What luxury means in fashion, how it differs from premium and mass market, and why the definition keeps changing.
By Shreya S · Last reviewed 31 October 2026
On this page: The definition · Luxury vs premium · The luxury industry · The Ayerhs view
The definition
What is luxury?
Luxury is something desirable that goes beyond what you need: made with exceptional skill and materials, hard to obtain, priced well above the ordinary, and carrying a meaning, a story or a status that ordinary goods do not. The word comes from the Latin luxus, meaning excess or abundance.
What makes something luxury rather than just expensive?
Price alone is not enough. Most definitions of true luxury combine five things: craft (how it is made), rarity (how hard it is to get), heritage (a history and a name), creativity (a distinct point of view) and emotion (the feeling of owning it). An expensive item with none of these is simply expensive.
Read on Ayerhs: What makes a brand a luxury brand?
What are the main types of luxury goods?
- Soft luxury: fashion, leather goods, shoes and accessories
- Hard luxury: watches and fine jewellery
- Beauty: fragrance, make-up and skincare
- Experiential luxury: hotels, travel, dining, wines and spirits
Luxury vs premium
What is the difference between luxury, premium and mass market?
| Luxury | Premium | Mass market | |
|---|---|---|---|
| Example | Hermès, Chanel, Dior | Coach, Sandro, Theory | Zara, H&M, Uniqlo |
| Promise | A dream and a status | Good quality at a fair price | Trend and value |
| Price logic | Set by desire | Set against competitors | Set by cost |
| Availability | Controlled, sometimes scarce | Wide | Everywhere |
| Discounts | Rare or never | Seasonal | Frequent |
Read on Ayerhs: The four levels of fashion
What is accessible luxury?
Brands, or products, that offer a taste of luxury at a lower price: designer perfume, lipstick, sunglasses and small leather goods, or brands such as Michael Kors and Coach. Accessible luxury is how most people first buy into the luxury world.
The luxury industry
How big is the luxury industry?
Personal luxury goods (fashion, leather goods, jewellery, watches and beauty) are worth several hundred billion euros a year in sales worldwide. The biggest single company, LVMH, had revenue of €80.8 billion in 2025 across all its businesses.
Read on Ayerhs: What is LVMH? · Who owns what
Is the meaning of luxury changing?
Yes. For many buyers, luxury now means meaning, time, craft and experiences as much as owning a logo. Ayerhs has written about the shift towards purpose over price and a desire for depth.
Read on Ayerhs: The Future of Luxury in 2026: Purpose Over Price · 2026 Is the Year of Emotional Luxury · The Soft Luxury Movement
The Ayerhs view
What is real luxury?
Something made with care that you will keep for years. A logo can be bought; real luxury is about the hands, time and imagination behind an object.
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