The Serica Initiative recently welcomed J. Michael Chu, Co-Founder and Co-CEO of L Catterton, for an intimate CEO Dinner with members of our community. The evening brought together leaders across industries for a wide-ranging conversation on investment strategy, the changing global economy, the future of consumer markets, and lessons from Michael’s own life and career.
Ahead of the dinner, CINGS member Louisa Qiu sat down with Michael for a special interview, exploring one area where Louisa had interest and he has some expertise: the evolution of luxury and consumer brands.
Watch the full interview below or read the summary for some key points!
What Does the Luxury Consumer Value Today?
Michael described today’s luxury market as undergoing both a cyclical reset and a deeper structural shift. Following the surge in luxury consumption after the pandemic, the global luxury customer base has largely returned to pre-COVID levels. At the same time, he sees a more lasting change in what consumers consider worth paying for.
Increasingly, luxury consumers are gravitating toward goods with a sense of intrinsic or lasting value—particularly jewelry—as well as products that allow for greater individuality and experiences such as travel and hospitality. Rather than simply paying for a recognizable “badge,” consumers are becoming more selective about where and how they spend.
Attention Is Not the Same as Brand Equity
Louisa also asked how investors distinguish between a brand enjoying a social-media moment and one capable of creating enduring value.
Michael noted that platforms like TikTok and Instagram have dramatically democratized brand-building, giving emerging companies access to audiences that once required enormous advertising budgets to reach. But getting attention—or even generating an initial sale—is very different from creating lasting loyalty.
The strongest brands, he explained, build an emotional connection with their customers over time. Among the indicators he looks for are customer loyalty, pricing power, strong gross margins, and the ability to extend brand equity into new categories.
That kind of relationship cannot simply be manufactured through marketing. Trust and loyalty are earned through repeatedly delivering on the promise of a brand until that emotional connection becomes part of the brand's inherent value.
Investing for the Long Term
The conversation closed with a question particularly relevant to CINGS members: How should younger generations think about investing?
When it comes to luxury, Michael emphasized patience. Exceptional luxury brands depend on scarcity, trust, emotional connection, and pricing power—qualities that can take years or even decades to develop. For investors, that makes the sector particularly challenging and difficult to accelerate.
His analogy was simple: “It’s like baking a pie.” Turning up the temperature doesn’t make it bake properly any faster. Building enduring value takes time.
That idea carried naturally into the CEO Dinner that followed, where Serica members joined Michael for a broader discussion spanning investment strategy, the changing state of the world, business, and lessons from his personal and professional journey.
Serica’s CEO Dinner Series creates an intimate setting for candid conversations between accomplished leaders and members of our community—conversations that go beyond professional biographies to explore how leaders think, make decisions, and navigate change.
Watch Louisa Qiu’s full conversation with Michael Chu below.
Big thank you to our partner Lily at Bonham's for sponsoring this dinner!
Interested in joining future CEO Dinners and conversations like this? Learn more about The Serica Initiative and our community at sericainitiative.org.
