New Horizon Media Study Looks at the Changing Landscape of Luxury and Finds that the World of Luxury Has Been Upended in the U.S. and Canada
- Personal Luxury emerges and reflects societal move towards inclusivity, individuality, and personal values –
- Respondents ranked Comfort as the #1 luxury item across the U.S. and Canada -
NEW YORK, Sept. 7, 2023 /CNW/ -- Horizon Media, the largest U.S. media agency according to Ad Age Data Center 2023, today released its latest study -- "New Codes of Luxury: Aspirational Shifts in North America" -- which points to a significant transformation of the luxury narrative in the United States and Canada. A previous Horizon Media report, Inflation Nation, highlighted that a key component of the American Dream is no longer attainable for many: the promise that each generation will fare better than their parents. As a result, people have shifted how they view and value luxury. New Codes of Luxury explores what a broad cut of the U.S. and Canadian populations consider aspirational in 2023 – and what luxury means to those who will likely never reach the wealth of today's 1% or even 10%.
The world of luxury has been upended by a growing resentment of not just the wealthy, but also how their wealth is obtained. Economic challenges, including stark inflation and a widening pay gap, alongside vocal movements from Occupy Wall Street to the more recent strikes in Hollywood, are recalibrating the luxury compass. More than half of people across the U.S. and Canada see necessities like having no debt, owning a home, or having money to retire as luxuries. These numbers rise among younger people, with Gen Z-ers over indexing by 10+pts.
The New Codes of Luxury study finds that while luxury has long been bimodal, there are now three modes of luxury co-existing today – with each characterized by different attributes and appealing to different audiences:
- Traditional Luxury is rooted in opulence and exclusivity — think tony enclaves, expensive jewelry, golf club memberships, and Italian sportscars.
- Contemporary Luxury reflects modern values that favor innovation and sustainability — think cutting-edge technology, electric vehicles, clean wellness, and lifestyle brands.
- Personal Luxury, the more recent mode, is defined by the individual, not brands, in the context of their own aspirations, financial circumstances, life stage, and social world.
Personal Luxury is on the rise; 66% view luxury as an occasional treat, while 34% see it as a daily self-indulgence. This sentiment is stronger among US multicultural audiences, with a 7-point increase, likely due to past feelings of exclusion from traditional luxury. These "everyday indulgers" seek to transform ordinary moments into special ones. It signifies a shift from exclusive Traditional Luxury to a more inclusive mindset. Nearly half of people (44% ) believe luxury is an intangible and subjective feeling. For luxury brands to resonate, understanding individual customer definitions of luxury is crucial.
Respondents across the U.S. and Canada ranked Comfort as their top luxury attribute, consistently placing it at #1 in all surveyed categories, including Travel, Dining, Fashion, Groceries, Wellness, Auto, and Tech.
"In a world filled with uncertainty – whether global pandemics, mass shootings, war, climate events, inflation, economic uncertainty and beyond – comfort is now aspirational, and understanding what worries people will help brands lean into how they can help people find comfort in ways big and small," said Maxine Gurevich, SVP of Cultural Intelligence of Horizon Media's WHY Group. "This is critically true for luxury brands wanting to market to Gen Z, who are experiencing the most turmoil and therefore are looking for comfort and support in the brands with which they interact."
To see the full study results, visit https://horizoncatalyst.com/new-codes-of-luxury-aspirational-shifts-in-north-america.
Survey Methodology:
Horizon Media employed multiple research approaches including desk research, a robust audit of luxury cultural signals across business sectors, a semiotic analysis of luxury "codes" and aesthetics, and a proprietary study of 2,000 adults 18+ in the U.S. and Canada (English and French), weighted to be representative of age, ethnicity, region, and income.
Horizon Media
Horizon Media, Inc, the largest U.S. media agency according to Ad Age Data Center 2023, delivers data-driven business outcomes for some of the most innovative and ambitious brands. Founded in 1989, headquartered in New York, and with offices in Los Angeles and Toronto, the company employs 2,400 people and has media investments of more than $8.5 billion. Horizon Media's fundamental belief is that business is personal, which drives its approach to connecting brands with their customers and engaging with its own employees resulting in industry-leading workplace satisfaction levels (Glassdoor). The company is consistently recognized by independent media outlets for its client excellence and has earned several "Best Workplaces" awards reflecting its commitment to DEI and the life and well-being of everyone at Horizon Media.
SOURCE Horizon Media
Dan Prince, [email protected]
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