Recently, there has been a widespread trend among the MZ generation[1] who are adapt at dealing with digital life, are sensitive to the newest trends and pursue their own experiences. That is the small luxury trend which enjoy ‘the small but certain happiness’[2]. Rising prices that seem to have no end, fixed wages, the challenges of difficult work, and emotional strain among people have made "small luxuries" an ideal element that brings a bit of vitality to the demanding daily life. With just the right amount of extravagance, the allure of a "gift for oneself" has captivated many young people. This small but certain extravagance comes prominently in some aspects. Therefore, many marketing goods reflecting this cultural trend are coming out continually. However, is it real that this trend has only good aspects? Let’s learn about the small luxury trend that has become the new cultural trend among the MZ generation with CAH.

Small Luxury Trend

A Small but Satisfying Trend

These days, in Korea, people normally use the two words ‘small’ and ‘luxury’ together. As this word shows, people get big satisfying feelings with even only small extravagance. Purchasing items labeled as 'luxury', ranging from a few million to tens of millions of won, might be burdensome to young people. So, they enjoy a small luxury instead. It includes buying a premium brand's modest-sized perfume or occasionally treating oneself to a lavish hotel buffet while refraining from staying at a 5-star hotel during travels. According to a report published by Hana Financial Institute in February, titled "2023 Financial Consumption Trends," this year's prominent consumer trend is identified as 'small luxury.' According to the report, "Consumer spending on small luxuries across various aspects of life will increase based on individual preferences and values. This phenomenon involves investing in 'premium experiences' beyond high-priced luxury goods." The report further anticipates that expenditures on concepts such as 'omakase' and 'fine dining' will expand, and luxury brands will venture into fields such as pets, children, and lifestyle. Besides, there are also many posts written by anonymous netizens who feel considerable satisfaction after consuming or purchasing small luxury goods. Many people could feel the popularity of that trend because the post got many likes on social media. CAH have quoted a review from a post on 'Blind,' one of the anonymous Korean online communities. The post’s author shared, "For my girlfriend's birthday, I treated us to an omakase meal. We spent around 200,000 won for dinner." He further expressed, "My monthly salary is in the mid-2 million won range, which isn't a lot, but I felt so happy enjoying a delicious meal with someone I love that I didn't mind the cost at all." This conveys a significant sense of satisfaction with the small luxury.

Various Small Luxury Examples

- Niche Perfume

One of the typical ‘small luxury’ goods is cosmetics. It is well known as an effective way to enjoy the products of luxury brands at a relatively low price. Following such cosmetic products, there is currently a trend in premium brand fragrances known as 'niche perfumes.' Niche perfumes refer to premium fragrances crafted to satisfy the preferences of a select few. The market for niche perfumes is rapidly expanding, driven by the growing popularity among the MZ generation, who value expressing their individuality.

- A Luxury Doll Key Ring

According to the fashion platform ‘zigzag’ operated by KakaoStyle in March, sales of accessories like key rings, straps, and phone cases that serve as mood-lifting items have increased among the MZ generation. These small accessories decorate items like phones and bags. With the result of the survey conducted on that platform, the sales of key rings have seen a remarkable increase of 45% compared to January, providing tangible evidence of their popularity. Instead of buying new bags or phones that need significantly much money, they buy new keyrings and straps of characters which help to refresh their feelings of their existing products. Especially, the luxury key rings that the celebs use have tremendous popularity. According to a survey conducted by the keyword analysis tool BLACKWIKI from March 2022 to March 2023, the Naver search volumes for keyring brands such as 'Mon Ami', 'MAJORITYWOOD', and 'Jellycat', which have gained popularity through celebrities’ use, have seen a significant surge. A representative from KakaoStyle stated, "Recently, the sales of keyrings that can change the atmosphere of items like bags, earphones, and phones have increased," and added, "With the retro trend coinciding with high interest rates and high inflation, a form of 'recession-oriented consumption' seems to be emerging through doll-like keyrings, enabling a change in ambiance with a small amount of money."

Why Small Luxury Is Trending

So, what is the main reason for increasing the trend of small luxuries? At first, one aspect of ‘value consumption’ is to pursue one’s own unique experience. According to a KBS news report from February, Lee Jun-young, the director of the Consumer Analysis Research Institute at Sang-myung University, stated, "The MZ generation employs a 'smart spending' strategy, seeking cost-effective options in their daily lives. However, when it comes to products that provide emotional or symbolic satisfaction, they consider the value rather than just the cost." Furthermore, Lee Eun-hee, Consumer Studies professor at Inha University, explained in the same report, "This can be seen as a form of 'value consumption.' For necessities, they search extensively to find the cheapest option. However, if they save too much money, life often can become boring. So, they engage in event-driven consumption like 'an oasis in the desert'.” In addition, Professor Im Myung-ho from Dan-kook University's Department of Psychology mentioned, "Recent events such as the COVID-19 pandemic and inflation have created socially and economically challenging circumstances. The younger generation has faced even tougher times due to employment, housing, and marriage." He continued, "In such a gloomy reality, small luxury can be seen as a 'coping mechanism' for the MZ generation. Finding events or items that bring significant joy can be considered as a response to this situation."

Small luxury as a positive form of consumption to refuel the driving force behind enduring challenging lives can be seen as a popular cultural trend. In an era where constant self-validation is demanded, the culture of small luxury can serve as an avenue to showcase one's uniqueness. While positive consumption within one's manageable limits should be embraced, it's essential to remember that reckless consumption solely for pursuing pleasures beyond one's economic capacity should always be avoided.