The role of failure and reinvention in building brand loyalty

: luxury fashion industry

Abstract

The importance of stories about failure and reinvention in luxury fashion brands challenges the traditional notions of perfection, offering a new way of understanding how consumer loyalty is built in this exclusive industry. Traditionally, luxury brands emphasized narratives of perfection and exclusivity, however, this study explores whether incorporating stories of resilience and authenticity will create stronger emotional connections with consumers. It investigates whether sharing moments of overcoming challenges, such as reputational crises or public scandals (e.g., social media controversies), increases trust and brand loyalty or whether it risks undermining the aspirational image of luxury. Through a qualitative approach, this research analyzes insights from marketing professionals, consumers, and an influencer through in-depth interviews. Findings reveal that transparent and authentic storytelling during crises can strengthen brand identity, build trust, and foster emotional connections. However, poorly handled narratives may harm a brand's exclusivity and reputation. The study emphasizes the importance of aligning narratives about failure and reinvention with the core brand values to maintain authenticity and the aspirational image of luxury.

Date of Award	10 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Catarina Carrilho Pestana (Supervisor)