Has Luxury Lost Its Luster?
Luxury was once synonymous with discretion, rarity, and impeccable craftsmanship — but the shift away from this is becoming difficult to ignore.
As prices soar, quality becomes increasingly suspect, and once-exclusive maisons chase mass appeal, a quiet crisis is emerging in the world of high-end goods. Among discerning consumers discontent is growing, and many houses are at risk of losing their appeal.
The Price of Prestige
In recent years, luxury brands have aggressively raised prices—often without any visible improvement in design, craftsmanship, or customer experience. According to Vogue Business, the average U.S. price of global luxury goods has risen 61% since 2019, pushing once-accessible icons like the Chanel Classic Flap and Louis Vuitton Neverfull far beyond the $5,000 mark.
This has led even loyal clients to question the value equation. As the Wall Street Journal notes, these sharp increases, often driven by profit margins rather than innovation or investment in quality, can erode the consumer trust luxury brands have spent decades cultivating.
Luxury’s classic equation—higher price equals higher quality—is no longer holding up under scrutiny. When the price tag climbs but the experience remains static (or worse, deteriorates), even the most brand-loyal clientele begin to look elsewhere.
The Erosion of Quality
Once celebrated for artisanal precision, many luxury products today seem to lack the longevity and attention to detail that once defined them. Whether due to scaling production, outsourcing manufacturing, or cost-cutting behind the scenes, the result is often a product that feels more mass-market than maison.
Vogue Business reports that a third of luxury consumers now believe brands should focus on improving product quality to regain relevance.
This perceived drop in quality—while profits rise—is not just a practical issue. It’s a philosophical one. Luxury is as much about experience and expectation as it is about product. When a handbag’s stitching frays or a cashmere sweater pills prematurely, the illusion is shattered.
From Rarity to Ubiquity
In an attempt to drive growth, many legacy houses have broadened their reach through entry-level offerings, celebrity-driven collaborations, and logo-heavy capsule drops. This mass market embrace of what was once reserved for the few has given rise to a new term: “masstige”—prestige, for the masses.
But prestige loses its power when everyone has access to it. A Birkin that’s easily spotted in airport lounges, on TikTok, and draped over the arm of influencers across income levels may no longer carry the cachet it once did.
The issue isn’t democratization per se—it’s overexposure. When exclusivity evaporates, discerning consumers begin to disengage. The very definition of luxury is dynamic, and when too many compromises are made in the pursuit of scale, a brand risks losing its soul.
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Consumers Push Back
The result of this dilution? A growing undercurrent of dissatisfaction. Today’s affluent consumer is smarter, savvier, and more discerning than ever. Many are quietly shifting their loyalty to under-the-radar artisans and niche luxury houses that deliver similar aesthetic appeal without the inflated price tag.
Meanwhile, younger consumers—Millennials and Gen Z in particular—are reimagining what luxury means altogether. For them, sustainability, transparency, and uniqueness often outweigh traditional prestige. In fact, studies show that 47% of affluent U.S. consumers consider a brand's social responsibility important when making a purchase, and 22% have boycotted a brand due to poor ethical or sustainability practices.
While mainstream luxury drifts toward mass appeal, the truly discerning are charting a different course. Ultra-wealthy patrons and legacy clients are quietly realigning their approach to luxury—moving away from oversaturated brands and overhyped products, to substance and refinement.
Investing in Niche, Artisanal Brands
In-the-know consumers are turning to under-the-radar labels that offer exquisite craftsmanship, limited production, and a more personal ethos. Apparel brands like Tove Studio provide elevated experiences without the noise of trend-driven marketing.
Prioritizing Craft Over Clout
Old money rarely buys the loudest thing in the room. Instead, it values quality that speaks softly: hand-stitched leather, a perfectly tailored coat, or an object made by a master artisan. These purchases are not about social media virality—they’re about legacy.
Buying Fewer, Better Things
A refined wardrobe or curated home doesn’t require constant consumption. True luxury is slow. Rather than chase every drop or collaboration, these consumers buy timeless pieces that last decades, not seasons.
Embrace Discreet Elegance
Stealth wealth isn’t just a TikTok trend—it’s a longstanding principle among the ultra-affluent. They favor subtlety over show. Quiet luxury brands—those that whisper rather than shout—hold their loyalty because they signal confidence, not a need for external validation.
Seek Private Client Services
Many HNWIs opt for private client experiences—by invitation only previews, exclusive salon appointments, or bespoke tailoring—ensuring discretion, personalization, and a return to the intimate luxury of yesteryear.
Shop Outside the Mainstream
Rather than relying on traditional retail, some luxury buyers seek out estate sales, private ateliers, or direct-from-maker relationships. Others purchase art, antiques, and rare vintage—items with provenance, not marketing campaigns.
A New Definition of Luxury
Luxury is at a crossroads. Brands that continue down the path of inflated pricing and diluted identity risk alienating the very consumers who built their legacy. Those that wish to thrive in the new era must return to first principles—while evolving with the times. Here’s what the next chapter of true luxury must include:
Reinvest in Quality
Luxury must feel luxurious again. That means exquisite materials, masterful construction, and elevated attention to detail—at every price point.
Protect the Aura of Exclusivity
Brands should resist the temptation to overextend. Fewer product drops, tighter inventory control, and exclusive client services can help restore desirability.
Lead with Sustainability
Transparency, ethical sourcing, and circular models aren’t optional. They’re the new pillars of prestige.
Innovate Without Losing Essence
Marrying innovation with heritage ensures brands stay relevant while preserving their unique identity and spirit.
Connect With Purpose
Luxury is no longer just about the product—it’s about how it makes us feel. Brands that offer meaning, story, and soulful experiences will outlast those that merely offer status.
Luxury has always evolved with the times. But in a world where old models are breaking down, the path forward requires courage, creativity, and restraint. To recapture hearts and restore reverence, luxury must remember what made it special in the first place: not just what it costs, but what it means.
