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Insight of the Day: Luxury Brand Reputations Fall, Just When Strong Reputations Matter Most


  • Luxury brands' reputations are declining, even as overall brand reputations improve.

  • This decline comes at a challenging time for the luxury market, with sales slowing down, especially in the Americas.

  • Consumers are placing greater emphasis on corporate citizenship, ethics, and social responsibility.

  • Luxury brands need to focus on building trust and demonstrating their commitment to values beyond just the products they sell.

Key Takeaway:

Luxury brands need to address their declining reputation by focusing on building trust, demonstrating good corporate citizenship, and connecting with consumers on a deeper level beyond just aspiration and exclusivity.


  • Consumers are increasingly demanding more from brands in terms of ethics, sustainability, and social impact.

  • The traditional Western luxury model may not resonate as strongly with consumers in Asia, requiring brands to adapt their messaging and strategies.

  • Employee satisfaction and engagement are crucial for building a strong brand reputation.


Luxury brands can restore their reputational luster by focusing on:

  • Building Trust: Demonstrate transparency, ethical practices, and a commitment to social responsibility.

  • Cultural Sensitivity: Tailor messaging and strategies to different markets and cultures.

  • Beyond Products: Emphasize brand values and purpose beyond just the products and services offered.

  • Employee Engagement: Invest in creating a positive and rewarding corporate culture that fosters employee loyalty and advocacy.

Implications for Brands:

  • Re-evaluate Marketing Strategies: Shift focus from pure aspiration to building genuine connections with consumers based on shared values.

  • Prioritize Social Responsibility: Invest in sustainable practices and social initiatives that resonate with consumers.

  • Empower Employees: Create a positive workplace culture that motivates employees and fosters a sense of pride in the brand.

  • Measure and Track Reputation: Regularly monitor brand reputation and adjust strategies based on consumer feedback and data.

By addressing these areas, luxury brands can not only improve their reputation but also strengthen their long-term success in a changing market landscape.


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