Affordable affluence refers to a cultural phenomenon where consumers use accessible luxury goods and lifestyles to project status and align themselves with a higher social class, without requiring substantial wealth. [1] This concept is embodied by brands such as Aritzia and Erewhon Market, which position themselves as offering high-end, trendy, or health-conscious products that are relatively accessible to the average consumer. [2]
A related concept is quiet luxury, where the ultra-wealthy signal wealth through subtle means. [3] Quiet luxury emphasizes the widening gap between the ultra-wealthy and the general public, whereas accessible affluence provides a way for the general public to indulge in the lifestyle of the ultra-wealthy. [3]
The phrase was first used in this context in a 2023 article in The Cut called "Meet the People Working 3 Jobs to Afford Erewhon." [2] One of the interviewees used Erewhon as an archetype of affordable affluence. [2] It was described as “a way for regular people to position themselves adjacent to the upper class.” [1] [2]
The phenomenon arises due to an individual's desire to showcase status. [4] For years, companies have strategized how to target the average consumers by providing a product that signals an elevated social status. [2] For instance, Aritzia partnered with celebrities and micro-influencers to make it an aspirational brand at an affordable cost. [2] Erewhon similarly has allowed middle class consumers to subtly signal a higher degree of perceived wealth by purchasing higher priced, but still attainable items. [2] It has allowed middle-class individuals to feel as though they are part of an exclusive culture. [2]
This phenomenon has been seen particularly with Gen Z and Millennials in the setting of financial hardships in the 2020s. [2] [5] Affordable affluence is an example of the lipstick effect. [6] Because traditional status symbols such as expensive cars became relatively more unattainable, posting clips on social media that showcase affordable affluence become an alternative status symbol. [5] [7] Particularly with food, the perception has evolved from a necessity to a luxury. [8] A McKinsey & Company report demonstrated that these generations place a higher importance on groceries than restaurants, travel, and beauty/fashion. [9]
A merchant is a person who trades in commodities produced by other people, especially one who trades with foreign countries. Merchants have been known for as long as humans have engaged in trade and commerce. Merchants and merchant networks operated in ancient Babylonia, Assyria, China, Egypt, Greece, India, Persia, Phoenicia and Rome. During the European medieval period, a rapid expansion in trade and commerce led to the rise of a wealthy and powerful merchant class. The European Age of Discovery opened up new trading routes and gave European consumers access to a much broader range of goods. By the 18th century, a new type of manufacturer-merchant had started to emerge and modern business practices were becoming evident.
Consumerism is a social and economic order in which the aspirations of many individuals include the acquisition of goods and services beyond those necessary for survival or traditional displays of status. It emerged in Western Europe before the Industrial Revolution and became widespread around 1900. In economics, consumerism refers to policies that emphasize consumption. It is the consideration that the free choice of consumers should strongly inform the choice by manufacturers of what is produced and how, and therefore influence the economic organization of a society.
In sociology and in economics, the term conspicuous consumption describes and explains the consumer practice of buying and using goods of a higher quality, price, or in greater quantity than practical. In 1899, the sociologist Thorstein Veblen coined the term conspicuous consumption to explain the spending of money on and the acquiring of luxury commodities specifically as a public display of economic power—the income and the accumulated wealth—of the buyer. To the conspicuous consumer, the public display of discretionary income is an economic means of either attaining or of maintaining a given social status.
Pricing is the process whereby a business sets the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of the product.
A luxury car is a car that provides above-average to high-end levels of comfort, features, and equipment. Often, more expensive materials and surface finishes are used, and buyers expect better build quality. The usually higher pricing and more upscale appearance are often associated with the users' higher social status compared to low- and mid-market segment cars.
A millionaire is an individual whose net worth or wealth is equal to or exceeds one million units of currency. Depending on the currency, a certain level of prestige is associated with being a millionaire. Many national currencies have, or have had at various times, a low unit value, in many cases due to past inflation. It is much easier and less significant to be a millionaire in those currencies, thus a millionaire in Hong Kong or Taiwan, for example, may be merely averagely wealthy, or perhaps less wealthy than average. A millionaire in Zimbabwe in 2007 could have been extremely poor. Because of this, the term 'millionaire' generally refers to those whose assets total at least one million units of a high-value currency, such as the United States dollar, euro, or pound sterling.
A Veblen good is a type of luxury good, named after American economist Thorstein Veblen, for which the demand increases as the price increases, in apparent contradiction of the law of demand, resulting in an upward-sloping demand curve. The higher prices of Veblen goods may make them desirable as a status symbol in the practices of conspicuous consumption and conspicuous leisure. A product may be a Veblen good because it is a positional good, something few others can own.
The Theory of the Leisure Class: An Economic Study of Institutions (1899), by Thorstein Veblen, is a treatise of economics and sociology, and a critique of conspicuous consumption as a function of social class and of consumerism, which are social activities derived from the social stratification of people and the division of labor; the social institutions of the feudal period that have continued to the modern era.
A status symbol is a visible, external symbol of one's social position, an indicator of economic or social status. Many luxury goods are often considered status symbols. Status symbol is also a sociological term – as part of social and sociological symbolic interactionism – relating to how individuals and groups interact and interpret various cultural symbols.
Affluenza describes the psychological and social effects of affluence. It is a portmanteau of affluence and influenza, and is used most commonly by critics of consumerism. Some psychologists consider it to be a pseudo-scientific term, however the word continues to be used in scientific literature.
In economics, a luxury good is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a more significant proportion of overall spending. Luxury goods are in contrast to necessity goods, where demand increases proportionally less than income. Luxury goods is often used synonymously with superior goods.
High-net-worth individual (HNWI) is a technical term used in the financial services industry for people who maintain liquid assets at or above a certain threshold. Typically, they are defined as holding financial assets valued over US$1 million. A secondary level, a very-high-net-worth individual (VHNWI), refers to someone with a net worth of at least US$5 million. The terminal level, an ultra-high-net-worthindividual (UHNWI), holds US$30 million in investible assets. Individuals with a net worth of over US$1 billion are considered to occupy a special bracket of the UHNWI. These thresholds are broadly used in studies of wealth inequality, government regulation, investment suitability requirements, marketing, financing standards, and general corporate strategy.
The term designer label refers to clothing, luxury automobile manufacturers and other personal accessory items sold under an often prestigious marque which is commonly named after a designer, founder, or a location-like where the company was founded. The term is most often applied to luxury goods. While members of the upper middle class, or the mass affluent, are perhaps the most commonly targeted customers of these designer labels, some marquees—such as Cartier, Rolex, Montblanc and the haute couture — tend to a wealthier customer base. But almost every designer brand has merchandise that the middle-class wouldn't normally be able to afford, such as exotic skins, furs and hides, limited edition pieces, or things simply priced higher. Designer label companies use their smaller and cheaper merchandise, aimed at the middle class, such as wallets, fashion jewellery, key-rings and small accessories, to make the majority of their income, whilst the more expensive pieces such as haute couture, high jewellery, hand-bags, shoes and even furnishings are usually reserved for the wealthier upper-class clientele.
Affluence refers to an individual's or household's economical and financial advantage in comparison to others. It may be assessed through either income or wealth.
The consumer revolution refers to the period from approximately 1600 to 1750 in England in which there was a marked increase in the consumption and variety of luxury goods and products by individuals from different economic and social backgrounds. The consumer revolution marked a departure from the traditional mode of life that was dominated by frugality and scarcity to one of increasingly mass consumption in society.
Fuerdai is a Chinese term for the children of the nouveau riche in China. This term, generally considered pejorative, is often invoked in the Chinese media and everyday discussions in mainland China as it incorporates some of the social and moral problems associated with modern Chinese society.
Verticalization is a phenomenon, typically seen in major cities, where there is a general increase in the population of high-rise residential buildings. As of 2024, there is no agreed-upon definition of verticalization.
Tuhao is a Chinese term referring to people of wealth. The term has several related and differing definitions throughout time. In its original literary form, it refers to those of prominent and wealthy backgrounds. In modern use, the term has also become a popular slang used to describe the nouveau riche. Pejoratively, the internet slang can be understood to carry on the meaning of "uncouth nouveau riche", "tacky" or "extravagant".
Quiet luxury is a lifestyle characterized by understated elegance and refined consumption, emphasizing exclusivity and discerning taste without overt displays of wealth. Other terms to describe the same concept include stealth wealth, old money aesthetic, or silent luxury. Although these terms have been equated, there may be differences in usage. For example, stealth wealth connotes hiding wealth, whereas quiet luxury connotes subtly signaling wealth.
Dupes are products similar in appearance, functionality, or design to higher-end, often more expensive, branded items but sold at a much lower price. These products offer consumers an affordable alternative to luxury goods without significantly compromising quality or style. Dupes are particularly popular in fashion, beauty, and electronics, where the desire for trendy or high-performance items meets budget constraints. Social media platforms and influencers play a significant role in promoting dupes by sharing their discoveries and recommendations with their audiences.