Brand Naming Strategy
Insights
The Pursuit of Meaningful Innovation
Innovation. A popular buzzword. But, in the luxury sector, even the most iconic brands can get it wrong. Too safe? You risk being stale. Too trend-driven? You risk losing your identity. In 2025, this balance will become more crucial than ever.
In the pursuit of innovation, we’ve identified four principles for luxury brands to follow as they navigate the future of innovation in a rapidly evolving landscape.
Being timeless was once easier—heritage, quality, and craftsmanship were the primary markers of a luxury brand. But, as consumer preferences shift, technology advances, and competition is fierce, the traditional definitions of luxury have changed. To stay relevant, brands must look forward.Being timeless was once easier—heritage, quality, and craftsmanship were the primary markers of a luxury brand. But, as consumer preferences shift, technology advances, and competition is fierce, the traditional definitions of luxury have changed. To stay relevant, brands must look forward.
[● 28th of September 2024
● 6 minute read.]
Table of content
Luxury Innovation 2025: Key Trends for the Future of Premium Brands
In 2025, luxury brands face an increasingly crowded marketplace. Not only are legacy houses like Gucci and Louis Vuitton maintaining their positions, but athletic and streetwear brands such as Off-White, Nike, and Adidas are also challenging the status quo. What defines luxury is no longer gatekept by a few, but dictated by consumers who value sustainability, ethics, and experiences.
Achieving longevity and staying at the forefront of consumers’ minds now requires constant, meaningful innovation. And not just any innovation—brands need to appeal to new audiences, tap into evolving attitudes, experiment, harness technology, and do all this while pushing society forward.
Sustainability will no longer be an afterthought in 2025. It will be a core part of every luxury brand's identity."
[ Marie-Claire Daveu - Kering ]
The Two Extremes of Innovation: Avoiding Gimmicks
Innovation in the luxury space can be a double-edged sword. On one end, we see slow, incremental innovations that are low-risk but ultimately unremarkable. On the other, we have flashy, trend-chasing gimmicks that burn bright for a moment but quickly fade.
The metaverse is a great example of the latter. Many luxury brands have rushed to invest, creating digital goods and experiences rather capitalise on the hype. But, without a clear long-term strategy or defined value, these efforts can feel empty and fail to make a meaningful impact on the business or customer.
Instead, luxury brands in 2025 will need to strike a balance between risk and tradition, steering away from the extremes and focusing on innovation that aligns with their core values and long-term vision.
"Chasing trends for the sake of novelty is a surefire way to lose brand equity. Real innovation needs a long-term view."
[ François-Henri Pinault, Kering ]
Debunking Innovation Myths:
What Luxury Brands Should Avoid in 2025
Myth #1: Innovation Means Understanding the Ultra-High-Net-Worth Individual
Too often, luxury brands treat the ultra-high-net-worth individual (UHNWI) as a monolithic group. But the truth is, this demographic is just as varied in their preferences, behaviours, and motivations as any other. In 2025, brands must move beyond generic personas and develop a true empathy with their audiences, digging deeper into the unique experiences of their customers.
"We need to move away from viewing UHNWI as a single segment. Personalisation and understanding the customer journey will drive luxury's future."
Myth #2: Innovation Is About Dominating Your Product Category
Rather than focusing solely on being the best in a specific vertical, luxury brands should think more holistically about their brand and competencies. Take Dyson, for example. They didn’t limit themselves to vacuums but chose to expand into haircare and air technology by focusing on their core competency—creating efficient, design-led solutions.
“Innovation must transcend products. It should be embedded in how a brand operates and interacts with the world.”
Myth #3: New Products Equal Innovation
Innovation is not just about inventing new products. Meaningful innovation occurs across the entire customer journey. In 2025, luxury brands will find opportunities to elevate customer experiences at every touchpoint, from in-store interactions to digital services.
For instance, brands like Farfetch are already exploring Stores of the Future using augmented reality (AR) and data to personalise the in-store experience. In the years ahead, this trend will only accelerate.
“The future of luxury retail will focus less on products and more on experiences that engage the senses and emotions.”
– José Neves, Farfetch.
Myth #4: Removing Friction Enhances the Customer Experience
Luxury is not about convenience—it’s about creating a sense of exclusivity and craftsmanship. By 2025, expect luxury brands to embrace “healthy friction” — moments in the customer journey that slow things down to tell a story or build anticipation. Whether it’s the unboxing of a product or the carefully curated menu at a restaurant, these moments create lasting emotional connections.
“Luxury is about emotion and anticipation. Creating friction, when done right, adds to the magic of the experience.”
© FarFetch
The Future of Luxury Branding in 2025: Innovation, Sustainability, and Digital Evolution
As we look towards 2025, it’s clear that innovation in luxury branding will require more than just technological investments. To remain competitive, luxury brands must:
-Develop a deep empathy with consumers, understanding their unique desires and experiences.
-Innovate holistically, focusing on brand and competencies rather than narrow product categories.
-Enhance the entire customer journey, from digital experiences to in-store interactions.
-Embrace sustainable practices, as consumers increasingly demand transparency and ethics from their luxury purchases.
At Blank Street Studio, we help luxury brands navigate this complex landscape. From harnessing the latest technology to refining your brand identity, our team provides the strategic insight necessary to innovate meaningfully in 2025 and beyond.
For more insights into the future of luxury, check out our articles on The State of Luxury and Brand Naming Strategy. You can also explore our services to learn how we can elevate your brand in the digital age.
Published by BSS Team
Blank Street Studio a Munich & Stockholm-based Brand & Digital Experience Design Agency delivering second-to-none experiences for forward-thinking luxury brands with something to say.
Innovation
Branding
digital strategy
BLANK STREET STUDIO