This study aims to investigate how consumers understood luxury during an economic downturn and the values they gained from consuming luxury in a downturn and to refine the existing dimensions of the luxury value framework.
This study was qualitative and interpretive in nature. The authors interviewed 16 female luxury consumers during the 2022–2024 economic downturn in the UK and thematically analysed the data.
The term “lipstick effect” refers to increased consumption of certain affordable luxuries, such as premium lipsticks, in downturns. The authors found this imprecise, as the respondents consumed affordable luxuries that were not cosmetics. Apart from escapism offered by luxury consumption, participants were ensuring luxury’s durability and continued functional value, which they tied to their self-concept as responsible consumers. Luxury was also consumed to improve well-being, but this generated negative emotions of guilt and shame; some consumers were concealing luxury.
The authors contributed to a better understanding of the construct of luxury values. The authors added durability and well-being as new luxury values, mapped to functional and symbolic value dimensions, respectively. The authors also added the principle of making links between different luxury values and added the links between durability (functional) and self-actualization (symbolic) and between social meaning (symbolic) and emotional value (experiential). Further, the authors advise marketers to prioritize “meaning” and “doing” over “owning” luxury and to enhance the visibility of durability signals of luxury over its conspicuousness.
