Download our new report, What Does Luxury Mean to Consumers?, for a deep dive into the attributes that set luxury products apart across travel, food and retail.
Buying beautifully crafted products, first class travel experiences, and meals with rare ingredients are all luxurious in consumers’ eyes. Beyond the functionality of a product or enjoyment of the experience, luxury also comes part and parcel with signifiers that connote social status and make people feel part of an in-group by sharing rarified air or insider knowledge.
That’s not appealing for most people, at least not when it comes with an eye-popping incremental cost. But, consumers also don’t equate luxury with cost. When asked what attributes define luxury in travel, food, and retail, high cost didn’t rise to the top. Quality did.
Most people don’t believe luxury options are worth the additional cost
Luxury isn’t for everyone. It’s inherently — and often intentionally — unattainable due to financial barriers. But most consumers don’t believe luxury products and services are worth the additional cost at all.
Even luxury buyers, those who have purchased a luxury product or experience in the last six months, don’t necessarily believe that the luxury option is always worth the incremental expense. Just over half (51%) said that the luxury options are usually justified due to higher quality products and experiences. When the standard option gets the job done, it's difficult to justify paying more even if the quality is better.
Millennials are more likely than other generations to buy into the association between luxury and quality. Gen Zers, on the other hand, are most likely to say they’ve purchased a dupe of a luxury product. Dupes often go viral on social media as money saving replacements for high-end products.
Quality connotes luxury across categories
Quality and luxury are nearly synonymous. High-quality products define luxury for retail, while comfort and fine dining equate to luxury in travel. Quality is also paramount for food and beverage products to be seen as luxurious, though rarity or ingredients that are difficult to obtain are of equal importance.
It’s also notable that expense is never the top-ranked attribute denoting luxury. Though of course, the top attributes across categories naturally come with premium pricing.
Among those who say they’ve made a luxury purchase in the last six months, expense is less important as a sign of luxury for food purchases. For retail brands, luxury buyers rank product quality and customer service far higher than other attributes. For travel, comfort, fine dining and high-end accommodations are far more differentiated.
Across generations, quality reigns
Attributes that speak to the quality of a product or service dominate consumers’ definition of luxury across categories and across generations. Some attributes are more important to certain generations than others. For example, millennials rank customer service as a key marker of luxury at higher rates than other generations. For baby boomers, fine dining and high-end hotels are the ultimate idea of luxury.
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