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, which position themselves as offering high-end, trendy, or health-conscious products that are relatively accessible to the average consumer.²

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

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.”¹²

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.²⁵ 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.⁵⁷ 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