Luxury brands, such as Automobili Lamborghini and Prada, have gained popularity on Instagram and TikTok due to their strong identity and Instagrammable styles. The Vogue Business Luxury Fashion Index surveyed over 8,000 luxury consumers worldwide, finding that these brands have a strong identity and highly Instagrammable styles. In 2023, the top designer brands of 2023, based on EMV growth, include Prada, Miu Miu, Saint Laurent, and Loewe.
North American luxury brands outperform peers financially, with consumers believing these brands are the most sustainable. Chanel and Hermès offer a greater range of sustainable products. Luxury brands often have world-famous logos reflecting luxury, style, and exclusivity, which can be achieved through unique color palettes, unique color palettes, and the use of public figures.
Luxury brands, such as LV, Prada, and Gucci, have a prestige factor due to their high price tag and prestige factor. They often have a rich heritage, an element of scarcity, a strong brand identity, public figures, and a superlative store. An uncompromised value system is crucial for luxury brands, and they play a clear role in the industry ecosystem.
Exclusivity is one of the key components that defines a luxury brand, as they not only focus on creating high-quality products but also on creating a sense of exclusivity. These brands have a rich history and legacy that create a greater emotional connection between consumers and the brand.
📹 What do all luxury brands have in common?
Unveiling the core elements of luxury brands like Valentino, Gucci, Rolex, Cartier, focusing on exclusivity, quality, heritage, …
Which are the three major characteristics of a luxury brand?
A luxury brand is a unique and exclusive brand that stands out for its sophisticated heritage, reputation, and name recognition. This sector offers a rewarding career path for those interested in luxury hospitality, such as luxury management or event management. To succeed in this industry, it is essential to understand what sets a luxury brand apart from regular brands, such as pricing, heritage, quality, and exclusivity. This knowledge can help individuals make informed decisions about their career paths and the opportunities available in the luxury hospitality industry.
What do luxury brand names have in common?
Luxury brands often name their founders, such as Tom Ford, Ferrari, Burberry, Hilton, The Doyle Collection, and Christie’s, to honor their heritage and provenance. Others are more benefit-based, like COMME des GARÇONS, which means “like boys” in French, or Acne Studios, which is an acronym for “Ambition to Create Novel Expressions”. Some brands, like 7 For All Mankind, are abstract, based on studies showing the average person owns seven pairs of denim jeans.
Rolex founders chose the name “Rolex” because it was easy to pronounce across all languages. Names can be combinations, flexing on the spectrum and sometimes pairing evocative terms with descriptive ones for grounding.
How do luxury brands stand out?
Luxury brands often use pricing as a marketing tactic to create a prestigious image, appealing to customers who are more inclined to pay a premium for the bragging rights that come with scarcity. However, this strategy comes with risks, as affluent consumers can be price sensitive. Working with celebrities and influencers can help luxury brands promote their products and enhance desirability. However, the increased number of marketing media channels has made managing celebrity endorsements more complicated, as brands need to confront consumers with testimonials across various formats. The 4 E’s of luxury marketing, a framework created by Michel Chevalier, provides a guideline for luxury brands to create effective marketing strategies that appeal to their target audience.
What do luxury brand logos have in common?
Luxury brand logos are known for their visual elegance and sophistication, often using negative space and modern sans-serif fonts. They are often limited to black and white, creating a subtle yet striking effect. These logos range from minimalist designs to emblematic symbols like Hermes’ horse-drawn carriage, showcasing their rich heritage and opulence. High-end brands have mastered the art of conveying their exclusivity and uniqueness through these logos, making them captivating and effective in promoting their products and services.
What are the big 3 in luxury?
The Trinity, also known as the ‘big three’, is a renowned group of the world’s most luxurious watchmaking brands, including Audemars Piguet, Vacheron Constantin, and Patek Philippe. These three companies, each with extensive experience in watchmaking, use the highest quality materials and craftsmanship. They have achieved their status through their dedication to producing exceptional technical watches, making them highly similar in characteristics.
The concept of the Trinity has been around for some time, and they have consistently focused on producing high-quality watches. The three Swiss watchmakers, Audemars Piguet, Vacheron Constantin, and Patek Philippe, have been renowned for their exceptional craftsmanship and dedication to producing high-quality watches.
What are the 4 P’s of luxury brands?
This article explores the marketing strategies used by Loud and Quiet Luxury brands in today’s competitive fashion market. It highlights the importance of effective marketing and brand positioning in achieving brand differentiation and audience engagement. Luxury fashion brands target different segments of the population with different categories of products. Loud luxury products, such as Gucci, Versace, and Louis Vuitton, are easily recognized but not affordable to all, appealing to brand-conscious buyers who value exclusivity and status symbols.
Quiet luxury products, on the other hand, are hidden from sight and not mass produced, built to order (BTO), with no logos or trademarks. These products prioritize quality, craftsmanship, and timeless designs over overt branding, as seen in Mark Zuckerberg’s iconic logo-less grey t-shirt. Quiet luxury brands like Celine and The Row also use BTO models to prevent overproduction, playing a significant role in sustainable fashion.
What is the number 1 ranked brand?
The article lists the most valuable corporate brands in the world, based on estimates by Kantar Group, Interbrand, Brand Finance, and Forbes. Factors influencing brand value include sales, market share, market capitalization, brand awareness, products, popularity, and image. The list is somewhat subjective, as no single metric exists for determining brand valuation. The top 10 most valuable company brands in 2023 are Apple Inc., Microsoft Corp., Amazon. com, and Google.
What are the 5 most trusted brands in the world?
Brand trust is a crucial factor in today’s competitive market, as it influences consumers’ choice of a brand’s product or service. It encompasses more than just product quality or cost-quality ratio; it encompasses a broader set of values-based factors. In today’s market, it can prompt consumers to postpone or walk away from a purchase. Understanding brand trust is vital for business growth and maintaining brand visibility and reputation during tight market conditions. Companies like Amazon, Netflix, Nintendo, and PayPal have the highest brand trust scores in 2024.
What do the world’s most trusted brands have in common?
The world’s most trusted brands, all of which originated in the United States, have a reputation for producing great products and fostering customer satisfaction. These relatively new companies, all of which are in the tech industry, have developed innovative marketing techniques to achieve this. They have built a strong reputation for their products and customer satisfaction, and their innovative marketing strategies have helped them establish themselves as leaders in their respective industries. These companies have built a strong reputation for excellence and innovation, making them a valuable asset to the tech industry.
What do top brands have in common?
A strong brand is one that can endure the test of time and make a significant impact on people’s lives. Its success relies on three key elements: an authentic brand promise, engaged employees, and consistently meaningful customer experiences. A dedicated and engaged workforce is crucial for a brand to meet customer expectations and thrive. An authentic brand promise connects the employee experience with the customer experience, setting the tone for the feelings and emotions the brand aims to elicit.
Marketers must craft their brand promise, cultivate its growth, and monitor its success in building trusting relationships with customers through brand experience research. In essence, an authentic brand promise sets the tone for the brand’s products and services, ensuring that it meets and exceeds customer expectations.
📹 Luxury Brands Are For Broke People
⌚️Timestamps: 00:00 I bet you didn’t know this 1:30 What are luxury brands really doing? 02:04 1st way luxury brands do this …
My wife and I have a net worth over $10M. We don’t own a single luxury/designer item. We Live in a middle class neighborhoof and shop at Walmart and HEB just like when we were young and broke. Neither of us has any interest in buying anything Gucci, LV, or whatever. We’re too sensible to spend so foolishly.
This is kind of clickbaity. Rich people buy luxury items. They don’t buy the luxury items that are “as seen on xyz” Outside of celebrity culture, actual wealthy people wear brands such as Loro Piano and they buy Delvaux bags, luxury brands that offer custom tailoring in-store. They spend money on quality, so they don’t have to spend on quantity.
I have absolutely benefited from wearing “luxury” brands or dressing really top notch. However, I realised it was not the brands that made me benefit from this, it was how groomed I looked. I had someone point to my handbag I got for £100 on sale (£400 retail price) and ask me where I got it and guessed it cost thousands of pounds, It made me laugh. Looking well groomed, tidy, and wearing high quality (does not have to be expensive nor branded) and behaving with manners, grace and kindness will do the trick.
The genuinely wealthy people I know, not the ones in massive debt, buy luxury brands, luxury cars, go on frequent expensive holidays and spend plenty of money on socialising etc. And they still have plenty left over. They generally have large asset and property portfolios and/or a successful business.
I used to pick orders at Amazon and I spent 8 hours picking luxury item orders one day and at the end of my shift I saw the trailer that my orders were put on, pull off the dock and I saw that it was a trash trailer! I was so mad and I asked why don they give them to us (the employees) and my supervisor said it would bring down their value (the clothing brands). And they dumped the clothes inside of a massive indoor burn pit where the DEA destroys drugs so that no one ever sees. So if you ever see a trash semi TRAILER leaving Amazon and not a dumpster trash truck there’s probably luxury items on it and the driver doesn’t know it.
There are only few staple luxury brands I purchase because of the quality. Most middle class people wouldn’t know the brand and that is what I like the most – it being unknown. Plus, I don’t like a lot of logos, as I am not a billboard for any brand. If you want to know who doesn’t have the money to purchase lux, just look to those wearing a T-shirt pronouncing the brand name.
There are many many different luxury brands. Wealthy people usually don’t buy logos… (only cool ones lol) but they do buy over the top expensive clothes & accessories to match their social networks. In our circle we buy a certain coffee, which is ridiculously expensive and shop clothes from conscious companies that are 1000x more expensive. So we pay the similar amount like for LV or GUCCI, but it doesn’t show off as much… BUT our friends know exactly what brand it is and how much it is. So… it’s all about who you hang out with. Also, if you buy quality brands or luxury, some of the value is not lost as you wear it. Most of my clothes are resold for a decent amount at luxury second hand markets. So it’s investment wise a good choice & your own value increases in some circles. But I do understand why some people choose to not buy luxury. Whichever is fine. It all depends on how you wish to spend your money.
Great article! The only note I’d add is that the “lower” class and middle class consumer debt is from more than just luxury brand spending or “keeping up with the Joneses”. According to the stories covering consumer debt, people are living paycheck to paycheck as their wages have not kept up with inflation or the cost of living in some cases. And most people can’t afford to budget to accumulate $1,000 in savings. Families are using credit cards to buy gas, groceries, eating out, and for emergencies as well. Luxury spending is much more a phenomenon for people in middle and upper middle class than lower or poor, because of the disparity in access to disposable income or credit.
I personally don’t think luxury brands are for broke people. Buying organic food could be perceived as luxury by some while others are willing to pay because of its perceived benefits. Remember, if you are wealthy, a lot of these ‘luxury’ brands become regular to you. The same way some people pay for a gated community because they want to be there, others will think it’s luxury. Luxury is a status based on wants, not needs; if i want to get to work and have a personal space, I’ll prefer a car, not public transportation. Now if i decide to get to work in a rented limousine,it might be something on my bucket list, not luxury. So you see, luxury is a matter of a state or status; physically, mentally, financially, etc. Even contributing to a retirement plan could be a perceived as ‘luxury’ because not all jobs come with retirement plans.
My sister who is a podiatrist spent time volunteering with people living in poverty in Niger where she made shoes for those with foot deformities due to leprosy. She said the people in the community had no incomes and were very poor. But if a someone did manage to make some money they didn’t buy food or things for their home, they would buy a hat. A hat immediately gave them status and elevated them above their compatriots. People are the same all over it seems.
Something that gets glossed over by this article and by others on YT discussing the higher end brands is quality. I went and bought a backpack that looked like something by Jansport/Eastpak, no brand, and was 1/3 of the price. 3 months later I had to buy another one, and 3 months later I bought a proper Eastpak backpack that lasted me years because of the quality of the brand. Likewise with something like Supreme and their tees and underwear – they last forever compared to fruit of the loom stuff that falls apart relatively quickly and doesn’t feel heavyweight. The Diesel jacket that my in-laws bought me has lasted 5 years without a single tear despite me wearing it a LOT and washing it when I need to.
All the genuinely rich people I know of do not buy many obvious garish brand names (when it comes to clothing at least). If someone dresses head to toes in brands you know they’re desperate to be perceived as wealthy.. whilst clearly they havent actually looked at what rich people in general buy. Most rich people are actually understated with their style.
Misleading. You think the VIP clients at Hermes and Chanel are broke just flexxing? You clearly do not know much about these luxury fashion brands. Of course there are wealthy people that don’t like to show their wealth in materialistic goods, but the broad generalizations are not correct. Ask any sales associate at these high end boutiques in any major city – their clients broke college students in debt to million/billionaire executives and their spouses.The client buying the gucci bag and the client buying the hermes couch are NOT the same socioeconomically.
Rich people do buy those brands but it’s different than what one would assume. This is what i have realised after being on social media and following fashion and lifestyle influencers and models for a long time. Many are escorts to rich people and rich people buy those luxury goodies for their mistresses and other promiscuity partners. So while rich-rich men may not always end up using those products, they do end up spending on those indirectly. Rich-rich women do buy those products especially those who have ancestral wealth.
Spoken like someone who doesn’t know actual wealthy people. Buying a Birkin bag is actually a good investment – their value tend to increase with time. Same with many exclusive watches – they can be considered “investments” whereas a basic 150$ watch never will. Run-of-the-mill flashy luxury good are for broke people. But I’ve met my fair share of of actually wealthy people and most of them aren’t wearing cheap clothes or driving shit boxes. They are buying the ACTUAL luxury goods.
Let’s be honest wealthy people do like & buy luxury things, but it’s not the flashy luxury brands that majority of people know & wear. Back in the day when Bottega Veneta was less known it was one the most popular brands amongst wealthy customers, same goes for Brunello Cucinelli & Loro Piana. Nowadays LVMH or Kering keep buying up everything & promoting these brands as well as quality going down the drain. Thus wealthy customers once again switch to lesser known luxury brands with better quality🤷🏻♀️
Shocked anyone still wants luxury goods these days. Nice luxury car? Get wrecked or vandalized. Nice watch? Get robbed. Nice handbag? Draw unwanted attention. Nice shoes? They get worn out/splashed on/worn out. They are so common that no one gives a shit about them anymore. Dime a dozen. Yawn! Better to spend your money on learning skills, talents, interest, and passions that actually make a difference in your life.
I think this is meant for Americans. Europeans and Asians you know in Europe and Asia love their luxury goods. There’s no doubt luxury good sell well in China for example well there’s a lot of billionaires per capita. Also, trust me! I’ve worked with people who are millionaires and they love their luxury brands as well. For f sake, they have the money! Lol
I have slowly come to realise this myself over the last 10 years. The richest guy I know who lives in Switzerland and “owns” a university drives around in a very basic Toyota. People have adopted this strange idea that if they look the part with luxury brands that “success” will automatically follow. It’s overpriced nonsense.
I shop at factory outlets and scored a 1k suit for $180AUD. I also had a number of co-workers this week comment on my Coach tote that fits my laptop and lunch box on how luxurious it was. I proudly said it was $400 after 60% off. If you know where to look you can get top quality brands that don’t have their labels all over it for crazy mark downs if you hold off and shop the sales. My best trick this year was clearance Julius Marlow (?) Shoes 5 pairs at $50 each down from $150+ In Australia due to import exclusivity everyday brands in the US like Tommy,CK and even American eagle are marked up crazy. I only buy on discount.
People who get caught up in luxury brands are funny to me cause their claim of I buy it for quality is even more laughable considering the quality has gone down considerably yet the prices have gone up for mediocrity significantly, like absolutely outrageous prices and a lot of them go into debt for it and for what? to keep up with joneses? To put on this facade of having it like that? to show off? for who though? who are they trying to impress being a walking advertisement with someone else’s name on your body your making filthy rich for overpriced mediocrity, like I just buy what I like, what I can afford, and what I feel is worth my money even if it’s nothing name brand or luxury, idc cause I don’t care for luxury or brands, I just wanna look nice and feel comfortable and I can do that just fine on a budget, in an affordable way and look way better than those in luxury from head to toe
You forgot to mention expensive branded clothes which are also luxury brands such as Adidas, Nike, Kappa, Puma, Champion, Converse, Vans, Levis, Guess, Gant, Tommy Hilfiger, Peak Performance, Helly Hansen, Nordic Face, etc. These are also brands to be careful of. But you still shouldn’t fall into the trap of cheap clothing chains and fast fashion like H&M, Jack&Jones and New Yorker, because too cheap is actually expensive due to the short lifespan.
I am currently teaching myself to make my own clothes, with books that you can find in charity shops and the internet, it’s easier to learn how to sew. I also plan to buy a nice coat from a small ethical brand that makes good quality clothes that look more unique than luxury coats. I think nowadays, if we look around, we can get nice and ethical brands for prices that won’t break the bank.
Very superficial article that seems to focus only on “cons” of luxury clothing, but I understand that one can fit so much in a 13 min article. I disagree with the example of Mark Zuckerberg and other popular figures allegedly “not wearing luxury goods”. Yes, everyone knows they’re rich, they don’t need to prove anything but it’s quite naive to think they’d be wearing stuff from Target. They love comfort and indeed do wear luxury brands, usually plain colors, without flashy logos and quite well tailored – like Brunello Cucinelli or Loro Piana, where t-shirts cost up to $1200, cashmere sweaters between $5k-$10k, and suits/coats up to $20k. Second, yes, quality has been deteriorating over the past couple decades while prices have been increasing. But it’s pretty much in every industry – electronics, furniture, etc. Nothing is designed to last anymore. And while buying a sub-par brand new luxury item on credit is indeed a terrible financial decision, there are options like thrifting and vintage clothing. I found many gorgeous luxury pieces from late nineties or early 2000s for a fraction of a price and the quality is impeccable. Dressing well has become immensely hard these days because most of the clothing stores sell absolutely garbage while trying to mislead people into thinking their stuff is bang for a buck and affordable.
There are price points for everyone and I don’t agree that luxury brands are targeting broke people. I think it’s insensitive to specifically call out Broke People in this article. With the hyper inflation post covid even average people are finding it hard to keep up with the cost of living . Luxury brands are not that dumb to target the wrong customer base and their sales figures speak for themselves i.e. they are still making billions even if there is contraction with their sales of late.
My friends and I spent the most on luxury goods when we were in our early 20s and had no real responsibilities so we could spend frivolously on dumb designer shit like sunglasses or wallets. I’m also sure that the vast majority of “luxury” spending is on those cheaper accessories like sunglasses and small leather goods, but don’t quote me on that. Anyway, now that I’m older and therefore wiser, I have access to the fakes black market >:) I think a lot of older poors like myself prefer to go this route.
Rather than the branded ones i was thought by a good friend who i know is well off but doesn’t spend a dime on any of those luxury brands.. they said its better to get custom made pieces, its surprisingly cheaper than branded ones but the quality and material is guaranteed, like shoes, bags and clothes.. a good example was their leather school shoes they’ve worn 15 so years ago was even handed down to their son and nobody could tell it is.. I’m no fan of anything branded but i think I’ll consider getting a customed purse or shoes maybe
I say this time and again that the most expensive “luxury” I will buy is Coach. Not only do they have cuter styles (the ergo bag with bows and the blueberry bag as 2024 examples) the materials are okay for the price. Raw materials can only get so good before the quality reaches a plateau. If you work with fibers, like through spinning/knit/crochet/felting/weaving, you know this very well.
Really?! 😂 next your gonna tell me luxury cars are for brokies. The rich are the ones attending their fashion show and buying out collections no broke person can afford that. Next you’re gonna tell me rich people get all of their clothes from target and they drive Toyota’s and fly economy. You sound ridiculous.
I’ve yet to watch but I’m at the beginning when it comes to branding. While the expensive clothes are expensive, they show the creator (like Polo). Insignia is clear and recognizable. The most expensive high quality polo stuff you wouldn’t know its value unless you either know the shirt off of eyesight or the tag. Only ways to recognize certain brands super premium quality stuff. Also with that said it’s known as stealth wealth. They’re paying for the tag to both not be visible and the highest quality made by a given brand. Even Reebok has higher quality stuff.
I live in Asia, which has a slightly different perspective. I feel like the wealthy in Asia tend to be a lot more ostentatious because one’s reputation or “face” is a lot more important here than it might be in more Western countries. I’ve had people telling me that it’s no use spending a lot of money for a well-made item if it doesn’t have a recognizable logo to go along with it. I wonder too if there’s some sort of post-colonial sentiment at play here because I do notice that the majority of “luxury brands” are Western. There are comparatively few Asian designers that have the same cache. In any case, for my own life, I honestly do prefer artisanal, well-made items, even if they’re more costly than mass-produced products. As for luxury brands, I mostly buy them as gifts for friends that I know will be into that stuff
The luxury brands that cater to the ultra rich are bespoke. Also, the expansion in the luxury brands to products for the merely well to do, includes different product lines. Vuitton is a luxury luggage brand. They also have a couture line. Their small leather goods became a popular middle class status symbol back in the late 20th century. A lot of Big Luxury took an interest in the hoi polloi during that time and developed products to appeal to successful young adults. Scarves, Hermes is known for those. Fragrances, those were hugely popular. These were all intended to appeal to brand conscious buyers. Not the super rich.
I cant believe that the Middle class (majority of money holders in circulation) spend more money than the smaller group of people! Every 1 middle class person buys 1 bag and every 1 rich person buy 5. 20 Middle class = 4 rich. People like to have nice things. Broke people cannot afford luxury items. Broke means you have pretty much nothing. Not a house and kids with 2 cars.
I used to work behind the scenes in a luxury goods shop on Bond Street in London. In week 2 I had my tour of the factory that made aome of their bits and pieces in the Midlands. I saw a 19 year old boy, on close to minimum wage, making a leather covered bedside organiser caninet thing. The insides were all MDF. He made 6 a day. I guessed the material cost per cabinet to be about £100. They sold for £9,500. That was 15 years ago.
“If you earn $6000 a month….” Okay, well I sure am not in your target demographic, Vincent. Speaking from experience now. If you’re truly “low income”, then luxury goods aren’t in the equation, because ALL of your money is going towards basic survival. You can’t splurge with credit cards because you’ve defaulted on them, can’t pay the minimum, they’re in collections and they’re sending you threatening letters. You’re not buying a Louis Vuitton handbag or Prada shoes or whatever because you’re worried about the power going out or getting evicted altogether at the end of the month. I think your “low income” people are really just middle class people with exceptionally stupid spending habits. You might want to make the acquaintance of more actual poor people and a few less rich ones. It might give you some valuable perspective. As for luxury goods themselves, they’re complete bullshit. Overpriced garbage for gullible narcissists. Late stage capitalism at its finest. Just my opinion.
Well when I was a young chef with not a lot of money, I bought pots and pans piece by piece off of ebay and gently used. I’m 38 now and still have those pots nearly some 20 years later. It was not a waste for me long-term. E. Dehillerin, Ruffoni, All-Clad, Mauviel, Staub, get yourself some good pots!
My wife and I make about 200k, the fanciest thing she owns is a Burberry scarf, the fanciest thing I own is an $1k suit. She shops at goodwill, I drive a 15 year old Subaru. Our kids will go to college without debt and we will retire early, hopefully leaving them something substantial when we’re gone. And nobody will remember that I wore $50 dress shoes, or that she didn’t have 10k handbags.
When I was in my 20s I always got jealous of women who had luxury bags. And I got stuff expensive stuff and there. However as I got older I set a goal to buy myself something nice for every big goal I achieve. My first adult job I got myself a Saint Laurent bag and I found that works for my hard work AND give myself a treat for that😊 now in my 30s my next goal is to get a condo so my money goes to investing and saving, so my goal abd my treat will be the same🧐
This is a load of rubbish. There are rich people besides tech geeks, whom NOBODY should look to for fashion, and European aristocracy. NBA players are rich. Movie stars are rich. Recording artists are rich. There are many shades of “rich” between broke and Mark Zuckerberg. For every “rich people don’t wear Celine or Balenciaga” using Elon Musk as an example, I can show you 20 pro athletes who do. And people who make 5 to 50 million Dollars a year are rich.
Living beyond your means in order to keep up appearances with overpriced material things equals serious mental issues! They are everything that’s wrong with society! It’s actually pretty insane that people fall for this so easily too! When I see someone with expensive things I immediately think they have credit card debt. I don’t think oh wow they must be so successful. They look ridiculous.
Invest 50% of your paychecks into low-cost index funds and forget about it. Do whatever the hell you want to do with the remainder, even if that means buying any of this crap. Not enough to pay your bills after you invested the 50%? You somehow made it work when you made half of what you make now, figure out how to do it again.
My sister once told me “When you buy something, you are not spending money, you are spending time, you need to spend time to work to earn that money”, this helped me to pay more attention to what I spend my money on ? Because even if you think you can make money back, you can’t take back time :yt: condup :yt:
Now that I’m retired, I often shop at Salvation Army, etc Now, while I was working I did have my suits tailored in Asia when I was on vacation. But, I don’t buy suits now. I learned from being stationed overseas in the Air Force, that quite often these “luxury” brands were made by people earning very little. Or I could buy the same thing, e.g. a Polo shirt, for $5, when it would go for $40 in the US
Video is spot on and very much true for “designer” brands. However, there are actually 2 classes of luxury brands: Designer brands that are described in this article and Actual high quality brands with artisans that are not famous and generally fly under the radar from public consumption. For example in men’s shoes, most people will heard of LV, Ferragamo, Gucci etc. But the REAL artisan quality brands are Edward Green, Gaziano & Girling, John Lobb, Crockett and Jones. These brands may charge a premium but their quality is far beyond the designer brands at the same price point and their products last decades. Due to their price point, they would be considered “luxury”.
The thing I don’t like about these companies is if a regular person and a celebrity would go to a store they would be treated in a totally different way. The same is restaurants ….. everywhere. So buying something that very wealthy people would get to the rest it is an accomplishment. It is different to buy something because you like it, the design of it, and buy it only for status reasons. That is not normal.
If you want to see the history of this and how it’s developed you’re looking for a book called Deluxe: how luxury lost its luster. And it’s not that rich people don’t buy luxury brands.They just don’t buy key chains and belts. The ‘it’ handbag was invented by bernard arneau to scam poor people. You are far better off going to an artisan to have something custom made.
Luxury is relative. Does the pricetag and affordability define luxury? If so, for a wealthy person a 5000€ bag may be 0,005% of their total wealth, whilst someone who earns minimum wage needs half a year to earn that. While being frugal in the short term may lead to overconsumption in the longterm by buying lower quality items that need to be replaced more often, a lot of luxury goods aren‘t made to last either.
I’ve never been impressed by designer labels or the idea of trying to give off a fake appearance. Who’s it all for? What does it really do to status? Nothing. The people who buy these things know they aren’t rich, and if THEY know they’re broke (probably ’cause they just blew tons of their money of fakery), then, that’s not just going to make them feel like a fraud, but it’s really sad.
Luxury goods are not a s splurge, they are a ripoff – they are sold at 10 to 20 times the cost of manufacture, no matter how good the quality. It is possible to find excellent quality from less publicized companies. And of course if you are vegan or vegetarian, certain things immediately get cheaper (shoes, bags, coats). I grew up in Beverly Hills 50 years ago and no one I knew, adult or teenager would waste money on Louis Vuitton, Dior, Gucci. We all knew it was a ripoff and was only for the tourists.
This isn’t going to make me popular but I feel sorry for people who feel the need to display their wealth like this. It reeks of insecurity to think people care that YOU own expensive things. Do they honestly think people sit around thinking about THEM all day. …and don’t even get me started on the people who can’t afford it buying this stuff…
I think its more worth saying that rich people dont tend to buy the luxury brands that people think they do. I have worked with some incredibly wealthy people and very few of them buy coach. They buy designer microbrands or they get them custom made. Unless they are the kind of rich that is publically viewable like actors. they are a totally different market.
I follow a very nice and bubbly youtuber who loves luxury items and she herself has said that she maxed out credit cards in the past because of her love for luxury. And now she has a spreadsheet where she plans her purchases in advance and follows it. But I never understood this concept — why fork out THOUSANDS on bags and purses? And imagine paying $5k for a designer jewelry item that’s not even 22k gold. You’re literally paying for the marketing of that brand and not actual precious metals (which are a store of value and known to be good for hedging). In my opinion, if a purse or pair of shoes is more than $150…it’s not worth it. And that too with the caveat that it’s high quality and will last for atleast 4-5 years easily.
1:46 this is just a marketing talking, if say sell product to rich ppl, it make normal folks felt excluded, and normal folks can get rich in future too. but saying is for ppl want to indulge themselves, make everyone included, and that doesn’t mean they charged any less for their products in the same time. but it sound good for the brand image.
Hah. This is part true. I mean..I first saw Louis Vuitton on newlyweds or something like that. But…I do know someone that’s worth about 8 million…know them very very well…and they don’t buy anything like this. They get mad paying 3 k to replace a hot water heater. So…it’s kinda weird for me tryin to figure out what most people really do spend on things like this in general. And yes I know like Jessica Simpson could have been sponsored by LV. And the person I know…a thousand to them is like they lost a million in their mind. It’s pure craziness. If I had money I wouldn’t buy LV (Rolex is different ) or anything not gold that’s expensive like that. But I’d also replace a dryer just like that…no Trippin over spending a thousand dollars.
I’m from INDIA and our royals never bought branded stuff. Before independence they were the rulers who often visited Europe but not once they came back with any luxury goods. The only luxury brand they flaunted was Rolls Royce. Elites always prefer custom made things and they never tell you names of artisans
Im a multi millionaire who likes French and Italian apparel made by designer/luxury brands because of fine craftsmanship and quality materials. I do my best to avoid articles that have large and obvious logos. Usually those are the most expensive articles in the collection. The less expensive articles usually carry the loudest branding so that more people can buy them and effectively become walking billboards for the brand.
I respectfully disagree. I’m broke but common sense know that if a person can afford ten’s of thousands of dollars in handbags, they’re rich. However, the way you present your topic is a mess anyway. How people pay or splurge with their own money, is none of our business. You make it look like credit equals debt is a poor misunderstanding of how a good financial management should be, why would you use your own money to buy an expensive item when you can loan it in your credit, pay in installments, and increase your credit score while having your own money to invest in actual profitable endeavours. Another point is that, while we cannot relate to the hype of luxury goods, to invalidate and make it seem like the goods these “broke” people are buying are very impractical and can be bought in a much lower price if we disregard the brand, make’s it seem like you don’t understand marketing. Although the production cost is relatively low compared to the price they actually pay, you cannot compare their quality to that of a department store one’s. These customers pay for the quality and experience, if it’s for their ego or just stupidity, it’s none of our business. Again, we like different things anyway, you can also use this to argue as to why we pay more in michelin star restaurant when there’s a cheaper and tastier chinese restaurants just around the corner, etc. To call them “broke” is an overstatement and feeds to the real broke and insecure people that don’t have their own brains who watches these articles for self validation.
Videos like this reasure me a bit. I live in Seoul, South Korea and here so many people are fully decked from ear to toe in luxury brands. I’m not from Korea so I used to not pay attention to brands but it’s my sixth year here now and I notice that it is starting to affect me a bit. Sometimes, I feel out of the norm and I’m tempted to buy some accessories if I think that they look nice. Fortunately, I end up thinking: “No, I’ll get robbed if I wear that in my country and I can find good quality stuff without a big logo on it”. Also, I like seeing my networth go up every month, not down.
Hermes did it right. Make what you have sacred and exclusive. Then put it behind a pay wall, so people have to invest not only money but time. This is why I believe they are so highly valued. Plus they actually do a good job at producing quality products. You have to buy multiple Hermes items with a Hermes sales associates until you made it onto the list for an Hermes bag. And when you get the bag it was a you get what you get and don’t get upset. But you had a bag, and that meant you were one of the selected few who could afford it. I know they’re being sued now, but their business model works. You want something that is good quality and exclusive.
The notion that brand equates to quality is a recent one. Until this century, luxury was denoted by craftsmanship, design and beauty. Today luxury is denoted by a name. We recently went to Rome for a week and shopped in the “leather district”. In some places the artisans were busy at work and in the small, unglamorous shops it was not a brand that was stressed but the quality of workmanship and sometimes the person who actually made it. I bought a jacket and she a bag. I could afford a Brioni but go a Gerard Butler for 160 Euros.
I can’t afford a pair of Jordan’s or Yeezy’s. But if my 10 yr old Ford Fusion suddenly gave out on me, I can afford to replace it with a brand new Camry or Accord with cash. I learned at a very young age that luxury brands are meant to keep you poor. SN: I still haven’t recovered from Payless Shoes closing down. 😔
The formula is simple, there are way more impressionable poor people than wealthy people. Wealthy people generally don’t feel the need to impress others. Also, I don’t think following my neighbour’s spending habits is wise. They have a Rolls Royce Phantom, two Range Rovers, and a Lambo Huracan. Me on the other hand, I drive a 3 year old base model pickup truck and I’m happy with that. They probably think I’m bringing down property values and that makes me happy.
Spot on, reminds me how Rolex produces/mass manufacturers around 1 million watches a year. Meaning none of them have any hand finishing often expected of a luxury item. But there are waiting list at there ADs. And when ADs have said they have no watches available for sale, there are actually unsold watches in the safe at the AD
If you’re going to splurge on unnecessary nice stuff, do so on the stuff people don’t see. Get the nicer plumbing, roofing, and pest control plan for your home before you get the granite countertops in your kitchen. Get comfier underwear before you buy fancier clothes. Get triple ply toilet paper before you splurge on pricey cosmetics.
“Taking from your retirement account” People have retirement accounts?! I can’t even afford a cheap apartment. I’m literally leaving the country because it’s cheaper to live elsewhere and I’ve accepted the fact that I will have to work until my cold, tired husk of a body just stops functioning. It’s insane to me that other people in my generation can live outside of poverty.
I used to think luxury brands are investments. Then my brother in law exposed me to the world of investing on the stock market. After that I lost interest on luxury brands seeing that its nothing more than trying to impress other jabronis who would then run to you to borrow/ask for money making you the bigger jabroni
So first you say, “luxury brans are for BROKE people”,, then you say “luxury brands are for every day people” making up to $125K. So I am gathering that you consider middle income people BROKE people or just foolish stupid people who buy luxury brands. I can see through that cheap garment. And I can bet to the tee that EVERY comment and reply to every comment below consist of the same attitude. All the comments are arrogants bragging of their wealth, liquidity in their investments, millions in savings, and they walk around in T-shirts with holes, leotard pants, and flip flop sneakers. I am NOT impressed.
6:16 I thank you for saying that. I decided to treat myself to a Rolex when I got my CPA license. It took me 6 years of college and 2 years of additional study and prep to pass. I was ultimately called to pick up my new Explorer II watch. It was a lot of money, but it will likely be one of the few times I splurge at that level. All the hard work, discipline, and sacrifices made owning that watch much more meaningful.
The article is well organized but I think there are too many nuances that are missing. LVMH also owns Sephora and Hennessy so they have a reach here several different segments of consumers. Each brand has a different market they are trying to reach and luxury has its own levels. Different products they are selling also connects to a different client segment. Sunglasses, accessories, and handbags are usually reaching an aspirational client who wants to flaunt their wealth with easy indicators and items they can use repeated while as ready wear clients are usually wealthier and have the ability to buy a 3k sweater they will only wear a few times. Louis Vuitton and Gucci are going to appeal to the masses because they are super recognizable but different brands such as Loro Piana don’t have the same approach. Luxury in itself and has too much nuance to put such an easy blanket statement on it as you did and I think it’s something to consider. As a luxury client advisor myself most people who work luxury retail have that attitude because those in the lower and middle class are the worst people to work with because they act like they know everything about the brand but can’t afford it. They will try to return items, they will spend hours in the store, they will be rude and disrespectful to you so it’s not worth our time to spend hours dealing with disrespectful clients who can’t afford it and as a result we are more reserved with our energy. Hundreds of people walk into the store everyday and we have learned that putting our all into everyone isn’t worth it.
Idk, it’s one thing to buy things for quality, but people who buy these things don’t do it for that reason. Why? Why do they humiliate themselves by being on a wait list, having to wait in line to get into an empty store or be a walking billboard. So many unfortunate people in this world to help and they chose throw money at useless stuff like that. Says a lot about them actually.
This topic is so ignorant and annoying to me. Not all designer stuff is flashy and obviously designer. Some designer items are insanely expensive and the average person would never know how expensive it was. Youre a fool if you think REAL wealthy people dont buy this stuff. Theres also a difference between people that make millions and people who saved their entire lives to become wealthy. The people who save every penny and shop from Walmart do not represent the really rich people whos net worth goes up or down millions every second.
I have do this sometimes when i have extra cash however i try to find the things l will use for years. i found my Oscar de la Renta sun glasses for 15 dollars and i got them that was about 10 + years ago. still use them to this day and love them. I look for the quality of things and am loyal to a brand that keeps the quality up. I have one MK bag and it’s one that will last for years to come.
I grew up with with a family who was close to the trumps, i learned from them that luxury isnt stuck up nor is it loud, yea they have nice houses and donate tons of money to schools but nobody is wearing louis vuitton the kids wear regular clothes from walmart, but upper middle class people who arent actually rich will dress their babies in burberry
I have owned 3 pairs of LV shoes for ~10 years, but they still look like new. The LV logos are hidden, so people don’t know I am wearing luxury shoes. Many stranger women stopped me on the street and said that I had nice shoes. Also many people stared at my LV shoes a lot. I think my LV shoes will last life time.
What you’re essentially saying is that luxury brands are in a race to the bottom. Because the middle class is being hollowed out, reaching everyday people basically will mean a veneer of luxury which is a hollow shell. The decline of Gucci to the bargain bin should be a warning for aspring “luxury” conglomerates. If you’ve got older money, you don’t want to be seen as gauche.
I don’t buy too much luxury goods. But i do like buying fragrances from these houses. I buy one and use it for over a few months. That’s the most luxury i purchase and I think that’s ok. If i also like a bag that only a luxury house can produce, then I look for alternatives first, and then check second hand versions. But ive only done this once since I cannot look for a local manufacturer who designs the same attache case
The people who knows about this, have no interest in revealing the truth as they are benefting from it, why kill your cash cow. The people who dont know about it, and who are falling into the traps have a fake image to maintain, and or are too stupid to know, of course they cant come out to say… At least you are making this article to let everyone know. I for one try to stay away from everything most people do, because the herd of idiot blind sheeps is definitely controlled by the rich and powerful