[Dongeul Dongeul] "Subtle Luxury is Loved"... Gen Z's Fascination with 'Old Money' Fashion

Generation Z Enthralled by Wealthy Aristocrat Fashion
Impact of New Tycoons' Resentment Amid Economic Downturn
Popularity of Small Brand Logos and High-End Brands

Editor's NoteWe bring you entertaining stories about money circulating around the world. From nearby Japan to distant Europe, explore what’s happening in markets across countries and how money flows through them with our friendly economic articles.

Since last year, Y2K fashion has started gaining tremendous popularity among Generation Z (born 1995?2010) in Korea. Y2K refers to the cultural trends that were popular from the late 1990s to the early 2000s. The core of Y2K fashion is using flashy colors and patterned items that the protagonists of early 2000s teen movies might have worn.

While Y2K fashion is popular in Korea, Old Money fashion has begun trending among Western Generation Z. Old Money refers to the established upper class who have inherited wealth passed down through generations. Unlike New Money, who became wealthy through investments and startups, Old Money is perceived to exude an elegant and aristocratic atmosphere.

The American drama "Succession," which satirizes the power struggles of the upper class

Among Generation Z, emulating Old Money fashion has become a trend. Recently, thanks to this trend, even the luxury goods industry, which was trembling with fear due to the economic downturn, is reportedly seeing some spillover benefits. So, what exactly drives Generation Z to be so enthusiastic about the Old Money trend?

◆Resentment toward New Tycoons... Leading to Admiration for Aristocrats

Experts point to feelings of helplessness caused by the economic recession and resentment toward new tycoons as reasons. Generation Z has experienced frustration from wealth polarization since their youth due to the prolonged economic slump and rising prices caused by COVID-19.

Mark Zuckerberg, CEO of Meta

They grew up watching new tycoons who amassed enormous wealth using IT technology. Examples include Mark Zuckerberg, founder of Facebook and CEO of Meta, and Elon Musk, CEO of Tesla. These IT tycoons often enjoy sporty fashion like hoodies and sneakers. To Generation Z, who are dissatisfied with income inequality, the presence of these new tycoons was unwelcome.

Instead, their desire for wealth turned toward the aristocratic upper class that has inherited vast fortunes over several generations. The aristocrats, who have enjoyed immense wealth for generations, play golf and polo and take yacht trips to the Mediterranean Sea every year. They wear Ralph Lauren shirts and cashmere knits instead of sneakers, and jackets without prominently displayed brand logos. Since they do not enjoy overtly flaunting brands, Old Money fashion is sometimes called "quiet luxury." The focus of Old Money fashion is restrained minimalism rather than excessive patterns.

The old money fashion of the late Diana Spencer, Princess of Wales.

As Generation Z began to imitate their fashion, videos tagged with Old Money on the short-form video platform TikTok have recorded over 2.6 billion views. On the UK secondhand marketplace Depop, searches for collar shirts and trench coats have increased by 70% each.

◆"Understated Luxury"... Rapid Growth in High-End Brand Sales

With the spotlight on Old Money fashion, certain luxury brands emphasizing minimalism without prominent logos have started gaining popularity. Representative Old Money fashion brands include Loro Piana, Delvaux, Berluti, and Brunello Cucinelli. Hollywood actress Gwyneth Paltrow showcased the essence of Old Money fashion with a clean and luxurious look featuring a cream cardigan and long coat when she appeared in court following a ski resort accident. The simple wool coat she wore was from the American luxury fashion brand The Row, priced at 3,900 euros, approximately 5.55 million Korean won.

Actress Gwyneth Paltrow is attending a trial after being sued for a collision that occurred at a ski resort 7 years ago.
[Photo by AP Yonhap News]

Thanks to the popularity of Old Money fashion, Loro Piana’s annual sales last year reached 718 million euros (1.02 trillion Korean won), a 40% increase from the previous year’s 510 million euros. The Italian high-end luxury brand Brunello Cucinelli recorded sales of 919.7 million euros in the 2022 fiscal year, up 29.1% from the previous year. Conversely, fashion items with large, conspicuous logos have become subjects of ridicule due to the Old Money fashion trend.

In the American drama "Succession," which satirizes power struggles among the upper class, Greg’s girlfriend appears at Logan’s birthday party carrying a Burberry check-patterned bag, drawing ridicule. Tom, Logan family’s son-in-law, mocks Greg by saying the bag is absurdly large and could even be taken camping.

A scene from the HBO drama 'Succession'
[Image source=The Guardian]

It is very interesting that both the flashy and kitschy patterned Y2K fashion and the minimalism-emphasizing Old Money fashion are popular among Generation Z. As the saying goes, fashion is cyclical, so when the popularity of these two styles fades, what trend will come next?