Deluxe

1. Luxury's Essence: From Craftsmanship to Mass-Market Aspiration

Luxury has lost its luster.

Historical Roots. True luxury was once defined by handcrafted pieces, superior quality, and a tradition of excellence, catering to an elite clientele. Brands like Louis Vuitton, Hermès, and Cartier began as small artisan shops, creating beautiful wares for royal courts and aristocrats.

Shift in Focus. Over time, corporate tycoons transformed these houses into global brands, prioritizing profit over craftsmanship. The focus shifted from the product itself to what it represents: status, aspiration, and belonging.

Democratization of Luxury. To reach a wider audience, luxury companies adopted strategies like lower-priced accessories, expanded retail networks, and aggressive marketing. This "democratization" diluted the exclusivity and undermined the original essence of luxury.

2. The Rise of Luxury Conglomerates: A Shift in Power and Priorities

What I like is the idea of transforming creativity into profitability. It’s what I like the most.

Corporate Takeover. Tycoons like Bernard Arnault acquired luxury companies, turning them into brands within larger conglomerates. This shift brought business acumen but also a relentless focus on profitability and shareholder value.

Homogenization and Standardization. To maximize efficiency and reach, conglomerates standardized stores, products, and marketing strategies. This homogenization eroded the unique character and individuality of each brand.

Financial Pressures. Publicly traded luxury companies face constant pressure to deliver quarterly profit increases. This pressure often leads to cost-cutting measures, such as using inferior materials and outsourcing production, further compromising quality.

3. Globalization of Luxury: Homogenization and the Quest for New Markets

Luxury is crossing all age, racial, geographic and economic brackets.

Japanese Influence. The Japanese market played a pivotal role in shaping the globalization of luxury. Their love for Western brands and emphasis on conformity led to the mass production and logo-driven designs that became hallmarks of the industry.

Global Expansion. Luxury companies expanded their retail presence worldwide, opening stores in major cities and tourist destinations. This expansion aimed to capture new markets and cater to the growing ranks of wealthy consumers.

Emerging Markets. China, India, and Russia have become key markets for luxury brands. These countries offer vast potential for growth, but also present challenges in terms of cultural differences, counterfeiting, and ethical considerations.

4. Celebrity Influence: The Red Carpet as a Marketing Battlefield

The way we dress reflects not only our personality but also our economic, political, and social standing and our self-worth.

Hollywood's Embrace. Luxury brands recognized the power of celebrity endorsements and began dressing stars for red carpet events. This strategy provided invaluable publicity and helped associate brands with glamour and aspiration.

Stylists as Gatekeepers. Celebrity stylists emerged as key players in the luxury ecosystem, curating looks and influencing brand choices. This created a new dynamic, with stylists wielding significant power over designers and brands.

Ethical Concerns. The pursuit of celebrity endorsements has led to questionable practices, including bribery, pressure tactics, and a focus on short-term gains over long-term brand integrity.

5. The Seduction of Scent: Perfume as an Accessible Luxury

Luxury is a necessity that begins where necessity ends.

Perfume's Role. Perfume has long served as an entry point to luxury brands, allowing consumers to own a small piece of the dream. It also provides substantial profits for luxury companies.

Mass Production. To maximize sales, luxury brands have expanded their perfume lines and introduced lower-priced eau de toilettes and body products. This has made perfume more accessible but also diluted its exclusivity.

Synthetic Ingredients. To cut costs, many luxury perfumes now rely heavily on synthetic ingredients, sacrificing the complexity and richness of natural essences. This has led to a decline in the overall quality and artistry of perfume creation.

6. Handbags as Status Symbols: The "It" Bag Phenomenon

The way I define luxury isn’t by fabric or fiber or the amount of gold bits hanging from it. That’s an old definition. For me, luxury is about pleasing yourself, not dressing for other people.

Handbags as Icons. Luxury handbags have become potent symbols of status and aspiration. The "It" bag phenomenon, driven by marketing and fashion magazines, has created a frenzy among consumers to own the latest must-have accessory.

Profit Margins. The markup on handbags is significantly higher than on other luxury goods, making them a key driver of revenue for luxury companies. This has led to a focus on producing and promoting handbags over other product categories.

Conspicuous Consumption. The emphasis on logos and brand recognition has turned handbags into displays of wealth and social standing. This conspicuous consumption has overshadowed the original values of craftsmanship and quality.

7. The Dark Side of Luxury: Counterfeiting, Exploitation, and Ethical Compromises

War destroys man, but luxury destroys mankind; at once corrupts the body and the mind.

Counterfeiting's Impact. The counterfeiting of luxury goods has become a massive global industry, funding illicit activities such as drug trafficking, human trafficking, and terrorism. This undermines the integrity of luxury brands and poses a threat to society.

Exploitation of Labor. To cut costs, some luxury companies have quietly outsourced production to developing nations, where workers are often exploited and paid meager wages. This raises ethical concerns about the treatment of labor in the luxury supply chain.

Moral Compromises. The pursuit of profit has led some luxury companies to engage in questionable practices, such as selling products to Nazi officers during World War II or turning a blind eye to illegal activities in their stores.

8. The Allure of "New Luxury": Authenticity, Craftsmanship, and Personalization

Luxury is a necessity that begins where necessity ends.

Backlash Against Mass-Market Luxury. Some consumers are seeking alternatives to the mass-produced, logo-driven products that dominate the luxury market. They are drawn to brands that offer authenticity, craftsmanship, and personalization.

Emphasis on Heritage and Storytelling. New luxury brands emphasize their history, values, and the stories behind their products. They focus on creating a connection with consumers based on shared values and a sense of community.

Customization and Bespoke Services. To cater to individual tastes, some luxury brands offer made-to-order products and personalized services. This allows consumers to create unique items that reflect their personal style and preferences.

9. The Rise of Fast Fashion and Designer Collaborations: Luxury's Response

Luxury is the ease of a T-shirt in a very expensive dress. If you don’t have it, you are not a person used to luxury. You are just a rich person who can buy stuff.

Fast Fashion's Influence. The success of fast fashion companies like H&M and Zara has forced luxury brands to adapt their strategies. They have shortened production cycles, increased the frequency of new collections, and collaborated with designers to create more accessible lines.

Designer Collaborations. Luxury brands have partnered with fast fashion retailers to create limited-edition collections that offer high-end designs at affordable prices. This has allowed them to reach a wider audience and generate buzz.

Blurring of Lines. The collaboration between luxury and fast fashion has blurred the lines between the two segments. This has raised questions about the value and exclusivity of luxury brands.

10. The Future of Luxury: A Return to Exclusivity and Ethical Practices

If you would abolish avarice, you must abolish its mother, luxury.

Reclaiming Authenticity. The future of luxury may lie in a return to its original values: craftsmanship, quality, and exclusivity. This involves focusing on creating exceptional products that are made with care and attention to detail.

Ethical Sourcing and Production. Consumers are increasingly concerned about the ethical implications of their purchases. Luxury brands that prioritize fair labor practices, sustainable materials, and environmental responsibility will be better positioned to succeed.

Personalization and Experiences. The new luxury will be about creating unique and memorable experiences for consumers. This includes offering personalized services, custom-made products, and exclusive events that foster a sense of community and belonging.

Last updated: April 7, 2025