Recession And The New Idea Of Luxury

USA Today reports that for Americans, the meaning of luxury has shifted with the ongoing recession. While the affluent class is still spending money on luxury, its on things that add value to their lifestyle, be it expensive yet useful home appliances or top-end technology products, both of which create a life-long experience. Then there are people who are buying luxury items only when they are available on discounted prices. Seeing this trend, luxury companies too responded by having regular discount sales and launching new lines of ‘economical’ products.

USA Today comments:

It wasn’t long ago that luxury primarily meant the accumulation of designer clothes, expensive jewelry and fancy cars. For some, it still does. But for many consumers, the new luxury is something seriously different. The new world of luxury is less about designer labels and glitz and more about shopping savvy and an I-feel-good-owning-this mentality.

Says Milton Pedraza, CEO of the Luxury Institute, a research firm that consults for designer brands:

The luxury brands are all trying to reinvent themselves and deliver a better experience. The recession made everyone stop and rethink luxury and value. Even though we’re coming back, that realization has stuck.

USA Today: “A shift in meaning for ‘luxury’ as shopping habits change”