From Opulence to Authenticity: The Transformation of Luxury from the 20th Century to the 21st Century

Chairman LUXONOMY™ Group

The concept of luxury has undergone a monumental change in recent decades. Throughout the 20th century, luxury was defined by exclusivity, prestige, and opulence. However, in the 21st century, perceptions of luxury have evolved significantly, being guided by factors that transcend mere possession of expensive objects. This shift has altered consumer expectations and has forced luxury brands to reconsider and reinvent their strategies.

1. From material luxury to experiential luxury

In the 20th century, luxury was almost exclusively a matter of material possessions. Expensive cars, exquisite jewelry, and high-end fashion garments were the emblems of a luxurious life. However, in the 21st century, there is a shift towards “experiential luxury”. Younger generations, in particular, are seeking authentic and unique experiences that offer a sense of adventure, learning, and satisfaction. Whether it’s a yoga retreat in Bali, a dinner at a Michelin-starred restaurant, or a cultural immersion experience, the new luxury lies in experiences that enrich our lives and provide us with lasting memories.

2. From ostentation to discreet luxury

Ostentation and the display of wealth were dominant features of luxury in the 20th century. However, in the 21st century, there has been a movement towards a more discreet and subtle luxury. Instead of flashy logos, today’s luxury consumers seek superior quality and craftsmanship, and value sustainability and ethics. This trend towards “Quiet Luxury”, which we have already discussed in previous articles, reflects an evolution in consumer values, who are now looking for brands and products that represent their personal values.

3. From mass-produced luxury to customized luxury

The 20th century was marked by mass production, including in the luxury industry. However, with the advent of the 21st century, customization has become a hallmark of modern luxury. From fashion and accessories to travel and gastronomic experiences, luxury consumers are looking for products and services that can be tailored to their individual tastes and preferences. This shift reflects consumers’ desire to express their individuality and authenticity through their consumption choices.

4. From luxury as a status symbol to luxury as a form of self-development

While luxury in the 20th century was often seen as a status symbol, in the 21st century, it is increasingly perceived as an investment in one’s own growth and wellbeing. This can manifest in spending on education and personal development, healthcare and wellness, or experiences that expand horizons and understanding. This change in perception of luxury reflects a broader shift in society towards the value of self-realization and personal fulfillment.

5. From technology-averse luxury to technologically sophisticated luxury

For much of the 20th century, luxury was associated exclusively with the timeless, and often kept separate from cutting-edge technological innovations. However, in the 21st century, technology has become a key element of luxury. Whether through the creation of high-tech products, such as luxury smartwatches, or the use of technology to enhance the customer experience, luxury brands are embracing technology like never before. Technology has not only changed the way luxury goods are produced and consumed, but it has also expanded the definition of what can be considered a luxury product.

6. From unsustainable luxury to sustainable luxury

In the 20th century, sustainability was not a major concern in the luxury industry. Luxury products were valued for their rarity and exclusivity, and less for their impact on the environment. However, in the 21st century, with the growing recognition of the climate crisis, sustainability has become a crucial consideration. Modern consumers are increasingly aware of the environmental impact of their purchases and are looking for luxury brands that reflect their sustainability values. Whether through the use of eco-friendly materials, the promotion of the circular economy, or the adoption of ethical business practices, 21st-century luxury is increasingly defined by its commitment to sustainability.

7. From superiority to purposeful luxury

In the 20th century, luxury was often used to denote superiority, to highlight elevated social or economic status. In the 21st century, however, we are seeing a shift towards “purposeful luxury“. This refers to the idea that luxury products and experiences should have a purpose beyond mere showiness. Whether a social, environmental, or personal purpose, consumers are seeking luxury that provides significant additional value. This shift reflects a broader desire to live more intentional and meaningful lives, contributing something to society.

Paradigm	Change of Century
1. From material luxury to experiential luxury	In the 20th century, luxury was almost exclusively about material possessions. In the 21st century, a shift towards “experiential luxury” is taking place. Younger generations are seeking authentic and unique experiences that provide a sense of adventure, learning, and satisfaction.
2. From ostentation to discreet luxury	Ostentation was a dominant characteristic of luxury in the 20th century. However, in the 21st century, there has been a movement towards more discreet and subtle luxury. Today’s luxury consumers seek superior quality and craftsmanship, valuing sustainability and ethics.
3. From mass-produced luxury to customised luxury	The 20th century was marked by mass production, including in the luxury industry. However, with the advent of the 21st century, customisation has become a distinctive feature of modern luxury.
4. From luxury as a status symbol to luxury as a form of self-development	While 20th-century luxury was often seen as a status symbol, in the 21st century, it is increasingly perceived as an investment in one’s own growth and well-being.
5. From technology-averse luxury to technologically sophisticated luxury	For much of the 20th century, luxury was associated exclusively with timelessness and often kept separate from cutting-edge technological innovations. However, in the 21st century, technology has become a key element of luxury.
6. From unsustainable luxury to sustainable luxury	In the 20th century, sustainability was not a major concern in the luxury industry. However, in the 21st century, with the growing recognition of the climate crisis, sustainability has become a crucial consideration.
7. From superiority to purposeful luxury	In the 20th century, luxury was often used to denote superiority, to highlight elevated social or economic status. In the 21st century, however, we are seeing a shift towards “purposeful luxury”. Consumers are seeking luxury that provides significant additional value.

The evolution of luxury from the 20th century to the 21st century reflects broader changes in our society and culture. From the growing importance of experiences and personalisation to the adoption of technology and sustainability, luxury is being redefined for a new era. As we progress into the 21st century, these trends are likely to continue evolving as luxury brands seek to innovate and adapt to changing consumer demands.