Although traditional luxury (which is based on opulence and exclusivity) as well as contemporary luxury (based on modern values, such as innovation and sustainability) still exist, a third mode appears to have emerged – personal luxury.

This new segment, according to Horizon Media’s New Codes of Luxury: Aspirational Shifts in North America, reflects a broader societal move towards inclusivity, individuality and a deeper connection to personal values.

Horizon Media’s proprietary study was designed to understand how people define the new standards of luxury today. A variety of methods were used to create the report, including a study of 2,000 adults in Canada and the U.S.

Among its many findings, “comfort” was cited as the top luxury attribute by participants on both sides of the border, no matter the product or service category. In addition, the majority of respondents (66%) see luxury as an occasional treat, 34% view it as daily self-indulgence and 44% believe luxury is an intangible, subjective feeling.

Necessities are considered to be luxuries by younger people.

For three in four Gen Zers in the U.S., healthcare, being debt-free and owning a home are luxuries. These feelings are stronger among Millennials in Canada. Pampering “me time” is a priority for mothers, Millennials and Gen Z. One Gen Z participant commented that luxury is having the resources to get by with a comfortable amount of money left over. One Gen Xer said luxury is having what you need, some of the things you want, and still being able to pay the bills.

The majority of Gen Z (65%) and Millennials (64%) believe they will never reach the personal or financial success of their parents. That said, although they may be struggling financially, they’re still willing to spend on things they’re passionate about, with 63% of those 18 to 34 preferring to buy a product or service because it gives them access or a feeling of belonging to a specific community.

Simon Ross, VP strategy and insights for Horizon Media Canada, tells MiC that consumers still want to spend on luxuries. The difference now is that the definition of luxury has moved from the need to own something that may be considered traditional luxury (such as Rolex or Louis Vuitton bag, which many people still want) to personal luxury goals such as having no debt, owning a home, or having money to retire.

So what do these findings mean for media buyers?

Ross explains that younger generations are more likely to have their perception of luxury defined by influencers and celebrities they follow on social media, TV shows and movies.

“Older generations are more likely to be influenced by traditional media, mainly TV advertising and commercials. Therefore, brands that want to push out more luxury product messaging need to be more reliant on social platforms and techniques to reach younger generations,” says Ross. “Older generations are still swayed by the more traditional luxury approach and this needs to be done via TV-based content and advertising.”

Each product and service category comes with its own set of expectations, with people wanting durability from tech, authentic experiences from dining, and craftsmanship and comfort from fashion. According to the report, brands looking to engage people in their individual worlds of personal luxury require intimate knowledge of consumer’s beliefs and aspirations and an understanding of how culture and media are both influencing and reflecting their ever-evolving definition of luxury.

Traditional luxury is creating a tighter circle for a smaller, wealthier audience. Its definition is often rooted in heritage and status but still rings true for some individuals and segments such as Boomers. For this group, luxury could be rare and expensive items, exclusive brands and opulent experiences. For contemporary luxury, innovation and sustainability are cost of entry rather than a point of differentiation. And since consumers vote with their wallet, there’s little room for brands not making continual advancements in these areas, states the report.

“My favourite learning from the study is that luxury is highly personal — and anyone can pursue it. This speaks to the need to fully understand your audience, what motivates them, what interests them, what their passions are and so forth and being able to speak to them in a way that understands their situation and how it differs from others,” says Ross. “The term luxury is more fragmented and complex, which will cause challenges for marketers, but I expect will drive better work in the long term as we’ll need to develop an intimate understanding of our audiences to speak and reach them too.”