THE DEATH OF MASSTIGE?
Speculation is brewing in the US with the possibility of a recession a reality, that they could go back to the ‘old luxury’ model with only the super rich being able to afford anything…
Using the US as an example: In the past few years, many middle-income shoppers were able to upgrade in an era of easy money. Petrol was cheap, as was credit and there was a ton of cash left over. Luxury companies responded to this ‘left over cash syndrome’ by offering a new class of goods that the not-quite-über wealthy could afford, effectively transforming prestige goods into “masstige.” (prestige for the masses)
Today, that same middle-income shopper is under enormous pressure. Petrol isn’t cheap anymore, credit is hard to come by, and many of the same people who rode the housing train, now see their monthly mortgage payments soaring while home values are plunging. Luxury retailers might have to rethink their strategy as the lower end of the high-end market has almost evaporated. Is Australia next to follow this trend?
Insight: With masstige becoming second nature in our middle-income society, and designer brands going mainstream, we might see a complete makeover of this trend. Will Australia follow the US? Will mass luxury become un-affordable to the everyday shopper? If it is the death of masstige, how will it effect your brand?
