For most people, luxury is not all about Rolex watches, Ferraris, and fine dining
Most of us will never be among the 1% wealthiest, or even the top 10%. But does that mean a luxury lifestyle is beyond our reach?
Not according to a new report that shows how Canadians and Americans are redefining what luxury is, with perhaps more modest expectations that do not always rely on vast riches to make them a reality.
But this is not about a society that is necessarily less materialistic; it’s more an acceptance that in today’s world, some of the things that were once simply “how people lived,” is now considered luxury.
The survey of North Americans by media agency Horizon Media found that being debt-free, owning a home, or having money to retire are now being talked about as luxuries, especially among the youngest generation of adults (Gen Z).
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The “New Codes of Luxury” study has identified three modes of luxury in 2023:
- Traditional: the domain of the wealthy that for most of us are only in our dreams. Yachts, sportscars, and exclusive golf club memberships are all part of the aspiration.
- Contemporary: this is dominated by sustainability and innovation such as cutting-edge technology, electric vehicles, and clean wellness, and lifestyle brands.
- Personal: this focuses on an individual’s context of their own aspirations, financial circumstances, life stage, and social world.
The concept of “personal luxury” is relatively new and rising with 66% defining it as an occasional treat while 34% see it as a daily self-indulgence.
Perhaps excluded from traditional or even contemporary luxury, those who define their personal luxury as a daily self-indulgence may transform ordinary moments into special ones and 44% of respondents believe luxury is an intangible and subjective feeling.
Number 1 luxury
Poll participants in both Canada and the US said that their top luxury is ‘comfort.’
"In a world filled with uncertainty – whether global pandemics, mass shootings, war, climate events, inflation, economic uncertainty and beyond – comfort is now aspirational, and understanding what worries people will help brands lean into how they can help people find comfort in ways big and small," said Maxine Gurevich, SVP of Cultural Intelligence of Horizon Media's WHY Group.
"This is critically true for luxury brands wanting to market to Gen Z, who are experiencing the most turmoil and therefore are looking for comfort and support in the brands with which they interact."
