Luxury is no longer clear-cut. One shopper buys a handbag for admiration, another buys for anonymity. One seeks attention, the other avoidance.
Once defined by scarcity, craftsmanship, and discretion, luxury now means mass exposure, social media, and status-hungry consumerism.
Today, we see a growing divide between those who buy to signal and those who buy for substance. One flaunts while the other flies under the radar.
We live in a time when a $20,000 bag is either a billboard of self-importance or a quiet affirmation of personal standards.
So, who truly embodies the luxury mindset?
Consider consumers like influencers, reality stars, and new-money elites for whom luxury means competitive visibility.
The logic: If it’s rare and expensive, I must be important.
The later-generation wealthy tend to see luxury differently. For them, it’s about legacy, quality, and restraint. They find overt branding excessive, flashy, or overstated, preferring pieces recognizable only to those who truly know.
Still, these categories aren’t fixed, and many buyers shift between them depending on the context, choosing an ‘It’ bag for a special event while favoring understatement daily. This fluidity reflects a more nuanced relationship with luxury, one that blends social signaling with personal values.
Geography and culture also shape these mindsets. In the U.S., luxury often leans toward visibility and aspirational branding. By contrast, Europe places greater emphasis on heritage, quality, and discretion—though not always in the minimalist sense.
In countries like Italy and France, where fashion is deeply cultural, logo-driven luxury is ubiquitous. A Louis Vuitton bag or Gucci belt doesn’t necessarily signal flash; it’s often seen as normale, a reflection of shared taste and tradition. But it can still feel like luxury has been diluted when it’s so commonly seen.
In parts of Asia, both visibility and subtlety coexist. Younger consumers increasingly favor quieter luxury, yet conspicuous consumption remains a powerful motivator, especially in rapidly developing economies.
These perspectives dictate how brands design, market, and position themselves. For status seekers, limited editions, bold logos, and influencer campaigns drive desire. For taste cultivators, provenance, craftsmanship, and timeless design resonate.
Recognizing this spectrum allows luxury houses to connect across markets and mindsets, without alienating either.
“Luxury is the ease of a T-shirt in a very expensive dress.” — Karl Lagerfeld
Luxury is as much about psychology as it is about income.
Once upon a time, a well-made watch or bag didn’t need a logo. The right people recognized refinement when they saw it. Access wasn’t bought overnight — it was earned over time.
But as luxury entered the mainstream, its traditional markers — price, prestige, even scarcity — began to lose their edge.
Many heritage and emerging luxury brands now operate at the intersection of aspiration and overexposure. What once whispered exclusivity now shouts from billboards and social feeds. In chasing volume, some leading houses risk losing the very perception that once made them luxurious. Yet a handful of heritage brands have resisted the shift, maintaining or strategically engineering scarcity as a central value.
Take Hermès. Once a family-owned saddle maker, it’s now a speculative market unto itself. The Birkin, once a quiet status symbol, routinely trades hands at two or three times retail before delivery. In April 2025, Sotheby’s valued a Himalaya Birkin at over $432,000, a record for leather goods and a reflection of luxury’s evolving mythology.
Rolex has multi-year waitlists. Ferrari sells out limited editions before even announcing them.
But this scarcity-as-strategy is facing scrutiny. Hermès is currently battling a class-action lawsuit in the U.S., accused of forcing customers to purchase other items before being allowed to buy a Birkin. The claim? This isn’t exclusivity, it’s monetized gatekeeping.
So the question is: When does curation cross into exclusion?
In Italy, where luxury is shaped by generational training, artisanal formazione, and an ingrained sense of refinement, we see a different approach—less about managing demand, more about honoring origin.
That’s not to say overt branding isn’t visible; it is, everywhere. But among Italy’s upper classes and design leaders, a quieter code of luxury still holds. It’s a language of culture, not clout.
Brunello Cucinelli, often considered fashion’s philosopher king, built a business not only on tailoring but on values: ethical supply chains, human dignity, and the belief that beauty should elevate, rather than exploit, the human experience.
Loro Piana offers the same with superfine cashmere and invisible branding. To the untrained eye, it’s unremarkable. But to connoisseurs, it’s unmistakable.
Italian luxury jewelry houses, such as Crivelli, Annamaria Cammilli, and Ferri Firenze, also represent a quieter kind of luxury. Their pieces show up on red carpets not because of aggressive PR, but because they embody quality, restraint, and cultural substance.
And what whispers quiet luxury more than natural diamonds? This is the confidence that has defined Italian taste for centuries, and one that feels increasingly relevant now.
Consumers—especially younger ones—are evolving.
A 2023 Bain & Company study found that 64% of Gen Z luxury buyers say fairness and transparency influence brand loyalty more than status. A McKinsey study reported 72% prefer brands that communicate authentically.
The Edelman Trust Barometer (2023) confirms it: 59% of global consumers are more likely to purchase when they trust the brand, regardless of price. Among Gen Z, that number rises to 79%, the highest across generations. Trust, not status, is the new currency.
According to a 2023 BCG x Altagamma report, brands with stricter channel control and fewer product drops generated 28% higher perceived value, not by being louder, but by being more intentional.
Phoebe Philo’s Céline built a cult following not through influencers but by staying consistent. Jil Sander championed radical minimalism long before the ‘quiet luxury’ trend. Belgium’s Delvaux built prestige through patience, not celebrity.
Luxury is more than a product. It’s a mindset. Some people live it quietly and intentionally. They value craftsmanship, heritage, and discretion. For them, luxury is fulfillment, not flash. A family heirloom, diamond jewelry, a hand-crafted watch, these aren’t just objects, but stories.
Others chase it a bit too loudly and competitively. They buy to be seen, flaunting rare items as proof of status. Reality stars, influencers, and aspirational buyers drive this economy, chasing each new drop for the clout it provides.
Most fall in between—drawn to quality, wary of branding; intrigued by exclusivity, yet skeptical of hype.
True luxury is restraint. It’s recognition without performance, and substance over signal.
As consumers grow savvier, luxury brands face new demands. Status alone no longer sells. Today’s buyers want purpose.
They want proof of ethical sourcing, of sustainability, of social values. Technology plays a key role: blockchain, digital passports, and traceability tools are now essentials, not novelties. For natural diamonds, that means documented provenance and cultural meaning.
Experiences matter. A study from Eventbrite found that 78% of Millennials prefer spending on experiences over material goods. This shift is reshaping luxury — from ownership to meaning, from possession to personal expression.
Today, people don’t just ask, “Can I afford this?” They ask, “Does this reflect who I am?”
Luxury is evolving — from aspiration to authenticity. Beyond the monetary value of a product, the future belongs to brands that embody values. Because true luxury isn’t about what you own; it’s about what you refuse to compromise on. Things like time, craft, taste, ethics, and intention. That’s what endures.
For over 50 years and three generations, De Beers Sightholder VD Global (VDG) has been a trusted partner to the world’s leading luxury houses, delivering ethically sourced, fully traceable natural diamonds.
VDG is committed to responsible practices and aligns with global sustainability goals. It specializes in calibrated sizes, matched sets, and fancies, delivering excellence from mine to market.
With headquarters in India and a presence across Europe, North America, Asia, and the Middle East, VDG combines global reach with localized service. The company utilizes cutting-edge platforms like Tracr and Sarine Technologies. These tools enable end-to-end traceability, even at the most granular level.
Email us at: infovdg@vdglobal.in to learn more about our traceability solutions, sustainable sourcing, and direct-to-retailer services.
Disclaimer: This article is for editorial and educational purposes only. The brands mentioned or views expressed do not necessarily reflect those of VD Global.
Featured image: Hermès is being accused of unlawful “tying” in a class action lawsuit in the US (Shutterstock)
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