As the murky economic climate leads consumers to adjust their spending priorities, they're looking for luxury brands that can sell them more than a status symbol. Some 88% of high-income consumers now define status by knowledge rather than material possessions, according to a new report by Team One’s Global Affluent Collective.

Instead of chasing esteemed logos and acquiring more products, these shoppers want to support brands that offer them additional value, like knowledge, connection, or experiences. They have developed what the Collective calls a “worth mindset.”

“For these affluent consumers, they don’t have to play into the hype of anything,” said Tahni Candelaria, director of cultural anthropology at Team One, the creative agency behind the study. “It’s always going to be about what’s longstanding.”

The top three drivers of luxury purchasing decisions for modern high-income consumers are well-being, emotional fulfillment, and personal growth, meaning luxury brands should shift “increasingly toward internal transformation rather than external validation,” according to the report.

“Brands like Gucci have become stale because they’ve said, ‘This is our logo, and let’s put it on everything that there ever was…and we can rely on it because we’re Gucci,” Candelaria said, adding that this is “playing into a stale perception of status.”

Trust falters amid higher price tags

Rising costs are hurting luxury brands’ consumer retention and trust, said our analyst Sky Canaves in a “Behind the Numbers” episode.

“[Consumers] don't see why a handbag should be 70% more than it was five years ago when it's essentially the same product,” she said. “There's no new quality, no new innovation, and that in addition to other economic factors is hitting the luxury sector pretty hard.”

Pricing discussions reflect broader consumer skepticism, as “that mentality of ‘Who is telling the truth?’ is also getting into things like their luxury purchases,” said Candelaria.

When brands like Chanel cite supply chain troubles, consumers are less likely to buy from them, so building deeper relationships beyond product transactions is crucial.

“People are really questioning, ‘Oh, but do we have to believe this anymore?” she said. “Do we have to have faith in these institutions and is the news telling us the real thing? This is seeping into relationships with luxury brands.”

Building lasting resonance

Instead of manufacturing short-term buzz, brands should focus on creating sustainable relationships with affluent consumers, said Candelaria.

Some 95% of affluent consumers consider continuous learning the ultimate luxury, per the report. A brand accommodating this new definition of worth is Grand Seiko, which invites its consumers to events with panels on watchmaking, craftsmanship, and design, said Candelaria.

“Yes, it’s sponsored by the brand, but it's not like ‘Here’s everything you need to know about your Grand Seiko watch,’’’ she said. “Of course you can get into the Grand Seiko lore, but they’re saying ‘We want to edify you as a person who is genuinely interested in craft.'”

Though Hermès has modernized while maintaining its heritage, other brands haven’t mastered that balance, said Candelaria. Resonating with luxury consumers sometimes means being understated and doing less, she said.

“[For many consumers] status is also about what you don’t share,” she said. “It’s also about not being too much and about what you keep private.”

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