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The New Era of Luxury: Embracing Status Over 'Stuff' in 2025

Luxury used to be about showing off, but now it's about showing in. Experience is the new diamond, and luxury consumers seek experiences that transcend material possessions, proving that true luxury lies not in what you have, but in who you are and where you've been. 2025 is all about bragging rights, but now it's about bragging about your life, not what you own.


By Daphne Bennett

January 2025

 


In the ever-evolving landscape of luxury, the definition of what constitutes true luxury is undergoing a significant transformation. As we approach 2025, the traditional notions of luxury as mere status symbols are being challenged, with a new paradigm emerging that priorities experiences and cultural access over the ownership of physical goods.


Historically, luxury has been closely linked to the exhibitionist display of wealth, but recent trends indicate that status is now taking precedence over luxury itself. The luxury industry's status as a symbol of exclusivity has waned, largely due to the saturation of digital media that has made luxury items ubiquitous. The allure of high-end products, once shrouded in mystery and scarcity, has diminished as consumers are bombarded with images of designer handbags and luxury cars online, not aided by dupe culture. This cultural over saturation has led to a phenomenon where even the most coveted items lose their mystique, becoming hyper-commodified and easily accessible.


As we look back, the last decade has seen a notable shift in consumer behavior. The Veblen effect, which suggests that higher prices can drive demand, is still relevant; however, the landscape has changed. Old status symbols, once revered for their exclusivity and craftsmanship, have become diluted as brands prioritize profit over narrative. For example, even slow-luxe brands that prioritise craftsmanship like Bruenllo Cucinelli have been appropriated via the old money aesthetic 2024 witnessed. The luxury market has shifted towards creating multiple entry points for middle-class consumers, effectively democratising luxury and, in turn, redefining its essence. When luxury becomes attainable for all, it ceases to be luxury in the traditional sense.


According to the latest report from Business of Fashion and McKinsey & Co., titled "The State of Luxury 2025," the luxury market is facing a significant slowdown, with value creation declining due to overexposure and diminished exclusivity. The challenge for luxury brands lies in appealing to younger shoppers without alienating their older clientele. To navigate this shift, brands must sharpen their long-term strategies, invest in product craftsmanship, develop unique luxury experiences, attract top corporate talent, and explore new categories.



This transformation is particularly evident in the beauty industry, which has emerged as a key status symbol in recent years. Celebrity-driven brands, such as Hailey Bieber's Rhode, was led by Vlahos through its IPO, in which the company received a valuation of $1.44 Billion. Since then the Brand have capitalised on the targeted desire for an idealised appearance, emphasising great skin, hair, and overall aesthetics, surpassing $100 million in 2024. However, even this sector is witnessing a democratization, with access to skincare and cosmetic procedures becoming more widespread. This means that ‘luxury’ consumers are getting closer to looking just like the people we aspire to be, endorsing celebrity aesthetic and looks while conversely starting to look exactly the same.



Source: Rhode
Source: Rhode


In this oversaturated image culture, the new luxury status symbols can not be compressed into the visual realm, they have got to be behavioural. As we move into 2025, luxury brands must adapt to this new reality by prioritising experiences over ownership.


Dedicated social wellness spaces are on the rise as well as clients who are willing to pay exponentially for the luxury wellness stamp of approval. An exemplary case of this evolution is Equinox. This luxury gym chain dotted around the UK and US has given us a masterclass in luxury PR. By now offering a "Veblen" $40,000 membership they enacted earned media value, whereby the value of the brand exposure derived from non paid channel's, Equinox was able to garner hyper-exposure and media coverage which enabled there push into their transition to a wellness lifestyle brand. This shift underscores the importance of experience in the luxury market, marketing towards behaviours not identities, where ownership is increasingly replaced by the pursuit of well-being and personal growth.




Source: Equinox St James
Source: St James Equinox


Moreover, luxury brands are finding innovative ways to engage younger, sober-curious audiences through unique experiences and social media interactions. The Miu Miu Literary Club campaign exemplifies this trend, posted in London Milan and New York, this highlights the luxury of shared experiences offline, fostering a sense of authenticity and connection among consumers. proving that it is fashionable to be intelligent.




Source: NY Miu Miu club
Source: NY Miu Miu club


Source: Inside Milan's Miu Miu club
Source: Inside Milan's Miu Miu club











In conclusion, as we approach 2025, the landscape of luxury is evolving from a focus on ownership to an emphasis on experiences and cultural access. Brands that can adapt to this shift and prioritize the creation of meaningful, engaging experiences will not only survive but thrive in this new era of luxury. The future of opulence lies in the ability to connect with consumers on a deeper level, fostering a sense of community and shared values that transcend the mere possession of material goods.

 

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