Why Luxury Brands Target Those Who Want to Look Rich—Not Those Who Actually Are

Luxury consumption is not about wealth.

It's about signalling wealth.

People purchase luxury not for utility, but to convey a message:

“I’ve made it.”

“I’m successful.”

“I am part of the elite.”

“Respect me.”

“Admire me.”

The luxury brands have engineered their business around this psychological need for recognition, especially among consumers who are climbing the socio-economic ladder.

Behavioral Economics Foundation

The luxury brands exploit many behavioral mechanisms:

1. Veblen Effect

Demand rises as the price does.

People use price as an indicator of value and status.

2. Social Signaling Theory

Purchases often serve as public symbols of identity.

3. Aspirational Gap

Middle-class consumers aspire to "jump" social categories.

4. Loss Aversion / Fear of Looking Ordinary

People are afraid to appear unsuccessful or average.

5. Identity Consumption

People purchase brands to build their ideal self.

6. Conspicuous Consumption

Visible markers of status meet social comparison needs.

These are the psychological levers behind the building of luxury brands—not quality alone.

Neuroscience Behind Why Aspiring Consumers Buy More Luxury

The neurological triggers for consumers who want to "look rich" are very strong:

A. Dopamine Reward Circuit

Buying luxury raises dopamine levels just like:

social validation

achievement

goal completion

This is stronger in aspirational buyers, for whom the purchase symbolizes progress.

B. Ego Network Activation

Luxury items validate:

• self-worth

• EGO

• self-esteem

People building their identity rely more heavily on external symbols—hence more luxury purchases.

C. Social Pain Avoidance

The brain avoids:

• shame

• inferiority

• being "less than others"

• Visible luxury reduces social pain.

D. Mirror Neuron Activation

Consumers imitate others perceived as successful:

• influencers

• celebrities

• wealthy peers

• Luxury triggers subconscious imitation.

Why the Truly Rich Don't Buy the Same Luxury Products

The wealthy prefer:

• quiet luxury

• minimal branding

• subtle craftsmanship

• anonymity

• comfort

• personal networks

• Their social capital is already secure; they don't need logos to prove status.

Many ultra-rich people avoid "loud luxury" because:

They don’t need external validation.

Subtlety itself becomes the new status signal

They value experiences over symbols.

They fear security/safety risks from showing one's wealth.

So, luxury brands target the group where logos matter more → the aspirational class.

Luxury Brands Understand This and Design Their Marketing Accordingly

Luxury brands do not target the "want to look rich" segment.

A. Logo Dominance Strategy

Brands such as Louis Vuitton, Gucci, Fendi, Michael Kors employ:

• visible monograms

• giant logos

• recognizable patterns

Why?

Because the buyer wants to signal status publicly.

Seldom would a high-net-worth individual opt for a logo-heavy design.

But aspirational consumers love them.

B. Heartwarming Storytelling Based on Aspiration

Luxury advertising uses:

elite lifestyles

yachts

Parisian streets

beautiful models

dramatic lighting

The ads don't sell bags; they sell a dream.

The brain imagines itself in that world.

This is identity projection.

C. Social Media Engineered Desire

Influencers who show luxury goods trigger:

envy

aspiration

FOMO

imitation

This primarily impacts non-rich consumers.

The really wealthy don't need Instagram to feel important.

D. Pricing That Creates Psychological Distance

Luxury price tags are designed to feel "just barely reachable" by middle/upper-middle class consumers.

If the price was too high, aspiration would collapse.

For if it were too low, luxury would lose value.

Pricing is scientifically engineered to activate:

ambition

pain

pride

sacrifice

Perceiving the buying decision as a form of self-reward.

E. Scarcity + Exclusivity = Ego Boost

Luxury brands utilize:

limited editions

long waiting lists

"exclusive" drops

This creates:

Urgency

Social bragging rights

the feeling of belonging to an elite group

All of which matter deeply to consumers who want to feel rich.

Case Example: Louis Vuitton vs. Hermès

Louis Vuitton

loud logos

visible patterns

Social signaling

targeted at aspirational buyers

Hermès, especially the Birkin

almost logo-free built for ultra-rich clients The bulk of the earnings at LV come from the aspiring rich. Hermès makes money off the very wealthy.

Different psychology.

Different neuromarketing.

Different ego needs.

Why People Who Want to Look Rich Buy the Most Luxury

1. Bridging their identity gap

They want to appear where they are not yet.

2. To signal upward mobility

Luxury serves as an indicator of success.

3. To avoid social invisibility

For them, luxury is a means of being noticed and respected.

4. To acquire social validation

Compliments, attention, admiration → dopamine hits.

5. Participation in elite culture

Luxury products act as a ticket into exclusive "tribes."

6. To be emotionally elevated

Luxury = a psychological boost, not a financial decision.

Conclusion

The aspect of aspiration in the field of psychology is well understood by luxury brands.

They know:

• wealthy people don’t need to look rich

• the aspiring rich desperately want to appear successful.

• Ego is stronger than logic.

• social validation is worth more than savings.

• scarcity raises desire

• Logos increase status signalling.

• Identity matters more than possession.

• Luxury brands do not sell products.

They sell dreams, ego, aspiration, and social elevation. The biggest believers in that dream are the people who want to “look rich"— and therefore the most profitable customers.