Luxury Isn’t Built. It’s Declared.
Why Luxury is a Mindset, Not a Price Point
And we are back with another instalment of The Business of Luxury. Today, we are breaking down what brands get wrong when they shoot for Luxury Status.
Brutal Truth: They think it’s about price—raising rates, adding fancy gold foil, and hoping people “get it.” Or even worse, they say they’re luxury without the impeccable quality, elevated design, unique experiences, or even desirability. *clutches pearls!*
The brands that dominate, like Hermès, Tom Ford, McQueen, Rolls-Royce, don’t fight for attention. They command it. They don’t explain their worth. They assume it. And that’s exactly why they’re untouchable.
So, if you’re still trying to convince people you’re high-end, you’ve already lost. In this edition, I’ll break down the three psychological triggers that make high-status brands feel effortless… and how you can use them to elevate your own.
Let’s get into it.
Why Luxury is a Mindset, Not a Price Point
When most people think of luxury, they think of price tags. Five-figure handbags, exclusive members-only clubs, and couture gowns that cost more than a regular car. But here’s the truth: luxury isn’t about cost. It’s not even about value.
It’s about perception, positioning, and presence.
The brands that dominate the luxury space, Hermès, Bottega Veneta, Tom Ford, Rolls-Royce, aren’t competing on price. They’re not trying to justify their worth. Instead, they declare it. They exude an untouchable aura that makes them the only option for those who want the best.
Most brands get this wrong. They think luxury is something they have to build, piece by piece, with higher prices, fancier packaging, and expensive marketing. But true luxury? It’s not built. It’s declared.
Now, don’t get me wrong, there are still the finer details of luxury like quality, design, heritage, story etc. but the psychological position of a brand is where the biggest gains are made.
The Problem: Fighting for Attention & Sales Instead of Commanding Presence
Look around at most brands attempting to be “luxury,” and you’ll see the same mistakes:
Endless social media noise - Trying to compete with mass-market brands for attention instead of stepping back and letting people come to them. Pumping out more and more “content”. They’re playing a numbers game instead of an experience game. Remember, you're curating an exclusive club and that takes something very different.
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Now let’s get back to it…
Discounting their way into oblivion - A move that instantly signals desperation and erodes exclusivity. Imagine seeing them in TK Maxx. Brand = destroyed.
A lack of clear positioning - Blurring the lines between premium, aspirational, and true luxury, leaving customers confused about what they actually stand for. Positioning is where your brand sits in the mind of the customer, repeated wrong moves and your position is compromised.
Real luxury brands don’t fight for attention. They command presence.
So how do you achieve that?
Here’s the science…
The 3 Psychological Triggers That Make a Brand Feel Untouchable
1. Scarcity: The Science of Desire & The Fear of Missing Out
Scarcity is one of the most powerful psychological triggers in human behaviour that is hardwired into our brains.
The scarcity heuristic suggests that when something is perceived as rare, our brains automatically assign it higher value. This is because scarcity signals exclusivity, desirability, and social status—all of which are deeply embedded in human motivation.
» Studies show that the anticipation of acquiring something scarce activates the brain’s reward centres.
Team this up with a phenomenon called The Prized Possession Effect (when people exert effort to acquire something, they value it far more than something easily obtained) and you have magnetic desire.
How to use this: Stop making everything instantly accessible. Introduce exclusivity through limited editions/places, invite-only experiences, and controlled distribution. If everyone can get it, no one wants it.
Hermès doesn’t let you walk into a store and buy a Birkin. You have to earn it. That’s not an accident—that’s a deliberate strategy. When something is hard to get, it automatically becomes more desirable.
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2. Effortless Mastery: The Science of Perceived Effort & Status
Luxury brands don’t just look successful, they make success look effortless. This ties into the effort heuristic, a psychological principle that states people equate high value with perceived ease. When something appears natural, refined, and seemingly unattainable, we assign it higher status.
It’s why we love watching virtuoso pianists and sports people when they’re in flow.
How to use this: Your brand’s presence should feel effortless, after all, you’re a master at what you do, right? That means a sharp, refined brand voice, visuals that exude elegance, and messaging that subtly reinforces your status without over-explaining. The more naturally authoritative you appear, the more irresistible your brand becomes. But with a hint of being human and quirkiness.
3. Cultural Authority: The Science of Status & Influence
Luxury brands don’t just exist in a vacuum. They attach themselves to power, influence, and culture. This is rooted in social proof and status signalling, psychological principles that dictate that people look to others, especially those of high status, to determine value.
Think of McQueen dressing royalty, being discovered by Isabella Blow, and attracting fans such as Daphne Guinness, while embodying the raw, rebellious energy of artists and subcultures. The perfect mix of elevated status and culture.
Likewise, Hermès has long aligned itself with the equestrian world, drawing from its heritage in saddlery and associating with prestigious horse-riding events to solidify its status as a brand of refinement and tradition. Polo, anyone?! Giddy-up!
When luxury brands are associated with high-status figures, exclusive events, or cultural tastemakers, they become aspirational.
This also ties into the Halo Effect, where the prestige of one entity (like a celebrity or exclusive institution) transfers onto another (the brand). When a luxury brand aligns itself with cultural authority, it absorbs that authority by association.
How to use this: Position yourself within high-status environments. Partner with exclusive events, align with cultural tastemakers, and ensure your brand is seen in the right places. Your association with prestige should feel organic, not forced. Relationships should be mutual not fan-girl!
The Luxury Brand Playbook: How to Declare Your Status
Stop proving. Start owning. If you’re constantly trying to justify why your brand is luxury, it’s already losing its power. Luxury is assumed, not explained.
Curate an aura of exclusivity. This doesn’t mean being inaccessible—it means creating a world people want to be part of but can’t access too easily.
Let your brand do the talking. Every touchpoint—your website, your content, your offers—should exude luxury without saying it outright.
Luxury isn’t about working harder to convince people. It’s about positioning your brand so effectively that people convince themselves.
In the midst of building a luxury brand and I LOVED this article 🫶🏼 hit on so many points my cofounder and I feel deeply.
Excited for what will come of this ✨