Relabelling luxury

Consumer engagement with luxury is evolving. A previously exclusive market is being faced with a new, inclusive mindset. Luxury is becoming less about how the label looks, and more about what you can say with it.

The luxury sector is a multi-billion dollar industry. It stands upon the strength of its own status, as something that exudes extravagance and exclusivity. Traditionally, it was unattainable to all but the elite. The wealthy could wear luxury as an emblem for their privileged lifestyle, in a bid to demonstrate the weight of their wealth and the height of their social status.

The industry’s growth is born in its ability to appeal to the consumer in a visceral way. Human nature is designed to strive for the unreachable. Luxury is considered as an insignia of success, and every demographic, whether wealthy or not, seem driven to get their hands on it.

However, the concept of what luxury is, and the way in which it is being used, is beginning to change.

Proximity and accessibility
The reason for this change can initially be explained in two words: proximity and accessibility.

Previously, luxury was nothing more than an empty aspiration for most consumers. Now, however, there is the internet. Consumers have social media, online market places, and peer to peer selling. Luxury is on their doorstep, and they have the choice to let it in. If consumers’ don’t have the money to buy it, they can rent it or swap it. They can access vintage items and one-off products through finance plans and sale opportunities. Many luxury labels have become as commonplace as mass produced brands are.

This type of proximity to luxury, and its wide spread accessibility, is relatively new, and companies are recognising it’s potential.

With the fashion industry leading the charge, brands are beginning to feature on digital platforms that combine the sale of luxury products at regular prices, The Outnet for example, has an array of over 250 designer brands with up to 75% off top labels. With every demographic now seeking out a piece of luxury, it is vital for most industries to be a part of that search. Arguably, however, this mass exposure has the potential to dilute the very thing that makes the luxury sector so revered. If it becomes an everyday occurrence, will people still want it?

A new function
Perhaps the answer to that question can be found in the way in which luxury brands are being absorbed into mass culture. They have a new function. They are not simply a product anymore, they are an experience.

If you broaden the definition of luxury, it can mean almost anything. It can be what makes us comfortable, or what gives us a sense of belonging. It can be something unique to us, that we alone consider to be priceless. Luxury then, with its expansion into the mainstream, has become less of a category and more of a state of mind. It is arguably not about wealth or status at all. It is about choice, and about choosing how to define one’s own identity.

Consumers are utilising the digitisation of luxury to create a statement. They are merging mass produced brands with luxury ones, and complimenting old items with new discoveries. They are recognising that luxury is a fluid concept that can be merged with other ideas of self. Luxury is no longer defined by ownership, but rather, by the statement a person chooses to make with it.

The evolution of luxury
But what does this mean for brands in general? The evolution of the luxury sector could be considered as the birthplace of a new type of consumer. Someone who knows exactly what they want, and what it is they want to say. Arguably, this self-assurance needs to be captured in marketing campaigns. Consumers are looking for a collaborative experience that creates an entirely unique result. They are looking to be inspired and amazed by the opportunity for diversity. They want to be different, but still accepted. Luxury provides them with this chance, and through digital media and innovative sale techniques, other sectors have the potential to do the same.

Perhaps it is not really the definition of luxury that has changed at all, but rather, the way we define ourselves. The modern day consumer is no longer content with just a piece of the label, they want a part in the whole design.

Observations inspired by insight articles posted on haystackonline.com by atelier and BMB. Read more from haystackonline in our Clubhouse.