"New" Luxury Market Demands

For pre-baby boomers, luxury was about the intrinsic qualities of the things acquired — price, exclusivity, quality of materials and workmanship.

The old European concept of luxury reflects this mode of thinking. Class distinctions were rigid, and the accumulation of wealth through fortune or celebrity did not necessarily provide access to the accoutrements of the upper classes. The appeal of certain luxuries was their exclusivity and rarity. Some say the Oprah brouhaha last June at Hermes, an exclusive Paris boutique, reflects the residual mindset that celebrity alone should not bring special privileges.

The American perception of luxury has become more egalitarian. The shift began in the mid-1980s as the economy was rebounding from a recession, and consumer confidence and spending, particularly among the wealthy, was increasing. Conspicuous consumption was on the rise. To coin a popular movie phrase, "Greed is good."

At the time, a Fortune magazine article predicted that baby boomers, then in their early 20s to late 30s, would eventually become "the most affluent generation ever seen." Twenty years later, boomers have fulfilled their prescient destiny to become one of today's wealthiest demographics. And true to character, boomers have bucked tradition and redefined the meaning of luxury.

Pam Danziger, president of marketing consulting firm Unity Marketing, says the old notions of luxury exemplified by the Donald Trumps and Martha Stewarts of the world are disappearing. "New luxury" is focused on the consumer's experience and perception of luxury in the goods and services they buy, more so than the actual items themselves.

In her book, "Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes," Danziger analyzes the purchasing motivations of the affluent, based on a two-year consumer research study and her observations as a marketing consultant.

Dominique Browning, the editor-in-chief of House and Garden magazine, says in Danziger's book that she has observed a growing perception of luxury in terms of lifestyle intangibles — luxury of time, of space, of quiet and of simplicity — that become scarcer the harder you work to maintain a certain level of wealth.She says the home is where luxury originates and finds its fullest expression.

"I feel the zeitgeist moving to seeing luxury as the ability to design your dream — your dream life and dream home," Browing says. "The home, after all, is the stage for your life. Living well begins at home."

"Living well" home features include bathroom spas with whirlpools, master bedroom retreats with sitting areas, home theaters, and large kitchen/family gathering areas with professional-quality appliances, ample counter space and custom cabinetry.