The Cost of Luxury: Is It Still Worth It?

Luxury comes at a price—but is it still worth it? Explore the value behind high-end brands and decide if the prestige, quality, and experience justify the cost.

Luxury remains attractive today for the quality, exclusivity, and prestige that it represents. However, consumer values are changing, and the worth of luxury is being tested by high-quality substitutes. True luxury is worth something, provided it possesses lasting value, meaning, and personal gratification.

Luxury has always been associated with prestige, craftsmanship, and rarity, so one designer handbag luxury watch, or high-end car is a way of demonstrating status and achievement. But as increased exposure to quality substitutes and the values of consumers toward experiences, sustainability, and functionality, then asks—is luxury worth it?

The evolving definition of luxury

Luxury is never only a possession; it is indeed a rarefied experience and personalization. Where before clients desired overproduced luxury goods, now, bespoke offerings, limited-edition collaborations, and customized items are in high demand. Consumers are willing to pay extra for something perceived to be theirs, be it a bespoke suit, a custom-designed handbag, or even a private dinner with a Michelin-starred chef. These changes suggest that modern luxury has become very much about experiencing something important, personal, and exclusive, not something ostentatious.

What are you paying for?

The price of luxury goods is relatively high. But what exactly makes them so exorbitantly priced? Oftentimes, it is the product but also a considerable amount of the cost goes to the name of the brand, along with the history and marketing that is created surrounding it. Luxury brands would once again highlight their immaculate craftsmanship, high-quality materials, and meticulous processes that make them different from mass products.

But now, with improvement in manufacturing, the gap in quality between the middle-tier brands is closing. Compelling substitutes are now available at a fraction of the price of fast fashion behemoths and direct-to-consumer brands, so maintaining the prices of luxury brands in the stratosphere is becoming tougher. Then are you purchasing high quality, or is it just the germ of a logo that you are paying for?

The psychology of luxury spending

Luxury is not just having an object; it's also the feeling attached to it. Research has also established that the purchase of luxury goods activates pleasure centers in the brain, giving feelings of accomplishment, status, and sometimes confidence. Wearing a luxury watch or carrying a designer bag makes one feel extremely powerful, respectable, and socially accepted.

But consumer behavior is changing. The younger generations, especially the Millennials and Gen Zs, realize that they are increasingly valuing experiences over things. Many have the feeling that spending upward of a few thousand dollars on one item would probably be better spent on traveling, learning, or investing.

The dawn of 'quiet luxury'

For a long time, gaudy signature logos ruled in terms of luxury. It was a status symbol to have a monogrammed Louis Vuitton bag or a Gucci belt flaunting a big logo. But it's now going to "quiet luxury"-all about having that understated elegance rather than obvious branding. Steups.

Quiet luxury is about high classy, timeless pieces so well crafted that only the eye of the aficionado can spot them: cashmere coats by Loro Piana, unbranded leather totes from Bottega Veneta, minimalist watches from Patek Philippe. All of which point to a very new type of luxury consumer- one who appreciates craftsmanship and design but doesn't feel the need to get heretically flaunted wealth.

Maxene | Mar 21, 2025