Affordable affluence

Affordable affluence refers to a cultural phenomenon where consumers use accessible luxury goods and lifestyles to project status and align themselves with a higher social class, without requiring substantial wealth.^[1] This concept is embodied by brands such as Aritzia and Erewhon Market, which position themselves as offering high-end, trendy, or health-conscious products that are relatively accessible to the average consumer.^[2]

Brands like Aritzia target middle-class consumers and brand themselves as more exclusive but still remains affordable

A related concept is quiet luxury, where the ultra-wealthy signal wealth through subtle means.^[3] Quiet luxury emphasizes the widening gap between the ultra-wealthy and the general public, whereas accessible affluence provides a way for the general public to indulge in the lifestyle of the ultra-wealthy.^[3]

Origin of the term

An early use of the phrase in this context in a 2023 article in The Cut called "Meet the People Working 3 Jobs to Afford Erewhon."^[2] One of the interviewees used Erewhon as an archetype of affordable affluence.^[2] It was described as “a way for regular people to position themselves adjacent to the upper class.”^[1][2]

Background and description

The phenomenon arises due to an individual's desire to showcase status.^[4] For years, companies have strategized how to target the average consumers by providing a product that signals an elevated social status.^[2] For instance, Aritzia partnered with celebrities and micro-influencers to make it an aspirational brand at an affordable cost.^[2] Erewhon similarly has allowed middle class consumers to subtly signal a higher degree of perceived wealth by purchasing higher priced, but still attainable items.^[2] It has allowed middle-class individuals to feel as though they are part of an exclusive culture.^[2]

This phenomenon has been seen particularly with Gen Z and Millennials in the setting of financial hardships in the 2020s.^[2][5] Affordable affluence is an example of the lipstick effect.^[6] Because traditional status symbols such as expensive cars became relatively more unattainable, posting clips on social media that showcase affordable affluence become an alternative status symbol.^[5][7] Particularly with food, the perception has evolved from a necessity to a luxury.^[8] A McKinsey & Company report demonstrated that these generations place a higher importance on groceries than restaurants, travel, and beauty/fashion.^[9]

See also

• Luxury goods
• Quiet luxury