Expensive material possessions, ostentation and handbags with large logos remain a constant, but the “new luxury” moment promises to encompass even more customized, exclusive experiences, well-being, and sustainability. This new concept of luxury takes shape in brands and stores focused on hobbies, with visual aspects that connect with fandoms and opinion makers. Some even say that it’s silent and discreet – the famous “quiet luxury.” The fact is that luxury has multiple facets and contradictions that, obviously, permeate socioeconomic and cultural factors and various identity and image codes that oppose the concept of luxury itself.
Recently, Mark Zuckerberg, the CEO of Facebook, Instagram, and WhatsApp, was spotted wearing a Balmain t-shirt that costs more than a US$ 1,000, while on vacation in Ibiza with his wife. A stylist told Business Insider that the move could be part of a strategy to “make him seem like a more approachable, fun guy.” Until then, the owner of Meta had been living “quiet luxury,” a trend that points to a fashion style without excesses. Made popular by by the HBO Max series “Succession,” #quietluxury has already accumulated more than 89 million views on TikTok.
On the other hand, ostentatious luxury continues to rise, and sometimes characterizes “the new rich.” That style became known in Brazil by soccer players, but also gained new traction with the funk music videos created by Konrad Cunha Dantas, known as Kondzilla, which highlight designer clothes, jewelry, drinks and luxury cars among young people in the shantytowns. In February, MC Daniel, known as Falcão do Funk, made his debut at Milan Fashion Week by walking for designer Philipp Plein. On the occasion, the artist, the first in the funk and trap style to model for the brand, celebrated this notorious “burst the bubble moment,” as he called it.
And what does the future say about luxury?
In its predictions for 2025, WGSN, the global trend-focused company, says that the current polycrisis of concepts will lead young consumers to redefine what luxury is, giving rise to four new luxury codes. They are:
- Collection culture: Financial nihilism is inspiring young people to buy exclusive and rare fashion items as micro-investments. Considering that only 41% of the American Gen Z population expects to own their own home, they are choosing to spend their money on other luxuries, such as collectable fashion items. In its 2023 report, Sotheby’s recorded a historic 35% annual increase of art buyers aged 20 and under. In Europe, 15% of Generation Z invests in luxury fashion and exclusive streetwear pieces.
- OIYK Knowledge: with the normalization of niche communities in 2025, the avant-garde public will seek new and exclusive information and forms of entertainment, causing a transformation of the “If You Know, You Know” trend, to “Only If You Know”, or “Only for those who know” (OIYK), in which extreme insider and niche cultural knowledge will become the new luxury.
- Traditional instead of fads: rising inflation is limiting modern celebrations and new items from the reach of many young people, causing greater interest in traditional items and practices. A key strategy to boost luxury products and services will be a focus not just on aesthetics, but also on the values behind cultural traditions – especially in Asia.
- Food as symbols of luxury: with the emergence of independent gastronomic platforms, such as the British DELLI, and trendy supermarkets, such as Erewhon, in Los Angeles, and Pop Up Grocer, in New York, food and restaurants are becoming a form of self-expression, and young consumers are displaying their purchases as a reflection of their values and cultural identity. And young people are gourmets and adventurers. Compared to other generations, Americas Gen Z is 21% more likely to try new drinks and 11% more likely to try new foods every month.
The change is also a reflection of socioeconomic, political, and environmental challenges, which caused changes in consumer priorities, especially in younger generations which have sought a lifestyle that values individuality and purpose.
It is important to truly adhere to ESG and not just as a window dressing. According to a Nielsen report, 66% of global consumers are willing to pay more for sustainable brands. In Brazil, this trend has been growing. A survey by Euromonitor International showed that 37% of Brazilians consider sustainability a decisive factor when purchasing luxury products.
Unique and Personalized Experiences
It’s not just about having item X or Y. Consumers want unique experiences. Gastronomic experiences, intimate shows and presentations, exclusive trips, tailored services that value fun and hobbies are examples of how new luxury manifests itself. An American Express study reveals that 72% of millennials prefer to spend money on experiences rather than material goods. In Brazil, luxury tourism has grown 8% yearly, according to data from the Brazilian Association of Tour Operators (Braztoa).
And new luxury is intrinsically related to well-being and quality of life – a trend that has been on the rise since 2020 following the Covid-19 pandemic. And in this combo, products and services that promote mental and physical health are on the rise – the boom in runners, cyclists and the famous mugs that keep drinks cold are some examples. The global wellness market reached USD 5.6 trillion between 2020 and 2022. The data comes from the Global Wellbeing Economy, from the Global Wellness Institute (GWI), which predicts that the sector will reach USD 8.5 trillion by 2027.
In Brazil, the well-being industry generates around BRL 300 billion yearly, according to Sebrae. Obviously having a fast and spacious car continues to be an imposing item. However, new luxury is no longer defined solely by price or material exclusivity, but by the ability to deliver expressive, sustainable, and personalized experiences. Authenticity, purpose, and well-being need to be in the narratives we want to tell. And emotional connection is one of the most important tactics in the communication market.
