In today’s beauty market, luxury is no longer exclusive to the 1%. The allure of high-end products and aspirational lifestyles is rapidly permeating every corner of consumer culture, and this is in part fueled by social media’s omnipresent display of affluence. However, as the cost of living rises and economic instability impacts households worldwide, the gap between aspiration and affordability is wider than ever. This therefore leaves consumers with an even greater need to navigate the contrasting forces of longing for luxury in an era where financial caution is paramount.
Chasing Rich, Mintel’s latest consumer report in collaboration with Base Beauty Creative Agency, sheds light on this phenomenon, categorizing consumers into four distinct personas that reveal not just their purchasing behaviors—important to the beauty industry—but the intricate motivations and financial strategies behind them. From the “Being Rich” cohort, who embody traditional wealth but increasingly share their lifestyles online, to the “Living Rich” consumers, who indulge in luxury despite accruing debt, each group illustrates a unique interplay between economic means and aspirational values. Social media, credit options, and new narratives around wealth have blurred the lines between financial prudence and overindulgence, enabling more consumers to taste luxury, even though they do so at different levels of authenticity and cost.
For brands within the beauty industry, understanding these diverse personas is both essential and insightful. As Principal Beauty Analyst at Mintel, Clare Hennigan emphasizes to BeautyMatter, “The key to navigating today’s fragmented beauty market is appealing to the aspirations of each group, while respecting their financial realities.” In this piece, BeautyMatter dives deep into Mintel’s findings, and unpacks how each persona engages with luxury beauty. From product dupes to high-cost indulgences, the spectrum of consumer behavior reveals an overwhelming opportunity for brands willing to embrace adaptive, value-driven marketing strategies that resonate across demographics.
Being Rich: Redefining Wealth Visibility in the Digital Age
Mintel’s report identifies the “Being Rich” persona as a cohort that represents the traditional wealthy elite—that is, those who possess significant purchasing power. However, Hennigan notes a unique twist. “Modern wealthy consumers are increasingly transparent in sharing their luxury purchases, with social media blurring the once-clear boundaries of exclusivity,” she says. This group includes those who can afford luxury without financial strain, yet they now publicize their consumption, often in subtle, curated ways that exude what’s known as “stealth wealth.”
According to the data extracted from this Mintel report, 65% of US consumers agree luxury products/services impress others. Hennigan explains that this openness is part of a larger trend of “democratizing luxury,” where high-net-worth individuals are breaking away from secrecy, and are sharing aspects of their lifestyle that in previous eras might have been considered too private. This shift allows others to emulate their choices even if they lack the financial means to precisely replicate them.
Playing Rich: Embracing Dupe Culture and Accessible Luxury
For those in the “Playing Rich” category, luxury consumption is more symbolic than substantive. Primarily represented by younger consumers, notably Gen Z and millennials, this group strategically incorporates affordable luxury alternatives, known as “dupes,” to project an affluent lifestyle. The report highlights that 64% of Gen Z and 67% of millennials report purchasing dupes to maintain an upscale aesthetic without incurring high costs, and that 1/3 of beauty shoppers have bought makeup dupes seen on social media. Here, brand association and perceived value are critical. Hennigan explains that “these consumers will spend strategically, opting for items that symbolize luxury but come at a fraction of the cost, often inspired by influencers and social media trends.”
According to Rachel Howard, Digital Marketing Strategist at Base Beauty Creative Agency, “this persona underscores a significant cultural shift towards “aesthetic budgeting,” where consumers prioritize visual symbols of wealth that align with their financial realities,” which affords brands that can authentically bridge the gap between affordability and luxury without compromising quality an opportunity to be well-positioned to attract this audience. For instance, the rise of retail and rental services like Rent the Runway and Vivirelle has made trends like quiet luxury a lot more attainable.
Living Rich: Debt-Driven Consumption Amid Economic Uncertainty
The “Living Rich” persona represents consumers who are willing to incur debt to enjoy a luxurious lifestyle, often influenced by short-term gratification. Millennials, in particular, fit into this category, as Mintel’s data reveals they are often burdened by significant debt yet continue to pursue aspirational purchases. The report highlights that 35% of millennials go into debt for experiences, and 22% for unexpected purchases. It also reported that 33% of consumers regret overspending on beauty, rising to 52% for Gen Z and 40% for millennials.
This group has normalized trends like “girl math,” or rationalizing expenses through minor financial tricks, which allows them to indulge while overlooking the long-term impact. Hennigan attributes this to both cultural pressures and economic conditions. “Many millennials grew up amid economic instability, and the desire for luxury goods can sometimes feel like a well-deserved reward. Debt becomes an enabler for these purchases, often justified as a necessary indulgence,” she says. Social platforms play a considerable role here as well, with influencers promoting financing options like Afterpay, further encouraging this behavior by making high-cost items appear within reach.
This persona highlights a critical opportunity for beauty brands to engage in transparent, responsible marketing. As Hennigan emphasizes to BeautyMatter, brands can support financially prudent decisions by helping to provide this cohort of consumers that are living rich but actually in debt with tools that can help them make better financial choices, positioning themselves as allies to financially constrained consumers, rather than just pushing products.
Planning Rich: Prioritizing Financial Literacy and Long-Term Investment
The final group, “Planning Rich,” consists of financially literate, future-oriented consumers who approach luxury with cautious optimism. Often characterized as zillennials—just on the balance between Gen Z and millennial demographics—this persona values financial education and is deliberate about wealth accumulation. According to Mintel, 42% of consumers within this group prefer waiting for long-term benefits rather than succumbing to instant gratification, and are seeking less expensive alternatives to high-end products.
Hennigan describes this group as pivotal to future luxury consumption trends. “They are not only influencing their peers, but also setting new standards for the industry by rejecting unsustainable spending habits,” she explains. This cohort has found champions in financial influencers like Mrs. Dow Jones, who make financial literacy accessible and appealing through relatable, bite-sized content on platforms like TikTok.
For brands, catering to this persona involves aligning with their values of financial prudence and sustainability. A strategic approach might include marketing campaigns that emphasize long-lasting, multifunctional products as well as transparent messaging about product value and durability. Brands that can resonate with the Planning Rich persona position themselves not only as luxury providers but also as responsible advocates for financial well-being.
Mintel’s report ultimately points to a fragmented yet interconnected beauty consumer landscape. As luxury aspirations remain high, brands must navigate complex consumer behaviors shaped by economic challenges, social media influence, and financial pragmatism. According to Hennigan, “The key lies in balancing the allure of luxury with the practicalities of contemporary consumer finance.” Understanding and appealing to these distinct personas will enable beauty brands to foster genuine connections, drive brand loyalty, and create lasting value in an increasingly complex marketplace.
