Tariffs, Recession Risk, and Uncertainty: Interview with Professor Dr. Daniel Langer on How Luxury Brands Can Navigate Turbulent Times

Introduction:

Prof. Dr. Daniel Langer is one of the world’s foremost experts in luxury strategy, extreme value creation, and pricing strategies for luxury and lifestyle brands. As CEO of Équité, he advises many of the world’s leading luxury brands on strategy, storytelling, and leadership training. As the Executive Professor of Luxury Strategy at Pepperdine University and a professor of luxury NYU, his groundbreaking research in luxury psychology has deeply impacted the industry. Named a top-five global luxury key opinion leader, Prof. Langer is the author of several best-selling books on luxury management, keynote speaker, host of the Future of Luxury Podcast and a sought-after commentator in major media outlets such as The Wall Street Journal, The Economist, The Financial Times, and Forbes. His and his team’s services at Équité are in unprecedented demand as brands grapple with the looming crisis of trade wars, recession risks, and eroding consumer trust while they manage the shift to Generation Z. Recently, Prof. Langer and his team launched Équité Intelligence, a digital training community for companies and individuals designed to address the industry’s most pressing challenges.

 

Question: Prof. Dr. Langer, the luxury industry is facing significant challenges from trade wars to recession risks and declining consumer trust. What should brands focus on right now?

Prof. Dr. Daniel Langer: The luxury industry is indeed navigating one of its most turbulent periods in recent history. Over the past couple of years, we have seen unprecedented price hikes, some exceeding 50% or more. These have alienated consumers and led to a significant erosion of trust. Recent reports from Bain & Company indicate that nearly half of customers now perceive luxury brands as overpriced. This perception has been exacerbated by consumer reports of declining product quality and uninspired storytelling, particularly among younger consumers who feel disconnected from how many brands communicate with them. I have warned for the last five years that brands need to prepare for Gen Z, and today those brands who neglected this are struggling to stay relevant. It’s a perfect storm that explains why 2024 has been so challenging for many companies in the sector.

In times like these, simply increasing prices to offset tariffs or inflation without drastic and immediate additional measures is not a sustainable strategy, it will only further weaken brands that are already struggling to connect with their clients emotionally. Instead, brands need to focus on improving their perceived value, which requires a strategic recalibration of their approach to storytelling and customer engagement. The first step is conducting a brutally honest brand audit to identify vulnerabilities and opportunities for improvement.

 

Question: Why do you believe brand audits are so critical during a crisis?

Prof. Dr. Daniel Langer: A brand audit is an essential tool for understanding whether your brand’s core values resonate with your target audience and whether your messaging aligns with consumer expectations. It’s not just about diagnosing problems. When my team and I audit brands, we focus additionally on uncovering opportunities to create extreme value, the kind of value that inspires clients to choose your brand over others even during uncertain times.

When we conduct audits for luxury brands, we often find that internal assessments are too optimistic or lack objectivity. This is understandable. People within an organization naturally want to see their efforts in a positive light. However, audits that are not brutally honest lead to blind spots and misguided strategies. An external audit brings an unbiased perspective that can identify critical gaps in brand equity and storytelling while providing actionable insights for improvement.

Without this clarity, brands risk taking measures that fail to address the root causes of their challenges or even exacerbate them further. A comprehensive audit allows brands to recalibrate their strategies based on real-world insights rather than assumptions.

 

Question: You’ve mentioned storytelling as central to unlocking value in luxury. Why is this so important right now?

Prof. Dr. Daniel Langer: Storytelling is the single most important lever for creating perceived value in luxury because it connects emotionally with clients and inspires them to see your brand as extraordinary. Through more than a decade of quantitative research, I was able to show that the brand story is responsible for most of the perceived value for a luxury brand. Unfortunately, many brands fail to optimize their storytelling because they focus too much on product features rather than how their story resonates with clients’ aspirations and emotions.

Internal storytelling often becomes overly complex or fragmented. It tries to say too much instead of focusing on one singular point that truly matters to the client. Additionally, it tends to be product-centric rather than client-focused, which diminishes its emotional impact.  

In times of uncertainty like these, optimizing your brand story isn’t optional. To me it is a matter of survival. Brands must inspire their clients emotionally by crafting narratives that are simple yet powerful enough to evoke desire and aspiration.

 

Question: You’ve developed, published and presented extensively the 4E framework for luxury. How does it apply during crises?

Prof. Dr. Daniel Langer: The 4E framework, Emotion, Experience, Engagement, and Exclusivity, is designed to replace outdated and product-centric models like the 4Ps of marketing by focusing on what truly drives value in luxury: emotional connections, transformative experiences, meaningful engagement with clients, and maintaining scarcity through exclusivity. Most companies still follow too much the 4P approach and forget that it was develop in a different time (in the early 1960s) for a different reason (selling standardized mass-produced products to as many people as possible). Not only is this the opposite of luxury, but the 4P also put the client at the end of the value creation process, where the 4E place the client at the center and create an ecosystem of extreme value centered around them.  

During crises like trade wars or recessions, these pillars become even more critical because they differentiate your brand from competitors who may be struggling with similar challenges. For example: Emotion is about crafting stories that inspire desire. Experience involves creating immersive interactions that make clients feel special. Engagement means fostering ongoing dialogues with clients through personalized touchpoints. This is critical to create and retain loyalty and advocacy. Exclusivity ensures your brand remains aspirational by maintaining scarcity and making the client feel at the center of attention.

Brands that prioritize these elements will be better positioned to weather uncertainty while continuing to inspire their clients. You will only survive the current time if you can make clients feel valued.

 

Question: You’ve recently completed a global road tour delivering training programs for several luxury clients in different industries. How does training fit into this equation?

Prof. Dr. Daniel Langer: Training is one of the most transformative investments a brand can make during uncertain times because it equips teams with the skills they need to deliver extraordinary experiences tied to compelling narratives at every touchpoint.

During my recent road tour across Shanghai, Singapore, Tokyo, New Dehli, Paris, London, New York City, and other global luxury key cities, I worked with teams from various luxury categories on brand storytelling and point-of-sale capabilities and the results were remarkable. In just two days of intensive training sessions, I observed significant improvements in how teams understood their brand story and communicated it effectively with clients. The most important, we could see immediate commercial results coaching the teams after the training sessions. New clients were recruited, relationships improved, and the success of selling ultra-high priced limited edition skyrocketed. And these are just some of the immediate results. In each case, the trainings led to significant tangible financial results and dramatically increased the confidence level of selling luxury to high-net-worth and ultra-high-net-worth individuals.

Luxury clients expect more than products. They want meaningful experiences that inspire them emotionally. Therefore, optimizing the sales process is critical.

 

Question: How can brands ensure their training programs deliver lasting impact?

Prof. Dr. Daniel Langer: Effective training goes beyond surface-level techniques like repeating clients’ names or following scripts. It must instill a deep understanding of the psychology behind luxury purchases and how to emotionally connect with clients, so teams can authentically represent their brands in every interaction, and importantly advocate the brand story passionately.

This requires immersive workshops where participants engage directly with the brand story through role-playing exercises or simulations of real client interactions. Not just theoretical discussions but hands-on practice that builds confidence over time. When done right, training transforms teams into ambassadors who embody the brand story at every touchpoint. This is the difference between winning or losing in times of change.

 

Question: Younger generations are becoming increasingly influential in the market. How should brands adapt their strategies?

Prof. Dr. Daniel Langer: Generation Z demands authenticity and hyper-personalization from luxury brands—and they’re quick to disengage if they sense insincerity or superficiality.

Brands need to shift from product-centric approaches to client-centric ones by investing in digital innovations like virtual showrooms or AI-driven personalization tools while collaborating with culturally relevant influencers who align with their values. Sustainability is also critical. Not as a marketing gimmick but as an integral part of the brand story that reflects genuine commitment rather than token gestures. Younger consumers expect more than just products. They want brands that inspire them through meaningful experiences tied to creativity and purpose.

 

Question: Consumer trust has been eroded by price hikes and declining quality. How can brands rebuild it?

Prof. Dr. Daniel Langer: Rebuilding trust starts with working on the value creation system first. Brands need to make people care about what they do. Arbitrary price increases without clear justification alienate clients. Instead, brands should reinforce product quality through craftsmanship while demonstrating commitment to sustainability or ethical practices. And, as I stated before, they need to focus on inspiring through client-centric brand storytelling. I can’t stress this enough.

 

Question: Finally, what advice would you give luxury leaders navigating today’s uncertainties?

Prof. Dr. Daniel Langer: Luxury leaders must embrace change with agility while staying true to their brand essence. It’s not about reacting impulsively but strategically recalibrating based on real insights into what drives client loyalty.

Conducting external audits helps uncover vulnerabilities while refining storytelling ensures your message resonates emotionally with clients and investing in transformative training equips your teams with skills needed for delivering extraordinary experiences consistently. In times of crisis those who adapt strategically will emerge stronger and those who don’t risk irrelevance.