Why it matters
Marketers, regardless of category, often fall into the trap of short-termism, pursuing immediate returns over brand-building, which protects brand equity and insulates them from price sensitivity. The fashion industry’s embrace of streetwear is a prime example of short-termism, demonstrating how near-term concerns can hurt long-term brand value.
- Luxury marketers shouldn’t rely on mimicking the culturally-relevant – which today is streetwear – but develop long-term cultural relevance that is not dependent on a fashion trend.
- Luxury brands have confused the strategy of branding with the tactic of marketing, and are paying the price in the dilution of their brand value.
- Brands need to remember that the way to rise above the clutter is to express the unique essence tied to their brand value. This can attract both new and existing customers in culturally-relevant ways.