The Psychology Behind Lusting for Luxury

Luxury has long been associated with exclusivity, craftsmanship, and status. But beyond the gleam of designer handbags and the allure of high-end skincare lies a deeper psychological pull.

Why do we crave luxury? Let’s break it down.

#1: BECAUSE YOU DESERVE IT

In a world where burnout is practically a badge of honor, luxury becomes a form of self-care. With constant stress, low wages, and an endless stream of bad news, splurging on something expensive can feel like a well-earned escape.

This phenomenon, known as hedonic consumption, explains why people turn to luxury goods as a way to soothe themselves. It’s that fleeting moment of indulgence where owning a designer piece makes you feel like a celebrity, even for just a second.

Admit it, we’ve all justified a splurge by telling ourselves: “Money will come back. I deserve this.”

#2: KEEPING UP WITH SOCIAL MEDIA

Social media has turned luxury into a never-ending trend cycle. One minute, it’s a Bottega Veneta bag; the next, it’s the latest “It” shoe. Don’t get me started with watches! With influencers flaunting high-end hauls and celebrities celebrating milestones with designer splurges, it’s easy to feel like luxury isn’t just a want.

Platforms like Instagram and TikTok fuel this culture with hashtags like #TreatYourself and aspirational content featuring curated skincare routines, extravagant “galentines,” and designer-filled shopping sprees. The message? Indulgence is essential to self-care.

Image Credits: unsplash.com

#3: LUXURY IS THERAPY

Luxury shopping isn’t always about status as it’s often about emotional regulation. Research by Selin Atalay and Margaret Meloy (2011) found that people in a negative emotional state are more likely to splurge on luxury goods, hoping to boost their mood.

But here’s the catch: while shopping might offer temporary relief, the guilt that follows can sometimes outweigh the initial excitement. Harri T. Luomala’s study (2002) found that excessive spending can ruin an already content state of mind, making it a double-edged sword.

#4: IRRATIONALITY OF LUXURY

Luxury shopping isn’t always rational. A well-made, durable handbag can cost around S$100, yet many willingly drop thousands on a designer version that serves the exact same purpose.

Why? Behavioral psychology suggests that luxury purchases often stem from an emotional rather than logical place. It’s about perceived value, exclusivity, and the status attached to the brand (sometimes more than the actual product itself).

#5: LUXURY AS SOCIAL CURRENCY

Luxury is often more than craftsmanship and quality—it’s a status symbol. Many people buy designer items not just for their design but for the brand’s logo, a clear signal of wealth and success.

The downside? Some stretch their finances thin to keep up with the illusion, falling into debt just to own a coveted piece. Luxury can be aspirational, but for some, it becomes a financial trap.

#6: NEED FOR UNIQUENESS

At its core, luxury is about exclusivity. Being able to afford it already puts you in a minority, making it feel even more special.

Wealthier consumers often gravitate towards brands that exude authenticity and timelessness, reinforcing the idea that true luxury is about more than just a price tag.

IN A NUTSHELL

While there’s nothing wrong with indulging, understanding why we crave these things can help us make more mindful, guilt-free choices. So the next time you feel the urge to splurge, ask yourself: Is it about the product, or the feeling it gives you?

Image Credits: unsplash.com

Sources: 1,2,&  3

Read More...

The Secrets of Luxury Brands

I, too, have felt the guilt of indulging in luxury, whether it is a designer bag, a statement accessory, or high-end makeup. With the hefty price tags, saving up for these purchases is a must. But luxury is not just about the cost.
It is about prestige, power, and perception.

The world’s top brands have mastered the art of desirability, transforming their products into more than just items. They are status symbols. But what really keeps luxury brands on top? Let us pull back the velvet curtain.

TIMELESS APPEAL

Even during the 2007-08 global financial crisis, luxury brands thrived. While other industries took a hit, the allure of high-end goods remained intact. Why? Luxury isn’t just about spending. It is about aspiration. No matter the economic climate, people still crave exclusivity, quality, and craftsmanship.

Image Credits: unsplash.com

POWER OF EXCLUSIVITY

Luxury is defined by rarity. The harder something is to get, the more people want it. High-end brands cultivate this through limited-edition drops, private shopping experiences, and exclusive distribution channels.

Take Burberry in the late 90s. It made the mistake of going too mainstream, flooding the market with accessible products. The result was a decline in prestige and profits. Only after scaling back and re-establishing exclusivity did Burberry reclaim its elite status. Lesson learned. Luxury thrives on limited access.

INFLUENCE OF CLOUT

In luxury, credibility is everything. That is why brands strategically leverage celebrity endorsements and influencer partnerships to reinforce their status. Nordstrom, for example, masterfully integrates influencer marketing to build hype and cultivate desirability. The right endorsement can turn a product into a cultural icon overnight.

HIDDEN ARTISANS OF LEATHER GOODS

Nestled in the hills of southern Spain, the town of Ubrique is far from the fashion capitals of Paris or Milan. No airports, no train stations. Just winding roads leading to one of the luxury industry’s best-kept secrets.

This remote village is where elite brands like Louis Vuitton, Gucci, Hermès, Chanel, and Loewe craft their high-end leather goods. The artisans of Ubrique, known for their meticulous craftsmanship, create the handbags, wallets, and belts that define luxury. Despite its low profile, this tiny town remains an essential hub for the world’s top fashion houses.

EYEWEAR GIANT BEHIND MANY DESIGNER FRAMES

Ever wondered why luxury eyewear from brands like Prada, Chanel, and Versace all seem to have a similar feel? That is because most of them come from the same manufacturer, Luxottica.

Image Credits: unsplash.com

Based in Milan, Luxottica designs and produces eyewear for nearly every major luxury label. It also owns iconic brands like Ray-Ban and Oakley. In short, whether you are buying a pair of Dior or Tiffany & Co. sunglasses, there is a good chance they were crafted under the same roof.

OVERPRICED TAG SCANDAL

Luxury pricing is about more than materials. It is about branding, exclusivity, and craftsmanship. But sometimes, the markups raise eyebrows.

Take Dior’s 2024 controversy. Reports surfaced that a subcontractor was paid as little as 53 euros per bag, while the same bag retailed for 2,600 euros. Dior denied the claims, stating that its pricing aligned with industry standards. True or not, the scandal reignited the debate. Are luxury prices justified, or just a product of brilliant marketing?

IN A NUTSHELL

Luxury brands aren’t just selling products. They are selling dreams. Through exclusivity, influencer power, and strategic pricing, they maintain an aura of prestige that keeps consumers craving more.

Image Credits: unsplash.com

The secret of luxury lies not just in what you buy but in what it represents.

Sources: 1,2, 3, & 4

 

Read More...

How Luxury Brands are Designed to Keep You Poor

Nowadays, there is a collective desire to be more conscientious about our spending habits. This newfound mindfulness manifests in various motivations, including concerns for the environment, alignment with personal values, financial prudence, and even a deliberate resistance to the seductive allure of consumerism. Nonetheless, it’s crucial to recognize that not everyone consistently adheres to these aspirations.

Just take a look at the Singaporeans who are obsessed with luxury goods! In fact, their presence is projected to grow by 3.49% from 2023 to 2028. The demand for luxury goods often surges in tandem with income growth. In times of economic prosperity, people tend to loosen their purse strings, indulging in items they desire rather than truly need.

Luxury goods, by definition, are non-essential items, luxuries that transcend the realm of basic necessity. Let’s take a deep dive into why luxury brands are designed to keep you poor.

PSYCHOLOGY BEHIND LUXURY CHOICES

The allure of luxury items frequently commences with the experiences offered by luxury establishments. Companies adroitly harness emotions to elevate luxury goods beyond mere possessions, fostering an emotional connection between the product and its owner.

Image Credits: unsplash.com

In the age of online shopping, a S$500 scarf is just a click away, rendering luxury goods an enticing option for retail therapy. Furthermore, a sense of accomplishment propels many individuals to splurge on luxury goods, a form of self-reward for hard-earned success, affording something that would typically remain beyond their grasp. I felt the same self-rewarding emotions when I bought my first designer bag.

COST OF EXCLUSIVITY

Distinguished luxury brands like Chanel and Hermes thrive on the concept of exclusivity. They deliberately curtail production or availability, rendering their products challenging to attain and thus highly coveted. This exclusivity taps into consumers’ innate desire to feel unique and possess something rare.

Consider the prestige associated with owning a Hermes Birkin bag, whose price starts from S$13,900; it compels some to lavish spending on items they may not genuinely require or desire. In some cases, brands like Burberry and Louis Vuitton have gone as far as destroying unsold inventory to preserve their aura of exclusivity.

PURSUIT OF EXTERNAL VALIDATION

Humans possess an inherent inclination to seek validation from their peers and correlate their self-worth with the capacity to acquire luxury items. Owning luxury goods becomes a tangible symbol of success and affluence, a means to showcase personal accomplishments.

Brands keenly grasp this dynamic, evident in their offering of mid-priced products adorned with their logos. The proliferation of “flex culture” or “logomania” on social media further fans the flames of this desire for external validation, transforming it into a competitive exhibition of wealth and success.

IRRATIONAL CONSUMER CHOICES

Consumer decisions do not always adhere to the tenets of rationality. A perfectly rational individual would consistently act in their best interest, including their financial well-being.

However, human behavior is innately influenced by emotions, leading individuals to make choices that may not strictly align with rationality and your financial circumstance.

IN A NUTSHELL

Whether driven by a sense of accomplishment, a quest for external validation, or simply to invoke a particular sentiment, individuals may opt to invest in luxury items, irrespective of their financial circumstances.

Image Credits: unsplash.com

These choices underscore the intricate interplay of emotions and motivations that underpin our spending habits. It’s up to you to be mindful when it comes to your luxury purchases.

Sources: 1,2, & 3

Read More...

Why Buying Second-Hand Luxury Items Benefits Your Wallet

Are you tired of feeling deceived by knock-off brands and paying exorbitant prices for fast fashion when shopping online? If that resonates with you, it’s time to delve into the world of luxury resale.

During my recent trip to Japan, I had the opportunity to explore second-hand outlet shops in Osaka and Tokyo. I was pleasantly surprised by the positive reception towards buying second-hand luxury items. The Japanese have an interesting belief that possessions acquire their own spirit over time, which can either bless or haunt their owners. To avoid any potential haunting, they choose to either discard or sell items they have owned for an extended period.

While the thrill of unboxing brand-new items is undeniable, many people overlook the fact that they can still enjoy a fantastic experience while simultaneously making an environmental impact by opting for second-hand goods. Join others in embracing the world of second-hand luxury and discover the incredible benefits it offers, including:

#1: HELP THE ENVIRONMENT

Is it possible to save the environment while you shop? Sustainability has become a key focus for everyone, and purchasing second-hand luxury items is a meaningful way to contribute. Excessive consumption has devastating effects on the environment, as buying new items leads to increased production and strains our resources. Opting for second-hand items indirectly reduces the demand for materials like leather, sending a message to the industry.

Choosing to buy second-hand products actively reduces waste and gives items a second life, lowering our carbon footprint. It’s remarkable how second-hand purchases rescue products that could have ended up in landfills. Contrary to common misconceptions, used items are often in excellent condition and fully functional. Many are sold simply because their owners no longer need or want them, making them valuable finds in the second-hand market.

#2: GET TIMELESS STYLE

The beauty of luxury products lies in their timeless appeal. A dear friend of mine owns a vintage Chanel handbag. Despite being decades old, the bag exudes an air of sophistication and elegance that never goes out of style. The bag’s enduring charm serves as a reminder that investing in second-hand luxury allows you to maintain a refined and fashionable look without the fear of appearing dated.

Whether it’s a beautiful bag, elegant jewelry, or high-end clothing, these items have the remarkable ability to transcend fleeting trends. By embracing second-hand luxury, you unlock a world of style possibilities that stand the test of time.

#3: REDUCE COSTS

Unless you have a well-paying job or exceptional personal savings habits, purchasing luxury consumer goods can significantly strain your finances. Luxury items often come with hefty price tags, but the good news is that buying them second-hand can lead to substantial savings.

It’s important to note that used items can still be in excellent condition. In fact, you can discover luxury brands that look brand new but are available at just half the retail price.

During my trip to Japan, I stumbled upon a pre-loved Gucci Abbey D-Ring Shoulder Bag priced at a mere S$250. Considering that it could easily cost around S$950 in online second-hand stores, this was an incredible deal. It’s quite astounding to think about the steep difference between the discounted price and its full retail value.

#4: SHOP EASILY WITH THE SECOND-HAND MARKET

In the past, one of the major hurdles faced by those interested in purchasing second-hand goods was the limited availability of certain items. This often resulted in compromises when trying to save money or contribute to the environment.

However, the game has changed, thanks to the Internet. Nowadays, you have access to expansive online markets that offer a diverse array of items, making it more convenient than ever to find exactly what you’re looking for.

While local thrift shops remain a viable option, searching through international online platforms presents you with the best saving opportunities and an abundance of options.

#5: DISCOVER NEW OPTIONS

Do you play it safe in fashion? By consistently adhering to safe and conventional choices when purchasing new products, you may inadvertently overlook distinctive items that could perfectly suit your needs.

Whether you have an affinity for luxury clothing or bags, you will be astounded by the hidden gems awaiting your discovery in second-hand shops. The alluring aspect of used items lies in their affordable price, as it enables you to explore beyond your comfort zone without incurring substantial financial burdens.

#6: ACCESS LIMITED-EDITION ITEMS

Buying specific, limited-edition items becomes significantly easier in the second-hand market, especially when it pertains to past limited-edition bags or accessories from your favorite brands. These sought-after items are often unavailable in stores but can frequently be found within the realm of second-hand shopping. Moreover, elusive treasures such as the highly coveted Birkin bag, typically beyond the reach of the average shopper, become more attainable when seeking pre-owned alternatives.

Image Credits: unsplash.com

By wholeheartedly embracing the realm of second-hand luxury, you not only save money but also contribute to environmental preservation, all while unearthing unique treasures that bestow elegance and refinement upon your life.

So, what are you waiting for? Initiate your exploration into the boundless possibilities of second-hand shopping today!

Sources: 1 & 2

Read More...

Meet The Most Expensive COVID-19 Mask In The World

As you rub on the magical lamp, a genie appears. If the genie were to grant you three wishes, what would they be? Will you ask for the most expensive COVID-19 mask in the world? That was the request that Jewelry Designer Isaac Levy fulfilled – with or without a magical lamp. He works in the Israeli jewelry house called Yvel.

He was commissioned to grant three requests: that the mask will comply with the FDA/European safety standards, will be ready by the end of 2020, and will be the most expensive COVID-19 mask in the world. The last requirement was the easiest to fulfill, according to Mr. Levy.

Mr. Levy said that the item was requested by a Chinese billionaire living in the United States of America. Thus, it comes with a price tag of US$1.5 million or S$2 million. Saving face plays an essential part in the Chinese Culture, and a bejeweled mask by Yvel takes this to another level!

This expensive mask may be glamorous, but some may question its practicality. You see, it is expected to weigh about 270 grams or over half a pound. The mask consists of 250 grams of 18-carat white gold, which is embellished with more than 3,600 natural black and white diamonds. This equates to a total weight of 210 carats.

Its physical appearance aside, the mask is set to meet the strict health standards with the current pandemic in mind. Mr. Levy made sure that the mask included an N99 filter. The mask features a hole in one of its gold plates for the filter to sit. In other words, the mask will filter out at least 99% of airborne particles.

The labor-intensive process for this luxurious piece as well as its other requirements entails that this project will not only benefit one man. The Jewelry House Yvel takes pride in hiring predominantly immigrant employees and projects such as this will help them thrive during these tough times.

Mr. Levy went on and said:

“It is the most expensive mask in the world. If there will be another company that will create such a mask and will challenge us, I am sure that we’re going to find another customer to buy a more expensive mask.”

This extravagant mask comes at a time when luxury brands and designers such as Off-White and Emilia Wickstead are offering fashionable face coverings. Moreover, luxury group LVMH (which oversees Louis Vuitton, Givenchy, and Christian Dior) assisted in the production of hand sanitizers amidst the global shortages. They converted three fragrance factories for this purpose.

Whatever happens in the years to come, this mask will serve as a hefty memento of the life-changing pandemic.

Source: 1

Read More...