The Value Code: Rethinking What Makes Something Valuable

Value vs. Wealth: Why Expensive Doesn’t Always Mean Valuable

Walk into any luxury flagship and you’ll see the same formula: a high price tag presented as proof of worth. For much of the last century, this equation held. Wealth was shorthand for value. But that logic no longer convinces. The market and culture at large has moved on.

Price can signal exclusivity, but it doesn’t guarantee meaning. A $5 coffee brewed with ritual and care may create more attachment than a $500 accessory bought off the rack. Value, unlike wealth, is multidimensional: cultural, emotional, functional, and narrative. Brands that mistake expense for value risk finding themselves in the wrong quadrant of culture.

Part 1: Expensive ≠ Valuable

‍Thesis: Wealth is a signal, not the substance. The luxury slowdown and the rise of resale/secondary markets show that expensive price tags no longer guarantee perceived value. Craft, cultural weight, and storytelling are the true determinants of what endures.

Wealth as a Signal, Not the Substance

For decades, luxury equated price with value. A Birkin bag or a Swiss watch wasn’t just an accessory; the price was proof of worth. But recent data shows this logic is cracking. Bain-Altagamma’s 2025 report revealed flat luxury growth after a decade-long boom, with price hikes outpacing consumer willingness to pay. McKinsey’s State of Fashion 2025 likewise shows buyer skepticism: over half of respondents said luxury no longer justifies its cost.

This isn’t about affordability. It’s about trust. Consumers are asking: Does this brand earn its price through heritage, craft, or cultural significance - or is it simply charging more?

Resale and the Rise of Cultural Value

Platforms like StockX and The RealReal are proof points. StockX reported over 60 million lifetime trades by 2024, driven by collaborations and scarcity drops. A Travis Scott sneaker release often commands higher resale than a brand-new Louis Vuitton sneaker at retail. Why? Because scarcity tied to culture trumps wealth alone.‍

The RealReal notes that watches like the Rolex Daytona and Patek Philippe Nautilus consistently resell for above retail demonstrating how heirloom value holds stronger than logo-driven luxury.

Craft and Storytelling as Rising Currencies

Vogue Business has called craftsmanship “luxury’s most valuable currency” (2025). Brands like Bottega Veneta spotlight their ateliers and material intelligence rather than logos. Hermès has leaned into its repair and restoration programs, subtly repositioning itself as steward of permanence rather than purveyor of products.

Evidence:

• Vogue Business Index shows a decline in perceived value-for-money across major brands in H2 2024. Consumers don’t believe higher prices equal higher quality anymore.
• Bain-Altagamma data highlights younger buyers in Asia still paying premiums for craft and personalization, while Western markets cool.

The Value vs. Wealth Quadrant

• The Keepers (High Value / Low Price): Everyday objects that hold deep meaning. Concert ticket stubs, hand-thrown ceramics, thrifted vintage Levi’s.
• Worth Every Penny (High Value / High Price): When luxury earns its cost. Patek Philippe heirlooms, Leica M6 cameras, Hermès Kelly bags.
• I’d Rather Not (Low Value / Low Price): Forgettable, disposable objects. Fast-fashion tees, seasonal logo caps.
• Just… Why? (Low Value / High Price): Expensive items that depreciate quickly. Logo-only status bags, overpriced streetwear collabs without story.

Implications for Brands

1. Re-center on meaning-per-dollar (MPD): Compete not on markup, but on cultural weight per spend.‍
2. Design for permanence: Repair programs, provenance, and storytelling reinforce value beyond cost.‍
3. Integrate resale: Treat secondary markets as brand ecosystems, not threats.
4. Narrate craft: Show your hand - literally. Consumers reward brands that reveal process and provenance.

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The first code is clear: expensive ≠ valuable. What lasts is meaning, not markup.
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Part 2: Risk Horizons: Resource-Pressed vs. Resource-Rich

Thesis: The sharper divide is not generations, but levels of security. Resource-pressed buyers optimize for immediacy and cultural visibility; resource-rich buyers optimize for permanence and legacy.

Beyond Generational Stereotypes

It’s tempting to say Gen Z = YOLO, Boomers = legacy. But evidence complicates that. Deloitte’s 2025 Gen Z & Millennial Survey found over 50% of Gen Z don’t feel financially secure, while The Lancet reported 59% of youth feel “very” or “extremely” worried about climate change. In that context, buying into drops, concerts, and cultural moments is not frivolity - it’s rational adaptation to uncertainty.

By contrast, resource-rich cohorts, often older, but not always, invest in heirlooms and craft because they can afford to think long-term. A Patek Philippe is not just a watch; it’s an intergenerational contract (“You never actually own a Patek Philippe…”).

Two Worlds of Value

Resource-Pressed (short horizon)

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Resource-Rich (long horizon)

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Implications for Brands

1. Time-box value for resource-pressed: Limited drops, participatory events, certified resale.
2. Time-proof value for resource-rich: Provenance dossiers, atelier experiences, restoration guarantees.
3. Bridge segments: Offer entry products with real craft (press appeal for younger buyers) and legacy lines for older/HNW.

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The second code: value strategies follow risk horizons. Short-term culture vs. long-term heritage. Both rational.
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Part 3: Value Is Local Before It’s Global

Thesis: Value definitions are contextual. Europe codes value as craft, North America as cultural heat, East Asia as quality + heritage, and the Middle East as spectacle with younger segments demanding culture too.

Regional Nuances

• Europe: Hermès workshops, Bottega’s woven leather - craft as the foundation of value. Consumers prize savoir-faire.
• North America: Supreme x Louis Vuitton collab, Travis Scott x Nike - value is cultural cachet. Brands win by tapping cultural symbols.
• East Asia: Strong appetite for high-quality, hyper-personalized luxury. Bain notes Gen Z luxury appetite remains strong in China/SE Asia, even as Western markets cool.
• Middle East: Opulence as value (gold, diamonds, mega-retail spaces). But Gen Z in the region shows growing interest in sustainability and craft.

Data Validation

• Bain-Altagamma 2025: luxury flat in China, slowing in US/EU, strong in Middle East/LatAm.
• Vogue Business Index: global decline in “value-for-money” perception.
• McKinsey: consumer skepticism on quality vs. price.

Implications for Brands

1. Sustainability tensions: Drops = churn, heirlooms = slowness. Both must coexist.
2. Equity: Secondary markets democratize access but require authentication and trust.
3. Soft power: Countries export value codes. Japan = streetwear, Italy = leather, France = heritage couture.

Playbook

• Map your portfolio by region + horizon. Spot “Just… Why?” risks early.
• Build a proof stack: craft, provenance, repairability, heritage storytelling.
• Treat resale as retention: archive drops, certified pre-owned, service-backed resale.

The Value Code concludes: Value is cultural, not financial. Brands that design for meaning anchored in craft, story, and cultural nuance, will endure where pure wealth signals fade.