Why Rich People (Sorta) Don’t Wear Luxury

 

Introduction

Luxurious brands like Chanel, Rolex, or Ferrari—names that seem to define wealth and success—come to mind when we think of luxury. However, there's a growing belief that some of the richest people on the planet don't necessarily flaunt their wealth—at least not in the manner that we would anticipate. This blog will examine why wealthy people (kind of) don't wear luxury, dissecting the various tiers of luxury and the interactions between the ultra-wealthy and these groups.

Defining Luxury

The classic definition of luxury is extreme comfort or lavish living. It manifests itself in the realm of fashion and leisure as things that are frequently pricey, upscale, and expertly crafted. These companies, which include Hermès, Gucci, and Louis Vuitton, give prestige and status in addition to goods. Although many associate luxury with riches, the ultra-wealthy are not usually drawn to products with logos printed on them.

The Major Leagues in Luxury

The elite brands in the luxury market are those that have endured for decades or even centuries. Among them are Hermès, which sells Birkin bags for over $10,000, Patek Philippe watches, and custom suits made by Savile Row tailors. These are the labels that the wealthy have used to denote their rank and money, when rarity and fine craftsmanship are more important than mere visibility.

The Minor Leagues in Luxury

Conversely, there are what could be referred to as the “minor leagues” of luxury—high-end brands that are more widely available. Consider companies like Tory Burch, Coach, or Michael Kors. Even though these items are still more expensive than the typical high-street item, they don't have the same exclusivity as the leading luxury labels and are frequently connected to aspirational middle class consumers rather than the extremely affluent.

What Do the 1% Wear?

It's interesting to note that a large number of extremely wealthy people choose modest clothing. The 1% frequently favor custom or niche brands that are well-known in certain circles but unknown to the wider public over eye-catching logos. For instance, Silicon Valley tech billionaires are well-known for dressing simply and frequently without branding, like Bill Gates' jumpers or Mark Zuckerberg's grey t-shirts. "Stealth wealth" is a movement that prioritizes quality over overt luxury branding.

The Luxury Industry During the Pandemic

The COVID-19 epidemic presented substantial hurdles for the luxury sector. Lockdowns and international limitations brought traditional luxury consumption—which is frequently associated with travel, social gatherings, and shopping experiences—to a complete halt. But the need didn't entirely disappear. A few brands changed their strategies to emphasize exclusive releases and online experiences. The pandemic caused the wealthiest people to spend less on designer bags and more on fine art, watches, and even private jets—subtle investments rather than status symbols.

The Middle Class & Luxury

The middle class has historically seen luxury as aspirational. Many middle-class customers still aspire to buy a piece of luxury, such a high-end shoe or handbag, even in the face of an expanding wealth divide. Companies have taken advantage of this by providing more reasonably priced entry-level items that yet bear the brand's prominence. On the other hand, middle-class expenditure on upscale goods usually decreases during recessions.

The Luxury Industry Post-Pandemic

The luxury market has had a notable upturn since the pandemic, particularly among the very rich. Brands started to witness record sales as economies reopened, especially for high-end, exclusive items. Instead of rapid fashion, there has been a shift toward timeless pieces and personal encounters. Aspirational luxury may still be appealing to the middle class, but the wealthy are putting more of an emphasis on exclusivity and quality.

Conclusion

Although many of the richest people in the world don't necessarily prioritize flaunting their wealth through recognizable logos and brands, it is evident that luxury is generally associated with wealth. Rather, they place more emphasis on exclusivity, quality, and craftsmanship—often without the overt signs of luxury. In this way, luxury becomes less about conspicuous shows of wealth and more about thoughtful investments and restrained choices.