Every generation is different from the one before, something that becomes increasingly evident when we look back a century or two when the world was entirely different from what it is today. In the “good old days,” previous generations bought the best-quality items they could afford, with the expectation that they would last a lifetime. My grandfather taught me that he wasn’t “rich enough to buy cheap things.” Meaning, cheaper items break too quickly and need to be replaced, ultimately costing more than buying an expensive item that would last. As family offices look to better serve their clients, lifestyle management trends suggest there is a move away from possessions, towards meaningful experiences.
The rise of consumerism
However, those days seem long gone, and we have entered an entirely different era. The change began when the world transitioned to consumerism, a concept that was identified about 100 years ago and has been accelerating in our society ever since. In a nutshell, consumerism is the idea that more is better. The ever-shortening life cycles of consumer products and technologies like phones, computers, and other fleeting entertainments fuel consumption. Mainstream media has played its part in perfecting the art of pushing consumption, with the general narrative being that if you don’t consume, you’ll become inadequate among your peers quickly. As hard as it might be to admit, oftentimes, we don’t buy things for how they make us feel, but rather for how they make others feel about us.
It would be hypocritical to criticise these developments or to point fingers at those who make fortunes off consumption. This is simply to highlight the conditions under which the world operates, so that we may better understand the trends that emerge and position ourselves accordingly. What is most relevant is seeing how the ultra-high net worth community is changing the way they operate, and these changes are not insignificant. There is a generational shift that the older generation doesn’t understand. Yesterday’s crazy is today’s normal, and who knows what tomorrow will bring.
Possessions giving way to experiences
Humanity’s need for validation is as old as time. So it is no surprise then that the new generation is constantly on the prowl for validation, which is hard to achieve only by flaunting possessions. Possessions have become the baseline, and that is no longer enough to stand out. As everything accelerates, so does the frequency of the need for validation, and it already seems hard to sustain at the current levels. So what is next? The answer is that it’s all about individuality and uniqueness, standing out in a world where everyone tries to one-up the next person.
Beyond buying luxury goods, tailor-made travel is becoming increasingly popular. The mental acquisition of timeless memories has been a growing trend in the world of lifestyle management in recent years, and it has picked up more momentum in the post-COVID-19 era. There are only so many things you can own and flaunt, but there is a seemingly endless number of bucket-list destinations to make meaningful memories. The new generation doesn’t care so much about possessions, but they have an ever-growing appetite for experiences. Individuality is one of the most desirable commodities in the present-day hunt for dopamine. Lifestyle managers and all those who serve the UHNW community have their work cut out for them as they strive to support their clients in fulfilling their wishes.
When we talk about validation, we mainly talk about the importance of public perception. Yes, you want to be seen doing incredible things, but you also have to do them in the right way if you don’t want to fall victim to “cancel culture.” People are becoming more conscious of the impact of their actions on the environment and society as a whole. The younger generation, in particular, is taking an active role in promoting sustainability and social responsibility and seeking out brands that align with this.
How to navigate the growing need for experiences
Perception is key to the success of ultra-high net worth clients and many have been guilty of greenwashing themselves and their organisations, so much so that they can no longer justify material decadence under the scrutiny of the public eye. As a result, UHNW individuals are offloading their yachts and jets, only to charter them back anonymously when needed. Even extravagant cars are being replaced by Teslas to appease onlookers. While there is no denying there is still plenty of indulgence happening behind closed doors, high hedges, and on the high seas, the inability to flaunt it is creating a void that needs to be filled. We’re not here to question the validity of these trends, but rather to highlight them so that we can navigate the market and its potential pitfalls.
The UHNW community has also grown increasingly tired of scarcity where there really needs to be none. Artificial scarcity is a clever marketing trick to create the illusion of value. Watch brands like Rolex, Audemars Piguet and Patek Philippe have banked on this strategy for decades and most luxury conglomerates like LVMH have joined in over the last few years. It’s worth noting that these brands are not necessarily doing more business because of the UHNW community but rather because of an ambitious middle class looking to engage in the world of luxury. Those who are truly part of the elite do not need to flaunt their wealth, and those who are trying to flaunt their wealth are not truly part of the elite.
To sum this all up, it is no longer chic to own lots of things, but rather to seek out more experiences. Be it a sensory deprivation retreat in the Arizona desert or playing golf with ocean-friendly biodegradable balls in the Maldives, there is a move away from the ubiquitous pastimes, such as shopping at high-end boutiques, that lifestyle managers and family offices must be aware of. This shift in values and attitudes towards consumption and validation is a reflection of the changing times. As the world becomes more interconnected, people are realising the importance of sustainability and social responsibility. While material possessions and extravagance still hold a certain allure, they are no longer the ultimate symbols of wealth and success. Rather, experiences, individuality, and environmental and social responsibility are becoming the new status symbols of the modern era.