Luxury Within Everyone's Reach: How Exclusive Brands Have Transformed Consumption

Just two decades ago, luxury was reserved for a select few. Exclusive brands were synonymous with status, inaccessible to the majority of the population. Jewelry, designer bags, and tailored suits were goods that only the wealthiest could afford. However, something has drastically changed in recent years. Today, even with an average salary, anyone can own a Prada bag or finance a €1600 phone. What has happened? How have luxury brands managed this transformation?

But more importantly, what has changed in family economics that now makes it possible to spend so much on luxury goods, while traditional goals like buying a home seem increasingly out of reach?

A Comparison: The Family of Yesterday vs. The Family of Today

Thirty years ago, the priorities of an average family were quite different from those of today. If we look at how a family lived in the 80s or 90s, we can see that their focus was on long-term stability: buying a home, saving for their children's education, and ensuring a comfortable retirement.

• Homeownership:

  • Yesterday: In the 80s and 90s, buying a home was one of the main goals of families. It was considered a safe investment and a guarantee of stability. Homeownership rates were high, and although the economy was not always easy, families made sacrifices to save for a down payment on a house.

  • Today: In contrast, today’s generations face an inflated real estate market where housing prices have outpaced wage growth. Many families now rent, not by choice, but because homeownership has become unattainable. The dream of owning a home has been replaced by the necessity of adapting to a rental economy.

• Discretionary Spending:

  • Yesterday: Thirty years ago, families were more cautious with discretionary spending. Needs and savings were prioritized over luxuries. While there was a desire for nice things, there was a strong awareness of the value of money and the importance of saving.

  • Today: Nowadays, discretionary spending has skyrocketed. Easy access to credit and financing has led families to spend more on luxury goods, such as high-end technology, designer clothing, and expensive experiences. Brands have capitalized on this, making luxury not only accessible but almost a necessity.

    
    

The Shift in Luxury Brand Strategy

Luxury brands have played a key role in this shift in priorities. In the past, they targeted exclusively the wealthy, but now they have adjusted their focus to include the middle class, making them feel that they too deserve to enjoy these products.

• The Role of Credit and Financing:

  • Financing and credit options have transformed the way people consume. Now, with an average salary, it is possible to own a €1600 phone, a €1000 bag, or €800 sneakers, all financed in easy installments. This has democratized access to luxury, but at the expense of financial stability.

• Emotional Marketing and the Illusion of Necessity:

  • Brands have learned to sell emotions more than products. Today, we are not just buying a luxury item; we are buying what it represents: success, status, and social acceptance. This shift has made many people prioritize these goods over basic needs, such as savings or investing in their future.

    
    

The Consequences of This Shift

This democratized access to luxury comes at a cost that goes beyond money. It has changed the way families plan for their future and has redefined their priorities.

• Debt and Lack of Savings:

  • Many families find themselves trapped in a cycle of debt due to the purchase of luxury goods. By prioritizing immediate consumption over saving, these families are sacrificing their long-term financial stability.

• Displacement of Traditional Goals:

  • The dream of buying a home or saving for retirement has been replaced by the pursuit of instant gratification. Long-term goals, which once formed the foundation of financial planning, have become less common.

• Impact on Mental Health:

  • The social pressure to own luxury goods, combined with the lack of resources to achieve them without incurring debt, is creating significant mental strain. People are increasingly anxious about meeting consumption standards that, in many cases, are beyond their reach.

    
    

Conclusion:

The shift in luxury brand strategy, along with the transformation in family spending priorities, has redefined what success and stability mean in modern society. Today, it seems that everyone has access to luxury, but at a cost that is not only reflected in the price of goods but also in long-term financial stability and well-being.

It's important that we re-evaluate our goals and priorities and consider whether access to luxury is truly a sign of progress, or if we are sacrificing our future to satisfy a momentary desire.