Identity, belonging and well-being. The new challenge for luxury brands
Once upon a time they only represented the purchasing potential of consumers. Today they must reflect authenticity and a sense of community. Without losing the ability to innovate
Article by Grace To published on Sistemi&Impresa
Owning a home, enjoying job security, raising a family, and being able to afford leisure activities were once standard markers of middle-class life. Today, these aspects often seem like a fantasy for many Millennials and members of Generation Z. Nonetheless, the desire for social mobility and personal expression remains strong: it has simply evolved. As economic pressures increase, a new form of luxury is emerging. It's not about the opulence associated with brands like Hermès or yacht-filled lifestyles, but rather a more subtle, curated experience that resonates emotionally with people and redefines consumption. Middle-class luxury is not a contradiction: it is a socioeconomic response, a cultural phenomenon and a revolution in branding. The definition of the middle class has become increasingly ambiguous. Wage stagnation, inflation and rising inequality have weakened the economic foundations of many Western societies. In the United States, for example, the average Millennial family has significantly less housing equity than previous generations at the same age. Nonetheless, luxury brands continue to thrive, albeit in a different context than we once understood. Today's middle class is defined less by income and more by cultural capital. Many individuals may not have traditional wealth, but still seek identity, community and recognition. This aspirational desire has become fertile ground for a new kind of luxury: emotionally rewarding, culturally relevant and socially visible.
Luxury for the masses
Middle-class luxury brands find themselves at the crossroads of aspiration and affordability. These brands are often affordable, yet highly desirable. Examples are Telfar, Glossier, Polène and even Rummo pasta. They convey a sense of care, taste and cultural relevance, without requiring extreme wealth. Harvard Business Review defined this trend 20 years ago as “luxury for the masses,” but in the 2020s it has evolved further, influenced by social media, nostalgia and the hyper-individualism of consumer habits. These brands don't just sell products, they offer a sense of belonging, lifestyle and self-esteem. What sets these brands apart is not their quality or exclusivity, but their emotional resonance. Consumers no longer simply buy objects, but a narrative. Today, brands implement strategies that transform consumption into a means of self-definition. One of the most common approaches is private labeling, i.e. store-owned or white-label products, which are repurposed with a boutique aesthetic to create the illusion of scarcity or exclusivity. This is followed by nostalgia and regressive design, which uses retro images, minimalist packaging and collaborations with cartoons to evoke familiarity and comfort, leveraging emotional consumption. Another approach involves cultural collaborations, such as those between creative directors and niche internet personalities, that help brands stay relevant and build symbolic capital and social clout. The approach to microtrends and quiet luxury is characterized by a minimalist, unbranded aesthetic that signals sophistication and restraint, key components of the visual code of 'stealth wealth'. Finally, social-first commerce on platforms like TikTok and Instagram, combined with influencer-driven content, transforms products into performances, making even a $30 cleanser or a seven-dollar oat milk aspirational.
Luxury in the food industry
This branding logic is not only limited to fashion and beauty, but has also permeated sectors that were previously resistant to lifestyle branding. A clear example is the food industry.
Middle class values are reshaping the way food is packaged, priced and marketed. Items that were once considered practical, convenient and ordinary have been transformed into aesthetic, emotional and cultural products. For example, pasta brands like Barilla, which used to be a staple in many households, are now overtaken by competitors like Rummo. Rummo emphasizes artisanal drying methods, regional pride and visual appeal. Consumers choose these brands not only for their quality, but because they represent taste, sophistication and lifestyle. Other brands follow a similar trend. Magic Spoon sells cereals with a focus on nostalgia and well-being. Oatly has redefined oat milk as a design object. Even brands like Sanzo, which offers sparkling water, or Ghia, which offers canned cocktails, promise more than just refreshments: they offer a curated identity. Grocery store shelves increasingly resemble lifestyle catalogs as middle-class consumers apply the principles of luxury branding to their everyday choices. What you eat, how it is packaged and where it comes from have become a status symbol: food has become a form of fashion.
Realign corporate branding
This change is driven by a significant realignment in corporate branding. Conglomerates such as LVMH, L'Oréal and Unilever are acquiring or developing 'mid-market' brands that combine cultural significance and mass appeal. By using house-of-brand strategies, these companies can maintain luxury prestige while reaching younger, more aspirational consumers. For example, Louis Vuitton's recent investments in Birkenstock and Polène illustrate this trend. L'Oréal's portfolio now includes brands such as Aesop, CeraVe and Galderma. These acquisitions reflect a strategy that goes beyond simple product diversification; they focus on controlling cultural relevance in various market segments. Historic companies are increasingly focusing on the changing preferences of different generations, recognizing that the middle class consumer represents the future of luxury. This transformation is also influenced by geographical and cultural differences. In China, clear status signals, such as logos, heritage and exclusivity, play an important role in luxury marketing. However, in Western markets, especially following the pandemic, there has been a shift towards self-care, discretion and emotional intimacy. Luxury is now perceived as quiet, introspective and more accessible. As China's luxury markets mature and Western consumers face greater economic uncertainty, brands are adapting their messaging. The challenge is to be inclusive enough for middle-class shoppers without compromising their prestige. With branding taking center stage, a deeper tension emerges. When each product is curated, aesthetically designed and emotionally charged, the line between substance and spectacle begins to blur. Some consumers are starting to question the authenticity of all this. The Dupe economy has exploded not only because people want cheaper alternatives, but because the originals often lack true innovation. Branding is everywhere, but finding authentic meaning is becoming increasingly difficult.
Consumption as identity
Beneath this change lies a quiet identity crisis. With traditional markers of personal fulfillment slipping out of hand, people are turning to brands for reassurance, recognition and a sense of control. Consumption becomes an indicator of identity. Brands, in turn, meet this need by creating carefully crafted stories and emotionally resonant images. The underlying message is clear: “Buy this and become someone”. This phenomenon isn't necessarily sinister: it reflects a broader cultural evolution in how identity is shaped and expressed. However, it also reveals the extent to which the market has moved from serving needs to shaping desires. Middle-class luxury is not just a passing consumer trend, but illustrates how capitalism adapts to structural and emotional changes. It not only commodifies what people want, but also what they crave: to feel seen, to belong, and to live well. As brands increasingly blur the lines between accessibility and aspiration, consumers find themselves navigating a paradox. They don't buy luxury to feel rich, but to feel normal. And perhaps this is the most eloquent form of luxury of all.