therefore be integrated within sourcing, materials, manufacturing, repairs, reselling, and storytelling processes, rather than being an external element (Hepner, 2025).

It is noted that the two concepts of sustainability and luxury could sometimes seem incompatible since sustainability is associated with moderation, whereas luxury with extravagance. The two notions can coexist when sustainability is concerned with durability, excellence, craftmanship and longevity (Joy et al., 2012). Luxury goods are very good for encouraging slow consumption since it is generally perceived that the luxury goods would have long-term value. In other words, a luxury product may serve as something to repair, preserve, sell and even inherit.

Sustainability offers another opportunity in the concept of circular luxury. The secondary market for luxury products is becoming more prevalent as people become more accepting of pre owned, authenticated luxury items as desirable and responsible purchases. For luxury brands, the resale process can enable sustainable practices while still protecting brand integrity by ensuring that products are authenticated and refurbished by the brand itself (Turunen and Leipämaa-Leskinen, 2015). In addition, digital product passports offer a new realm of opportunities with regards to material origins and authenticity among others.

In conclusion, sustainability is a threat to luxury brands due to the need for increased transparency and change in their operations. Nonetheless, sustainability also presents an opportunity for luxury brands to rethink and recreate what luxury means by focusing on factors such as quality, rarity, responsibility, durability, and culture.

Part 2: Creative and innovative solutions for sustaining and building luxury brand equity

In regard to luxury brands in particular, sustainability should be part of the luxury value proposition instead of being separated from it as a corporate message. First, sustainability can be positioned in terms of longevity and timelessness of ownership. This will convey that luxury brand products were created to last and to withstand repairs (Kapferer and Michaut-Denizeau, 2014) . In this case, sustainability will go well with the luxury branding message since it will link luxury products with quality construction, uniqueness and endurance. Second, such positioning will contribute to premium prices by helping customers view products as investments (Zhang, 2024).

The second solution will be in the form of developing official circular luxury services. Such services can encompass various processes such as repair services, restoration, authentication, resell service, buy-back programs, and archive renovation service (Turunen and Leipämaa-Leskinen, 2015). Official circular luxury services offer brands the opportunity to continue engaging with their customers even after the first transaction. The reason behind this is that uncontrolled resale presents numerous challenges, which may include counterfeiting concerns, pricing issues, and poor brand representation (Ko, Costello and Taylor, 2019).

A third approach to consider would be implementing the concept of digital product passports as an instrument for not only transparency but also storytelling. Product passports would feature information about material sources, artisan craft, care guidelines, repairability, and verification credentials (Psarommatis and May, 2026). It will enable consumers to better evaluate the product’s longevity. In terms of luxury products, it represents a more powerful option compared to sustainability certification.

The fourth suggestion involves bolstering the stories centered around artisans. The concept of sustainability should not be solely conveyed in terms of data and environmental goals. This is where luxury brands come in, as they will be able to add a meaning to the concept of sustainability by communicating the people, craftsmanship and heritage behind sustainable manufacturing processes (Kapferer and Michaut-Denizeau, 2014).

Luxury brands must, however, also prioritize innovation in terms of material that does not compromise on quality. If consumers think that the sustainable materials look inferior or that they do not have the same durability, they may be deterred from purchasing them. Innovation thus needs to cater to the standards of beauty, tactile qualities, and durability.

In summary, the connection between sustainability and luxury will help enhance luxury brand equity if it relates directly to the meaning of luxury. Services like circularity, use of digital product passports, story telling by artisans and responsible sourcing of materials can all be employed to ensure that luxury retains its exclusivity and helps build trust in the brand.

Effective management of a luxury brand involves balancing aspects of exclusivity and the meaning of the luxury brand itself. In all three portfolio pieces, that of Hermès, Dior, and the sustainability piece, it becomes clear that brand equity for a luxury brand does not simply involve an expensive product offering, but rather the interaction of heritage, craftsmanship, exclusivity, storytelling, and longevity. Hermès showcases how the value of luxury can be maintained through excellent craftsmanship and selective appeal. Dior shows the power of storytelling in turning heritage and codes into something meaningful. And sustainability showcases how modern luxury brands can maintain their credibility and authenticity by being socially and environmentally responsible.

Overall, successful luxury brands are able to retain the appeal of their symbolic dreams while maintaining relevancy to changing consumer tastes.

Reference list

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