The Glitter Isn’t Always Gold: 10 Ways Luxury Marketing Misleads the Average Consumers

We all remember the rush of our first luxury purchase—spending months saving, pinning “celeb inspo” to our Pinterest boards, and finally feeling like we were stepping into a new phase of life.

Luxury has long been positioned as a marker of achievement.

But what if it’s all just a façade?

What if much of what we’ve been taught to believe about luxury is simply a well-crafted strategy to make us spend more?

As consumer priorities shift with the times, it’s becoming increasingly clear that luxury marketing is missing the mark.

Here are 10 ways the industry continues to fail its most loyal and overlooked audiences:

LACK OF DIVERSITY AND REPRESENTATION 

At the height of COVID, many luxury brands made public commitments to change. They pledged to rethink how they engage with consumers and to foster environments rooted in inclusivity. For a short time, it felt like the industry was finally ready to reckon with its long-standing history of exclusion.

Today, we can see that those efforts are slipping away. From the lack of size inclusivity on the runways to the narrow scope of who is featured, luxury marketing continues to close the door to more opportunities to expand into different markets.

For example, Black and Brown women are among the top spenders in the luxury fashion and beauty space—yet they remain largely invisible in major ad campaigns and influencer partnerships. In 2021 alone, Black Americans held a buying power of $1.6 trillion. This figure shows the blatant opportunity brands are missing from engaging with these communities.

THE SCARCITY TACTIC

Luxury brands are notorious for playing on the emotions of their consumers. The plan is to make you feel like you can never miss out on an event or item.

Why? Well, the more unattainable something seems, the more valuable it appears—at least on the surface. But that’s the thing: exclusivity isn’t about quality or craftsmanship. More often, it’s a tactic meant to spark urgency and force you to spend.

That’s the narrative we’ve been sold. And it works. Brands also use exclusivity to position themselves at a higher level in the industry amongst their competitors.

For example, Supreme—which started as an underground skate shop in New York— has used multiple limited-edition collaborations as a way to cement itself as one of the most influential brands in luxury streetwear.

The use of exclusivity extends beyond product availability. High-end brands often host exclusive events where the sole purpose is to boost sales. These gatherings, while offering unique experiences, create an implicit expectation to purchase, leveraging social dynamics to drive consumer behavior. 

SUSTAINABILITY 

In the past few years, consumers have gotten louder about demanding transparency around sustainability. In response to this, brands have loaded up their marketing kits and PR rollouts with buzzworthy words like sourced, neutral, or carbon footprint.

This is a strategy that is designed to keep consumers buying items under the guise of “doing better”. The reality is that most brands—luxury included—are still using the same synthetic materials and causing the same problems they did over 10 years ago.

CULTURAL INSENSITIVITY  

The fashion industry has a long history of taking from cultures without proper recognition. At this point, it almost feels intentional—like a plan to stir up controversy and drive publicity around a new item or campaign.

When there is pushback against these scandals, there is rarely any accountability shown by the brand.

The luxury market isn't new to this behavior— just look at the scandal that surrounded the ‘22 Dior collection. Dior was accused of culturally appropriating a traditional Chinese garment known as ‘Mamianqun’. Dior carelessly described it as a ‘hallmark Dior silhouette’. 

HIGH PRICES, LOW QUALITY

When you hear of luxury brands you probably think of expensive materials and meticulous craftsmanship.

Lately, that hasn't been the case. It seems as though customers are paying for the idea of luxury versus quality.

Chanel has come under scrutiny for the decline in their leather goods and jewelry even though their prices are on a continuous climb.

Dior faced a similar backlash when it was discovered that some of their bags cost $57 to make but are being sold at over $3000.

THE ‘MADE IN ITALY’ ILLUSION 

Luxury brands pride themselves on a ‘made in Italy’ or ‘made in France’ tag but the truth behind that label may need an asterisk.

In the book “Deluxe: How Luxury Lost its Luster” by Dana Thomas she expresses that products are being mass-produced in China, then shipped to Italy for the final touches to qualify for the ‘made in Italy' label.

Recently on TikTok, Chinese factories have gone viral for revealing where some of the most popular brands are made. Archivist and fashion historian Shelby Ivey Christie explains in her video that luxury bags are made in China with African leather.

OUTDATED BEAUTY STANDARDS

Luxury marketing often promotes unattainable beauty standards that don’t represent most of their consumers. Despite public urges for inclusivity, most campaigns still uphold Eurocentric-centered features, slim figures, and young people.

This portrayal isolates a portion of consumers and contributes to a negative self-image. The savvy marketing techniques convince customers to aspire to these ideals which leads them to invest in these products which can lead to a burnout.

TRENDY OVER TIMELESSNESS  

Spending thousands used to feel like an investment, but now most brands are more focused on trend cycles than longevity. Some luxury brands are constantly pushing trends, it-bags and virality.

This dilutes the meaning of luxury and causes overconsumption and buyer fatigue. Brands are in a constant chase of relevancy and they are forgetting what their core value should be.

STRONGLY ALIGNING WITH CELEBRITIES 

Luxury brands have overwhelmed Fashion Week with an army of celebrity endorsements. Marketing teams are relying heavily on star power, creating the illusion that consumers can buy their way into a glamorous lifestyle.

In the past, the front rows of New York, Paris, and Milan were filled with buyers, editors, and photographers. Now, there’s been a complete shift towards celebrities and influencers--something that many feel is more of a gimmick than genuine fashion storytelling.

GATEKEEPING

Luxury marketing has tricked consumers into thinking they have to play a game with their own money, convincing them that the reward of owning the item will make it all worth it.

Hermés is a prime example of this strategy. No one can walk into a Hermés store and purchase a Birkin. Instead, you have to ‘play the game’--make multiple purchases over time, hoping to be offered the opportunity to buy the bag. In the end, the brand wins. You may have only wanted a Birkin, but now you're spending more just to prove your loyalty.  

LUXURY MARKETING ISN’T GOING AWAY…

For some, the gimmicks don’t matter—they can afford the game. For others, it’s about trying to buy into a reality that doesn’t reflect their own.

Then some use luxury as a personal milestone, a marker of success. None of that is inherently wrong. But what is important is knowing the game you’re playing.

These brands aren’t going to stop selling us fantasies, but we can be more intentional about how we engage with their luxury marketing tactics.. Do your research. Question the story. Don’t let marketing be the only thing driving your purchases. 

✍️ Written by Christina Brown