Democratic Luxury

An interesting shift we are undergoing in society:

With meritocracy, American capitalist/socialist values— this notion of “democratic luxury” is being made.

Let me explain:

Everyone can afford an iPhone

No matter how rich or poor you are (at least in America), you can afford an iPhone. A used iPhone, a new lower end iPhone, or even get the highest end iPhone (monthly payments).

I’m testing the iPhone Pro, and for what you get, it’s quite incredible. $999 gets you:

Great still and video camera
Editing studio
Typewriter
Ebook reader
GPS
Music player
Phone
Uber hailing device
Computer
And more…

Even though $999 is a lot of money, given the value and what you get, it is actually quite a good “bang for the buck”. Cheaper than a laptop, stand-alone digital camera, video camera, etc.

Tesla Model 3

Elon’s dream: creating a mass market ($30,000 electric car), the Model 3.

Even today, you can buy a used Model S in the sub-$40,000 range.

Zara

Zara as successful because you get high end fashion designs (with good quality) at a democratic price.

What is “luxury”?

The etymology of luxury implies a gap. Hierarchy. Wide distance between certain castes of society.

Luxury goods are totems of social hierarchy and power. You don’t buy a Rolex to have more accurate time, you buy (and wear) a Rolex to flex your financial status and power to others.

But what happens when luxury goods become democratized, when everyone can afford these high-end, great quality goods?

I love Whole Foods

I’m a big fan of Whole Foods, especially after Amazon bought them out. Now I can afford to go there all the time, enjoy the rotisserie chickens, and enjoy all the price savings. I can still buy bougie expensive health products, but the staples (eggs, meats, etc) are far cheaper now.

Thus it seems democratic luxury is good:

The basic stuff becomes more affordable for the masses
The high end stuff continues to exist, and continues to become more high end.

Everyone has a 3-series BMW

What happens when everyone buys an entry level BMW? The wealthy buy higher end BMW models, or start buying more high end brands (Maserati, Rolls Royce, Porsche, Lamborghini).