Are We Finally Moving Away from the Religion of Greed and the Absolute Power of Money?

Do you think that only Russian oligarchs, Croatian wannabe jet-setters, sponsor girls par excellence, and idlers whose fathers left them money to throw around are engaged in luxury and thoughts about it? You are mistaken. Sociologists and serious writers, among whom perhaps the most well-known in recent times are Dana Thomas, author of the book “How Luxury Lost Its Luster” (2008), translated here, and Robert Frank, who authored “Rischistan: A Journey Through the 21st Century Wealth Boom and the Lives of the New Rich” (2008), are also dealing with luxury and the question of what it truly is. Bernard Arnault’s company LVMH, which exclusively deals with luxury, has a special advisor for trends in the luxury world, Concetta Lanciaux, and besides the Luxury Institute, the greatest reputation in this field is enjoyed by London’s The Future Laboratory. Their extensive research on luxury and the five characteristic phases into which the perception of luxury can be divided was recently presented in Croatia, at the Lone hotel in Rovinj, the only Croatian hotel that is a member of The Design Hotels group, by their regional development director, Serdar Kutucu.

Time and Money

When they first addressed this topic at The Future Laboratory five years ago, the research showed somewhat different results from those discussed today. When asked about their view and experience of luxury, most will throw out a cliché about freedom or free time as the ultimate luxury, but the truth is a little different, although, of course, it is related to freedom (of spending) and free time (meaning: idleness, leisure). The fact is that in our country and in most transitional countries, luxury is primarily linked to purchasing power, brands, and labels. Here we are talking about the first phase of luxury, which, according to The Future Laboratory, is actually a completely outdated perception of what luxury truly is. Sociologist Thorstein Veblen analyzed the phenomenon he called “conspicuous consumption” in the 19th century (obvious, ostentatious consumption aimed at showing and proving high status to everyone).

Greed is Still ‘Good’

However, it would be more accurate to say that the phases do not necessarily change chronologically; it is indeed true to assert that, for example, in the 1980s it was “in” to show what you have, to spend, to be seen and noticed spending, but it is equally true to say that these phases actually vary geographically, considering that in Shanghai today it is just as “in” to have and proudly show what you have. If you got it, flaunt it – it is certainly at play, and greed is still “good” there, just as Gordon Gekko claimed in Oliver Stone’s iconic film ‘Wall Street’ from 1987.

1st Phase: Gold and Diamonds

The first phase of luxury can be recognized in gold and the color gold, in a masculine approach to luxury that symbolically evokes the Mooi horse with a lamp on its head, seven-star hotels like the Burj Al Arab, Motorola phones adorned with diamonds, astronomically expensive designer items like Marc Newson’s armchair or Carlo Mollini’s glass table. In the first phase of luxury, design is a kind of new “rock and roll,” and if something is not fabulously expensive, it simply is not good enough. Key words of the first phase of luxury are: superficial, obvious, flashy, decorated, branded. Brands that The Future Laboratory associates with the first phase are Louis Vuitton (their store on London’s New Bond Street is a prime example of luxury phase 1), Gucci, Versace, Bugatti cars, Baccarat crystal, gold bracelets in the shape of belts signed by Bottega Veneta, Veuve Cliquot champagne, Montblanc pens, hotels like the Savoy in London, the new Armani hotel in Dubai, gold iPads and iPhones… In the first phase, there is simply no sophistication, and this phase is today most prevalent in transitional societies and among the newly rich, or among certain strata in India, China, or Russia, while the poorer in those countries aspire precisely to such a model of purchasing/behavior/lifestyle.

2nd Phase: With a Pinch of Tradition

In the second phase, which is still strongly colored by materialism, luxury is associated with tradition, craftsmanship, and bespoke production, knowledge, heritage, quality, and exclusivity. The buyer uses their money to buy things that will show everyone their good taste, knowledge, and wealth, as these are items that not everyone can have or even know how to choose. In phase two, they will choose Soho House hotels, for dinner at Kee Club by Dunhill in Shanghai, Frederique Constant watches, Vertu phones, Cutler and Gross glasses, bespoke suits from Saville Row in London, Courvoisier cognac, Cohiba cigars, Ralph Lauren clothing, Tod’s shoes. The “luxurist” of this phase feels more comfortable in their skin than the buyer who perceives luxury through phase 1, but needs confirmation of their own taste and finds it in tradition and conservative brands that project “old money,” so they buy things that are expensive and have “patina” and still love to show that “they have.”

3rd Phase: Emotions and Experience

The third phase of luxury is primarily recognized through emotions and experience. Luxury is what is unique and unrepeatable, what only a few selected can experience. Of course, it is related to money, but sophisticated in approach. Contemporary, yet respecting traditional values: timeless, sensual, subtle, informed. Self-awareness, the intangible, the more modest, the concept of “insiders” (cognoscenti), learning, drama, and theatricality come into play. The third phase wants to expand horizons, belong to a club of people who know how to have fun in a refined way, like members of the selected group, the A Small World community; who choose brands like Hermes, Burberry, Lalique crystal, shop through Net-a-Porter or in concept stores like Paris’s Colette, wear Stella McCartney and Gareth Pugh. They seek new sensory experiences, have their own “attitude,” are “different,” “get” art and design, visit art fairs like Art Basel in Miami and Frieze in London, use Kanebo cosmetics, want to educate themselves and travel, are picky about service more than about items, and use, for example, a stylish concierge service like Quintessentially, and stay at the Club hotel by Ministry of Design in Singapore.

4th Phase: Responsible, Spiritual, Pure

The fourth phase is marked by social responsibility and awareness. The focus is on sustainable, local, authentic, raw, cautious, spiritual, and pure. The “new luxurist” does not engage in showing goodness through obvious charitable actions that PR screams: we are good and rich, but believes that their duty is to act from the shadows, for the benefit of society. People like Bill Gates and Warren Buffett put part of their wealth at the disposal of the common good, not to a specific “charity,” and turn it into foundations that engage in continuous charitable work or societal good. The term “philanthrocapitalists” is used for them. Values and key terms are: emotional, focused, gentle, isolated, caring, and in this spirit, major global luxury brands like Chanel are trying to change their public image and orient it towards social awareness, sustainable development, and energy conservation. Responsibility is the operative word, and the brands chosen in this phase are stores like the Parisian shop Merci (which donates one euro from every purchase to socially useful purposes), the minimalist Dover Street Market in London, hair salons like Kilico Hair in Tokyo, restaurants like Copenhagen’s Noma, hotel groups like Grupo Habita, cosmetics like Aesop…

5th Phase: Intellectual and Poetic

And finally, the highest phase of luxury is defined by the terms intellectual and poetic. The focus is on nature, contemplation, life-changing experiences, inspiration, the immaterial, connected – all feminine qualities. While the aware wealthy person of phase 4 goes to a spa and wellness to refresh and relax, the one in phase 5 does not do it just for the benefit of the body and beauty, but also for spiritual awakening, solitude for the purpose of knowledge and lifestyle change, goes on a spiritual retreat, into deep contemplation. Or they engage in extreme sports and are often ascetically oriented, vegetarians, devotees, fringe fanatics. Examples of choices are hotels designed radically, almost impoverished, where one meditates and retreats. These are houses and hotels completely infused and merged with nature and self-sustaining, extremely minimalist architecture signed by Swiss architects HHF, biodynamic wines, but also wines from Burgundy winemaker Anne-Claude Laflavie, leather goods brands like Tanner Krolle, and bespoke clothing by Stephan Lachter. Risk and personal experience are in the foreground, so associations with Richard Branson, who leads his life according to this model – and does not shy away from traveling to space, ballooning, or the simplest dinner on the sand – indicate what luxury will look like in the future. It is encouraging that we will, at least according to the research of this esteemed laboratory, move away from the religion of greed and the absolute power of money. From the golden calf to the real calf in the stable? Sounds good.