Traditional Luxury has Been Relegated to the Outskirts

Gen Z and Digital Culture Are Redefining Prestige

By Catherine Ursitti

Graphic by Catarina Koehler

Traditional luxury was once appreciated in terms of exclusivity and heritage, generating billions in revenue from high-margin couture and flagship retail experiences. However, in recent years its presence at the cultural center has been swiftly overturned. Although many luxury brands retain economic significance, their influence among Gen Z has rapidly declined. These cracks in traditional luxury’s appeal aren’t indicative of failure, but rather reflect the evolving taste of younger generations. Luxury is being redefined and pushed to the cultural fringes by technology and social media.

For decades, traditional luxury has been associated with the notion that scarcity generates desire. Brands such as Chanel, Rolex, and Cartier were built upon their unique craftsmanship and inaccessibility. The possession of these brands was considered a mark of prestige amongst an elite few, however the rapid rise of technology and the spread of social media have upended this trajectory. Social media platforms such as Instagram and TikTok have democratized visibility, expanding the appeal of luxury irrespective of economic background. Dupe products have also become ubiquitous, available in abundance at affordable prices, from Canal Street in NYC to online platforms like Amazon.

Simultaneously, there has been a significant shift from possession to expression on social media. Gen Z is less intent on obtaining the popular luxury goods their parents’ generation valued and is instead focused on exploring a more sustainable and creative fashion approach. From their perspective, an outfit curated from a thrift store or a unique vintage piece is more culturally significant than an expensive designer handbag. In this context, the value of a product is measured by its ability to express one’s personal identity rather than its sticker price.

This alteration is evidenced by the hardships of traditional retailers in recent years. Saks Fifth Avenue, long synonymous with high-end department store luxury, has experienced pressure to shift its conventional operating approach in a world now dominated by a digital retail landscape. Although Saks has embraced e-commerce and experiential retail, it struggles to adapt to consumers’ prioritization of social media influence and perceived value. Saks’ challenges reflect a larger cultural issue that is indicative of the redefinition of luxury due to accessibility and relevance.

Another legacy luxury retailer, Neiman Marcus, has similarly experienced financial issues which resulted in a 2020 bankruptcy filing. In contrast, by blending luxury with streetwear and promoting e-commerce experiences, digitally native platforms like Farfetch and SSENSE have emerged successfully. Such developments illustrate how retailers must adapt in today’s fashion culture, proactively working to remain culturally and digitally relevant in an increasingly democratized market.