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Depending on your definition of very wealthy, a lot of luxury spending over the last decade is not from actual ultra rich, but mostly the middle class trying to

by medion 2y ago

Depending on your definition of very wealthy, a lot of luxury spending over the last decade is not from actual ultra rich, but mostly the middle class trying to signal something.

pineaux 2y ago
LMVH is very succesfull in selling luxury to the middle and lower classes. They really found a growth market there.
Ekaros 2y ago
Problem with selling to ultra-rich is that there isn't actually very many of them. On other hand there is plenty of middle-class and even lower class that are ready to sacrifice other things for specific signal... So targeting them makes lot more sense.
- chasd00 2y ago
  Plus, a fool and their money are soon parted.
arethuza 2y ago
The "ludicrously capacious bag" thing in Succession makes fun of this very point - Tom (who is from a relatively modest background and therefore sensitive about such things) makes fun of Greg's girlfriends bag: https://www.theguardian.com/fashion/2023/mar/30/succession-burberry-bag-bridget https://www.theguardian.com/fashion/2023/mar/30/succession-b...
VirusNewbie 2y ago
I'm in a weird bubble, because I don't know anyone in my friend group who does this, despite most of my friends in their late 30s early 40s being successful tech professionals. Many have bought fancy houses (and some modest houses), a lot of them have nicer cars, but I literally don't know anyone who would fit the 'upper middle class' definition who spends money on high fashion, expensive watches, high end wine, etc. The only people I know in my extended circle who buy that sort of thing either have many millions liquid from successful tech exits (as in, coudl retire) or inherited millions.
- throwaway2037 2y ago
  Can I ask a daring question? Are all of them men? What about their spouses? Do they still work and how do they spend their husband's money? One thing that I have noticed about the new rich: They might not buy Hermes bags (yet), but they overspend on everything -- groceries, dining, housing, cars, schools, vacations. It adds up fast, and their net worth is surprisingly small.
  - VirusNewbie 2y ago
    > Are all of them men? What about their spouses? No. Many are, but I know some fairly successful tech women who worked at FAANGs and made great money as well. >but they overspend on everything -- groceries, dining, housing, cars, schools, vacations. Yes, I guess I was trying to say that in tech focused circle in SoCal, traditional status symbols take a back seat to upgraded houses, vacations, and dining. I don't know friends who buy themselves a rolex or fancy handbag if they get a huge bonus. They might treat themselves or friends to a high end dinner or a nice vacation instead.
    - throwaway2037 2y ago
      I still think this is important anec-data. Thank you to share!

by medion 2y ago

Depending on your definition of very wealthy, a lot of luxury spending over the last decade is not from actual ultra rich, but mostly the middle class trying to signal something.

pineaux 2y ago

LMVH is very succesfull in selling luxury to the middle and lower classes. They really found a growth market there.

Ekaros 2y ago

Problem with selling to ultra-rich is that there isn't actually very many of them. On other hand there is plenty of middle-class and even lower class that are ready to sacrifice other things for specific signal... So targeting them makes lot more sense.

chasd00 2y ago
Plus, a fool and their money are soon parted.

arethuza 2y ago

The "ludicrously capacious bag" thing in Succession makes fun of this very point - Tom (who is from a relatively modest background and therefore sensitive about such things) makes fun of Greg's girlfriends bag: https://www.theguardian.com/fashion/2023/mar/30/succession-burberry-bag-bridget https://www.theguardian.com/fashion/2023/mar/30/succession-b...

VirusNewbie 2y ago

I'm in a weird bubble, because I don't know anyone in my friend group who does this, despite most of my friends in their late 30s early 40s being successful tech professionals. Many have bought fancy houses (and some modest houses), a lot of them have nicer cars, but I literally don't know anyone who would fit the 'upper middle class' definition who spends money on high fashion, expensive watches, high end wine, etc. The only people I know in my extended circle who buy that sort of thing either have many millions liquid from successful tech exits (as in, coudl retire) or inherited millions.

throwaway2037 2y ago
Can I ask a daring question? Are all of them men? What about their spouses? Do they still work and how do they spend their husband's money? One thing that I have noticed about the new rich: They might not buy Hermes bags (yet), but they overspend on everything -- groceries, dining, housing, cars, schools, vacations. It adds up fast, and their net worth is surprisingly small.
- VirusNewbie 2y ago
  > Are all of them men? What about their spouses? No. Many are, but I know some fairly successful tech women who worked at FAANGs and made great money as well. >but they overspend on everything -- groceries, dining, housing, cars, schools, vacations. Yes, I guess I was trying to say that in tech focused circle in SoCal, traditional status symbols take a back seat to upgraded houses, vacations, and dining. I don't know friends who buy themselves a rolex or fancy handbag if they get a huge bonus. They might treat themselves or friends to a high end dinner or a nice vacation instead.
  - throwaway2037 2y ago
    I still think this is important anec-data. Thank you to share!