In the wake of economic uncertainty and growing income inequality, the notion of “luxury shame” has surfaced prominently, especially among countries with wealth disparity like China and India.
This phenomenon has profound implications for the luxury market and reflects a broader societal shift towards a more critical view of ostentatious displays of wealth.
The Ambani Wedding and Public Perception
India presents a contrasting yet related scenario. The lavish wedding of Anant Ambani, the youngest son of Asia’s richest man to Radhika Merchant, highlighted the country’s stark income inequality.
Despite the opulence, criticisms of the wedding’s extravagance were surprisingly muted, even as the event featured performances by international pop stars and saw attendance from global elites like Tony Blair, Boris Johnson, and two Kardashians.
The Ambani wedding reportedly cost $600 million. The wedding bash was spread out for five months, including 2 pre-wedding parties and elaborate wedding festivities. This extravagance exemplifies this shift.
The celebration included performances by Rihanna, Justin Bieber, and the Backstreet Boys among others, and took place across various locations including India, Italy, Cannes, and a cruise ship in the Mediterranean.
This absence of widespread critique, not only from the Indian media but also, particularly from the British press known for its wealth-shaming tradition, is notable. It suggests a cultural shift where society has become more comfortable praising the rich for their wealth, losing the distaste for ostentatious displays of affluence that once prevailed.
In India, this cultural shift might be apparent but is it the case in all the South Asian countries or the West, for that matter?
China’s Luxury Dilemma
To bring luxury shame back to trend, China, the world’s second-largest economy, has seen its rich turn away from flaunting their wealth due to economic headwinds and government policies promoting common prosperity.
The consultancy group Bain & Company has identified “luxury shame” as a significant trend, driven by “sluggish GDP growth” and “weak consumer confidence.” Consumers have been opting for quite luxury.
Derek Deng, a senior partner at Bain & Company, noted, “It’s not to say that they are not willing to spend on luxury- actually, on some of the top players, we continue to see very strong performance in China, but it’s just some of the aspirational consumption that people are getting more cautious around, and will continue to do so.“
The Chinese government’s crackdown on “wealth flaunting” has also played a crucial role. Influencers known for their luxurious lifestyles have seen their social media accounts blocked. For instance, Wang Hongquan, who boasted about his numerous properties and expensive wardrobe, found his Douyin account inaccessible. This regulatory push aims to curb excessive materialism and promote moderate wealth for all.
According to Claudia D’Arpizio, partner and global head of fashion and luxury at Bain & Company, “We call it luxury shame similarly [to] what happened in the U.S. in 2008-2009. Even people that can afford to buy these products have less willingness to do so, [in order] not to be seen as really buying or wearing very expensive products.”
In the United States, luxury shaming became particularly notable during the 2008 global recession. Economic hardship led to widespread resentment towards visible displays of wealth. Brands had to adapt by promoting the quality and heritage of their products rather than overt opulence.
Despite this, the wealthiest individuals continued to drive luxury consumption, reflecting a disconnect between public sentiment and private behaviour.
Read More: There’s A Reason Why The Rich Want To Look Boring Now
The Global Perspective on Luxury Shame
The phenomenon of luxury shame is not confined to Asia. In the West, similar sentiments have been observed.
Brand strategist Martin Lindstrom, who studied the brain’s response to ads and brands by monitoring 2,000 people, explains that this guilt increases when consumers make luxury purchases. This guilt, triggered in the prefrontal cortex, mirrors the reaction of a smoker after finishing a cigarette.
Lindstrom stated, “It’s not very strong at the beginning but increases when you swipe your credit card through the credit-card reader.“
Prominent figures like Elon Musk have not shied away from flaunting their wealth, often engaging in public displays that further normalize high levels of affluence. This contrasts sharply with past cultural norms, particularly in class-conscious Britain, where displays of wealth were traditionally viewed with suspicion and disdain.
The founder of the shopping blog Daily Obsession shared that she still feels guilty for spending over $1,000 on a Tod’s bag months ago. She now keeps the bag hidden in her closet to avoid the shame of being seen as ostentatious.
This fear of being perceived as “That Girl” with expensive items leads many to avoid places where luxury stores are located. In response, fashion companies are employing psychological tactics to counter “luxury shame,” such as linking purchases to charitable causes or presenting products as environmentally friendly.
Additionally, some brands are setting up pop-up shops in unexpected locations to surprise potential customers.
Social Media and the Homogenization of Culture
The role of social media in spreading Western values globally cannot be underestimated. Platforms like Instagram and TikTok have glorified wealth, with influencers like Kylie Jenner normalizing vast fortunes. This homogenization of culture has made ostentatious displays of wealth more acceptable, even in regions where such behaviour was previously frowned upon.
A former beauty influencer with over a million followers on Douyin, Lyla Lai, highlighted the psychological impact of seeing too much wealth online. She explains, “When most people are unhappy with their own lives, they see all this online content that’s so disconnected from reality—seeing all these people who seem so happy and wealthy, it creates a pretty warped psychology.”
India could benefit from a culture of “luxury shaming” akin to China’s, given its severe economic inequality. High-profile displays of wealth, such as the Ambani wedding, starkly contrast with the poverty faced by many Indians, potentially fostering social resentment.
Encouraging more modest and responsible luxury consumption can help bridge this divide and foster a more inclusive society. For instance, according to a study by Oxfam, the top 10% of India’s population holds 77% of the national wealth, highlighting the stark disparity. By promoting understated elegance and aligning luxury brands with social causes, the market could adapt to these societal changes.
The rise of luxury shame reflects a complex interplay of economic conditions, cultural shifts, and social media influence. As wealthy individuals become more cautious about displaying their affluence, luxury brands face new challenges in appealing to these consumers.
This trend also prompts a broader societal reflection on the values we attach to wealth and success in an increasingly interconnected world and the effect we can have on our society.
Image sources: Google Images
Feature Image designed by Saudamini Seth
Sources: Business Insider, Jing Daily, Financial Times
This post is tagged under: Luxury Shame, Wealth Inequality, Quiet Luxury, Luxury Market, Economic Trends, Consumer Behavior, Sustainable Luxury, Social Media Influence, Luxury Fashion, Wealth Culture, Global Economy, Cultural Shift, LuxuryBrands, Economic Uncertainty, Luxury Consumption, Income Inequality, Luxury Lifestyle, Consumer Trends, Social Change, Wealth Ethics
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