It is within this divide that the contemporary luxury sector is experiencing one of its most profound transformations. It's not true, at least not entirely, that luxury is thriving undisturbed. Data shows a global slowdown in the sectorBut the crucial point is another: luxury is not slowing uniformly. The "aspirational" segment is suffering the most, while ultra-luxury continues to hold its ground. And this dynamic increasingly resembles the economic structure of Western societies: a polarized society, where the center is shrinking. According to reports by Bain & CompanyThe luxury sector is experiencing one of the most challenging times in the last fifteen years. The personal luxury market is slowing, average consumers are reducing their purchases, and many brands are facing a decline in demand. Yet, at the same time, the high-end segment continues to maintain very high margins and spending power. This is a sign that the crisis isn't affecting everyone equally. The most effective metaphor used by analysts is that of the "hourglass market"Low-cost consumption is growing at the bottom, premium consumption is holding up or gaining traction at the top, while the middle segment is losing ground. It's a formula that perfectly describes not only luxury, but the entire contemporary economy. In recent years, the European middle class has significantly lost purchasing power. In Italy, according to various economic analyses, real wages have suffered a sharp erosion due to inflation and wage stagnation. The number of families forgoing non-essential consumption is growing, job insecurity is increasing, and the economic horizons of younger generations are shrinking. In this context, luxury is changing: it is no longer a relatively widespread phenomenon and is once again becoming a sign of social separation.
To understand this transformation we need to remember what luxury was in the 2000s
For about twenty years, the sector had been undergoing a phase of democratization. Major brands had expanded their audiences through entry-level products: designer sneakers, small accessories, cosmetics, perfumes, capsule collections. Luxury was no longer just about absolute exclusivity; it had become mass aspiration. Instagram and digital culture accelerated this process: millions of people could symbolically participate in the luxury universe even without belonging to it financially. After the pandemic, something changed. Major brands began to aggressively raise prices. In just a few years, some iconic bags increased in value by 60 or 80 percent. The goal is not simply to offset costs or preserve margins: it's to redefine exclusivity. Many brands understand that the aspirational mass market is becoming fragile and are deciding to focus on rarity again. It's a form of commercial neo-elitism. The most recent analyses show that the sector is losing millions of occasional or aspirational consumers, while maintaining a strong appeal to the super-rich. In other words: luxury no longer grows thanks to social expansion, but thanks to the concentration of wealth. This phenomenon is part of a broader economic dynamic described by economists as: Thomas Piketty and Gabriel ZucmanGlobal wealth tends to concentrate in the upper echelons of the population. If capital increasingly accumulates in the hands of a minority, then luxury also changes audience. It becomes less "social" and more oligarchic.
But contemporary luxury is not just an economic question
Thorstein VeblenAt the end of the 19th century, he spoke of "conspicuous consumption": the display of wealth as a means of social distinction. Today, that mechanism has been enormously amplified through social networks. In an era marked by precariousness, economic anxiety, and instability, the public visibility of wealth is paradoxically growing. Luxury cars, exclusive vacations, five-star hotels, gourmet restaurants, and high-end shopping become daily content, constantly displayed and shared. The contemporary paradox is this: just as luxury becomes less accessible, its symbolic presence is increasing. Digital platforms have transformed exclusivity into a permanent spectacle. Wealth is no longer simply possession; it is public performance. This has a profound cultural effect, especially on younger generations. Gen Z often lives in a more fragile economic situation than previous generations—low wages, housing insecurity, and difficulty accessing property—but they are immersed in a visual ecosystem dominated by the aesthetics of luxury. TikTok and Instagram make the luxury lifestyle ubiquitous, even for those who cannot afford it. Luxury thus becomes simultaneously desirable and unattainable.
Gamification of exclusion
It arises when young people symbolically participate in the luxury universe through content, aesthetic imitations, micro-purchases, or second-hand goods, while remaining financially excluded from true elite consumption. It is an ambiguous relationship, one of fascination and social distance. Meanwhile, luxury itself is changing shape. High-net-worth individuals are progressively shifting spending from objects to experiences. High-end hospitality, exclusive wellness, premium travel, luxury cruises, and Michelin-starred restaurants are growing. A luxury good is no longer simply something you own: it's something you experience. This transformation also reflects a new social hierarchy. In the age of digital reproducibility and fast fashion, objects can be imitated; exclusive experiences much less so. A private vacation, a remote resort, an intimate event, or an ultra-personalized service retain a rarity that objects are increasingly at risk of losing. This is why contemporary luxury appears increasingly tied to the idea of access. It's not just about having money: it's about being able to enter spaces, circuits, and relationships that remain closed to the majority. Luxury is once again becoming a system of symbolic separation. Yet it would be wrong to view this phenomenon solely as a triumph for the industry. Global luxury is also experiencing a period of uncertainty: China, aspirational consumption, and part of the European market are slowing. Many brands are seeking new strategies to maintain their middle-market audience: small accessories, cosmetics, entry-level products, and pop collaborations. It's an attempt to remain culturally relevant even as affordability declines. The contradiction remains. On the one hand, luxury is slowing; on the other, it continues to represent one of the most resilient sectors of the global economy. But perhaps the crucial point is that luxury is no longer the exception to the social crisis: it is one of its most visible manifestations. The growth of ultra-luxury within increasingly unequal societies tells us something profound about contemporary capitalism. Where the center shrinks, the extremes strengthen. And luxury, more than just a market, becomes the visible symbol of this new social geography.
