FT Letter: When a Chanel bag no longer feels shameful

Charlotte Vangsgaard, ReD Associates, Paris

Rana Foroohar is right that the lifestyles of the super-rich reflect a new Gilded Era (“Ultra-rich power the luxury boom”, Opinion, January 23). When will it all end, she asks. Not as soon as you might think.

Last year’s luxury boom was not a reactionary, post-Covid spree — as with the travel industry for example — but rather an indication that luxury is tiptoeing down Maslow’s pyramid of needs and making itself — as luxury does — rather comfortable.

As social scientists, we have seen in our research how the psychological barriers to buying luxury have been eroded as the influencer economy continues to break down old hierarchies and make the once unattainable lifestyles of the super-rich more visible and democratic.

As luxury has entrenched itself so fully into the cultural mainstream, paying £3,000 for a Chanel bag no longer feels ostentatious or shameful — not when the broadcasting of these purchases has become as important as the buying.

The coming recession will naturally squeeze the segment of wealthy consumers somewhat, but we don’t anticipate the drop-off to be so stark — luxury and identity’s roots run deeper than we think.

Gens Z and Y won’t be buying property anytime soon, not as long as house prices continue to soar against wages. Bags from Valentino and Dior, however? Mais, oui. “I saw them on The White Lotus!”

Read on ft.com

Charlotte Vangsgaard

Charlotte is focused on driving social impact in both nonprofit and commercial organizations. Across her diverse set of clients from iconic luxury goods to healthcare, Charlotte specializes in deriving commercial value from a strategy aligned around social possibilities. Today she is also spearheading change management strategies at some of the world’s largest foundations and corporations. All of her client work—as well as her most recent writing—explores innovative ways to apply social science theory to business problems.

Before joining ReD, Charlotte drove projects on poverty alleviation and economic development for the United Nations Development Programme in Cairo and Algiers before moving on to work for the Danish Government and the International Center for Corporate Accountability. She holds an MBA in International Business and Marketing and a Masters in Political Science.

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