As consumers turn their backs on empty extravagance, Ellie Thorpe reveals why today’s winning brands are those that keep it real – and keep it meaningful
In a world where consumer preferences can change at the drop of a hat, the challenge is not only keeping up but ensuring your brand is the one product that is never thrown out of the basket.
This has become a much harder feat in a world where costs are rising sharply and geopolitical decisions, like Donald Trump’s tariffs, create widespread uncertainty. And societal trends also play a role in shaping day-to-day purchases.
The brands that do well are those that find space and innovate. For the alcohol and luxury goods sectors, traditional markers of success are giving way to more nuanced expressions of wellbeing and social identity.
A bottle of the (non-alcoholic) bubbly
Consumer attitudes toward alcohol are shifting in a big way. Drinking is on the decline, especially among younger generations who are putting health first. The idea of alcohol being the go-to for celebrations or socialising is being replaced by a more balanced, intentional approach towards indulgence.
It’s a change that has opened the door for low- and no-alcohol drinks to carve out space in the aisle that has long been dominated by beer, wine and spirits. That’s not to say big names like Corona or Guinness haven’t adapted, rolling out non-alcoholic versions under their well-respected labels to keep up with demand.
As the world’s most valuable beer brand, Corona hasn’t just relied on its iconic beach aesthetic or signature lime in the bottle. Instead, it’s leant into sustainability and authenticity, with products now brewed from 100 percent natural ingredients and a net-zero plastic pledge tapping into what today’s conscious consumers care about. Corona’s change in strategy signifies a bigger cultural shift where indulgence is about making thoughtful choices, like catering to the alcohol free and environmentally conscious consumers.
Finding luxury in simplicity
A similar revolution is taking place the luxury sector. Not only is spending decreasing, due to luxury brands increasing their prices, but there’s also been a shift towards sustainability. Second-hand reseller markets like Vinted have seen a rise in their value, and consumers are spending more money with brands that stand for something positive in society.
We’re a long way away from the end of flashy logos and over-the-top extravagance, but brands are going through a quiet transformation. Much like Corona, French-based, high-end fashion icon Hermès found a way to thrive amongst the uncertainty by leaning into its timeless heritage.
Despite the challenges in the luxury sector, Hermès continues to build strong brand value thanks to the craftmanship of its products and customers’ emotional connection with the brand.
Cartier, the fastest-growing luxury brand, is up thanks to its classic appeal and reputation as a safe investment. Then there’s Prada, which has strengthened its place in the industry by balancing its iconic legacy with fresh, exciting creative direction.
What’s clear is that today’s luxury buyers, especially millennials and Gen Z, are looking for more than just exclusivity. They want brands that reflect their values and stand for something meaningful.
Redefining the rules of engagement
Above all, every single brand needs to find its own unique way to stand out through meaningful difference. Practically, that means meeting emotional and functional needs of audiences. And it can be intrinsic, baked into the design of the brand or extrinsic where brands draw on associations from society.
It’s no longer just about keeping up; it’s about staying ahead by delivering experiences that genuinely resonate.
Ellie Thorpe is a Director at Kantar BrandZ
