Luxury has undergone a dramatic transformation over the past few decades. The digital era has ushered in an unprecedented democratization of luxury—more people than ever can access it, and there are more ways than ever for luxury brands to engage with their consumers (Shults, 2024). Against this backdrop of democratization and an increasingly complex, rapidly evolving, and uncertain world, the meaning of luxury has undergone a fundamental shift. Consumers no longer seek mere ownership of expensive and well-crafted goods; they crave authentic experiences, meaningful connections, and moments of respite from digital overload (Kersen, 2024). By tracing the evolution of luxury throughout history, we can gain a deeper understanding of what luxury means today and why it holds significance. Examples of different ways brands are testing and carving out new approaches to navigate this new paradigm allow for reflection on what this change can mean for brands and the various opportunities and challenges this transformation presents for the luxury industry.

A Brief History of Luxury

Luxury has existed for thousands of years, and humans’ understanding of it and the meanings assigned to it have been contingent on the specific sociocultural context in which it has existed. In the ancient Americas, luxury was closely tied to objects for ritual and regalia, reserved for religious and political elites. But these luxury objects were more than just a status symbol; they often represented a tangible connection to the sacred and the divine. In ancient Colombia and Central America, gold was part of a complex symbolic system. It was regarded as a sacred material, aligned with the sun and divine forces; its reflective qualities and resistance to tarnishing and aging made gold a symbol of immortality and power (Pillsbury, Potts & Richter, 2017). Gold luxury objects were subsequently seen as active agents that created a bridge and dialogue between mortal and divine; gold objects were placed in sunlight to “recharge” their generative powers (Pillsbury, 2020). Luxury did not just mean opulence, but also a tangible bridge and pathway to transcendence —a tool that connected its elite bearers to the supernatural. 

Luxury and luxury fashion have been used to make social differentiation, exclusivity, and power visible—and have served as mechanisms for reproducing and maintaining these differences. Roman emperors would wear imported silks from China, understood as a symbol of their global power as well as their separation from the world of mortal men (Scott, 2023). Later in the 16th century, England, along with other European countries, introduced sumptuary laws. These laws regulated and dictated what individuals from different social classes could wear. Dukes were allowed golden fabrics and sable furs, while marquises and counts were allowed velvets and lynx furs, and so on. Sumptuary laws permitted the nobility to regulate the ambitions of the wealthy bourgeoisie, whose power was rapidly consolidating (Muzzarelli, 2023). Here, luxury rendered their wearers distinct and identifiable.  Signalling their authority and status, and through this signalling, reinforcing the existence of these hierarchies. The meaning of luxury and who was “allowed” to access it was intimately tied to the particular political struggles and tensions of these historical moments.

Sumptuary laws were also a response to moral concerns surrounding luxury, and as dominant frameworks and ideologies began to shift, so did the conceptualizations and positioning of luxury. In the 18th century, philosophers such as David Hume and Adam Smith began to espouse the social and economic benefits of luxury, as they argued that production and consumption had social and economic benefits. This marked a shift in the interpretation of luxury as a source of individual and social corruption, and a framework was created within which luxury was no longer seen as a threat but rather as a positive force (Berry, 2022). Luxury was recast from a corrupting vice to a driver of industry and progress. Once more, the meaning of luxury is contingent on the societal factors it finds itself surrounded by, both shaping and being shaped by them in turn. 

What Does Luxury Mean Today?

Examining this historical trajectory reveals a constant: that luxury is deeply subjective and its meanings change across time and space, in different economic, social, and cultural contexts. This evolution is inevitable, and as outlined earlier in our technological, digital, overwhelming, and increasingly crisis-ridden world, the meaning of luxury has shifted once more. Authentic connection, community, and experiences have become increasingly attached to new understandings of luxury, especially among younger generations. Adaptation to this is critical for brands in the luxury industry. Different luxury brands have responded in various ways to keep pace with this expanded and ever-evolving notion of luxury, creating opportunities for unique experiences and meaningful connections. They have also leveraged social media platforms by authentically participating in and shaping the culture of those platforms, as well as by expanding into new spaces by crossing into virtual realities. 

Luxury as Experience

Despite the slowdown in growth experienced by the luxury industry in 2024, following 5% compounded annual growth from 2019 to 2023, the Prada Group, which consists of the brands Prada and Miu Miu, has reported increasing sales (Amed et al., 2025). The brand’s success comes in part from its strategy: rather than solely selling products, it actively cultivates culture and community. In an interview with McKinsey, Prada Group CEO Andrea Guerra highlights their emphasis on cultural aspects of society, further stating, “We are carving culture, carving society.” (pg. 17). Miu Miu has become a cultural facilitator, creating intellectual and social spaces that happen to be branded. 

Miu Miu hosted a Summer Reads event two weeks ago in major cities such as Beijing, Milan, and Paris. This event, which was open to the public, provided attendees with Miu Miu-branded books by authors Simone de Beauvoir and Fumiko Enchi (Miu Miu, 2025). Miu Miu crafted an experience that fosters strong connections not only between the brand and its customers but also among customers themselves, allowing them to build and find a community through Miu Miu. Miu Miu has hosted other notable cultural events, including a club night in London last month and a Literary Club panel discussion in Milan last April (Miu Miu, 2025).

This strategy addresses what today’s luxury consumers crave and have begun to see as a luxurious and meaningful connection, offering personal enrichment in an increasingly fragmented world. By creating these third spaces that promote community building and cultural enrichment, the Prada Group has tapped into the new version of luxury that is experiential and personally enriching, yielding marked results. As Guerra notes, “People don’t just want a tag, they want to live inside a brand” (Amed et al., 2025).

The New Luxury Lexicon

Loewe’s social media strategy stands as an innovative case study, showcasing the evolution of luxury self-presentation and the tools used to market it. On platforms like Instagram and its website, Loewe maintains a highly curated, elegant, and concise content, aligning with traditional luxury aesthetics. However, their approach on TikTok is a departure from the norm, demonstrating their adaptability and forward-thinking.

Because Gen Z does not fit the typical luxury customer profile, but values experience and authentic connection, they have reached out to them on TikTok, creating content that can be described as ‘absurdist’. This content is characterized by its humorous, surreal, and nonsensical nature. Examples include high heels rattling on top of a washing machine, as well as comical behind-the-scenes videos of models during shoots. (El Hajj, 2024)This new approach captures how the definition of luxury is evolving. For Loewe, luxury is no longer strictly about rarefied goods but about fostering emotional bonds, shared experiences, and a community around the brand.

Loewe’s strategy resonates with Gen Z because it feels authentic. The brand organically participates in and contributes to Gen Z online culture. Instead of creating content that feels like a weak and corny marketing push,  a poor replica made by those who only have a surface-level understanding of the platform and humor, Loewe’s content truly connects with the platform’s users. This authenticity is the key to their resonance with the audience. While the immediate payoff of this marketing strategy is likely to start small with bottles of perfume and candles, the relationship they are cultivating by tapping into new meanings and demographics of luxury will be invaluable.

Entering Virtual Worlds: Luxury Brands in Gaming

Luxury has increasingly ventured into new spaces, including virtual ones. Gaming has become a fast-growing market for brands. According to GEEIQ’s latest report in 2024, there were over 700 brands in virtual sandbox worlds, such as Roblox, Fortnite, Minecraft, and ZEPETO.  Brands such as Gucci, Versace, Hugo Boss, and Coach are among the many that have made these moves (GEEIQ, 2024). 

The opportunities for brands in virtual spaces are still being explored, ranging from the sale of digital items, such as the 200 virtual bags that Versace dropped on ZEPETO (which sold out in six minutes), to awareness-raising campaigns, like Coach’s 2024 ‘Find your Courage’ campaign. Within one month, across Robloc and ZEPETO, 13 million visits and 4 million virtual item try-ons were generated. Additionally, on ZEPETO’s YouTube and TikTok channels, over 730,000 posts were made by users about the campaign (GEEIQ, 2024). 

As Gen Z increasingly spends time in virtual worlds, brands have made the move towards them. Crafting experiences and connections with younger generations and pushing the boundaries of not only what luxury means, but also blurring the spatial constraints of where luxury can exist. 

Lessons and Opportunities for Luxury Brands

The meaning of luxury has always been fluid, shaped by the cultural, social, and economic contexts of each era. From sacred objects and connection to the divine to markers of social hierarchy, and now expanded once more to encompass meaningful experiences and connections, luxury continually transforms to reflect the human needs and values of its time. Today, luxury is more than just the product itself; it is about meaning, community, connection, and experience. 

There is no single formula or “one-size-fits-all” approach to navigating this new incarnation of luxury. Instead, brands must strive to genuinely understand their audiences and consistently reflect their core values and identity, thoughtfully and intentionally blending tradition with innovation. The future of luxury lies in meeting evolving desires—not just for exclusivity or status, but for human connection, shared experience, and purposeful engagement. In an era where meaning and experience define luxury, how will your brand ensure it remains relevant and resonant for the next generation?

Bibliography 

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