More than 75% of customers in the US say that a brand’s logo is the most important identifier of a company. This is even more true for luxury brands as their logos are some of the most recognised symbols globally.
So, luxury brands should prominently display their logo, shouldn’t they? Our recent research suggests otherwise.
In 2023, fashion’s biggest influencers and brands took to the “quiet luxury” trend. This trend refers to a more low-key approach to luxury where people favour subtlety and quality over prominent brand display.
For visual reference, consider the billionaires featured in the popular HBO series, Succession. They opt for tailored, functional attire that is devoid of conspicuous logos and excessive brand names.
Succession has been influential in amplifying the quiet luxury trend. But the luxury market has been undergoing change for some years, partly as millennials and gen-Z become the main customers of luxury brands. These consumers demand that luxury brands are more sustainable and inclusive, contributing to the resurgence of quiet luxury.
The shift towards quiet luxury presents a dilemma for the luxury fashion sector. Some brands, such as Balenciaga, Burberry and Louis Vuitton, flaunt their logos conspicuously on almost every product. Other brands, including Hermes and Bottega Veneta, instead opt for muted prestige.
But what is the right strategy for luxury brands when it comes to displaying their logos? Our findings suggest that prominent logo displays often backfire, making brands seem inauthentic and less cool. This strategy turns fans of the brand away, potentially reducing its market share.
Prominent brand display
We found that prominent logo display discourages consumers both from buying items from luxury brands and from sharing images of these luxury items on social media.
These findings held true in three distinctly different cultural contexts – for customers in the UK, Turkey and China. On average, purchase intentions decreased by almost 19% and social media sharing reduced by 17% when logos were displayed prominently.
Many customers considered luxury items from brands that use big logos as not genuine or true to their roots. They also thought that prominent logo display reduced exclusivity, glamour and the brand’s sophistication. Our results show that UK customers’ perceptions of authenticity and coolness reduced by more than 10% when a luxury brand decided to use prominent logos.
Our study also uncovered another unique insight. In the past, research has shown that customers who are strongly connected to a luxury brand tend to defend the brand when it is rejected by social peers. However, we found that those same consumers react negatively when the brand uses loud displays.
Luxury brands are often used to signal social class, prestige and upward mobility. Buyers of luxury fashion thus seek to express their identities through these brands. But when logos are too prominent, they undermine the brand’s coolness and authenticity, diminishing the fan’s desired image of being genuine and original.
