Goop, “That Girl,” and the Evolution of Wellness as Luxury
How the high-end wellness market is evolving and what luxury brands need to know
When we talk about the high-end wellness market, Goop, the upscale wellness brand fronted by actress-turned-lifestyle guru Gwyneth Paltrow, usually comes to mind as a dominant example of the rise of commodifying wellness with luxury branding during the early to mid-2010s. Fast forward to today, the latest iteration of the wellness culture is the “that girl” aesthetic, a trend originating from, you guessed it, TikTok. Per Refinery29, “That girl’ isn’t just healthy, she’s professionally successful and looks her best at every moment. She wakes up every morning at 5.30 am so she can seize the day and her nails are always uniform, manicured, and eternally chip-free.” She’s the spiritual daughter of the girlboss and Goop, and thanks to the decentralization of influence brought by social media platforms, any wellness-minded influencer could theoretically become the Gwyneth of their social sphere.
“That girl” embodies a new kind of luxury lifestyle, as evidenced by the sheer amount of resources it takes to perform such wellness practices. Not only does she have the time and money required to prepare the perfect iced matcha latte, she can also afford to spend time ensuring that matcha latte is aesthetically pleasing for her social media posts.
Naturally, there has been backlash against the “that girl” aesthetic, given the effort, time and money it takes to participate in the trend, and the fact that much of the related content — as well as the dominant aesthetic of the wellness industry in general — is predominantly thin and white, and has a persistent habit of appropriating Black and brown cultures. Even prior to the pandemic, this version of wellness culture had clearly reached a saturation point, as a new form of conspicuous consumption with the veneer of it being for health reasons.
Given these fraught conditions, engaging in the wellness space today may pose new challenges for luxury brands. That said, the reevaluation of wellness culture, as well as the luxury consumer’s evolving priorities, offer brands an opportunity to meaningfully connect with their audiences and foster a deeper sense of purpose.
Moving From Performative Wellness Towards Holistic Health
Per the World Health Organization, wellness is “a state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.” Despite this seemingly straightforward definition, the concept of “wellness” has evolved into an industrial complex; according to McKinsey, the wellness economy is worth about $1.5 trillion. This is inclusive of both luxury and mass players, and the industry itself is an amalgamation of many industries, spanning beauty and fashion, tech, travel, and fitness, among others.
As The Cut outlined in 2016, wellness is often a luxury in and of itself in modern societies, given the time and money required to acquire and maintain it. It is no accident that manifestations of wealth have historically defined the mainstream wellness aesthetic in the age of social media: no wellness influencer’s social feed was complete without elaborately arranged açaí bowls, breezy scenes from a yoga retreat, glowing selfies showcasing perfect skin, often tagged #sponsored. While a Chanel bag might be a more obvious sign of wealth, a year of semi-regular SoulCycle classes could theoretically cost you just as much, if not more.*
Throughout the pandemic, many people have realized how superfluous much of this commodified wellness culture is. At the same time, the version of wellness outlined by the World Health Organization has become an urgent priority, as people navigate how to truly take care of their health, rather than posturing as doing so online. For affluent consumers, this is reflected by evolving purchasing habits; for example, Klarna reported that, going into the 2020 holiday season, a $275 Versace quilted sleeping mask ranked higher than designer watches on its list of most wished-for accessories. As the New York Times stated, “without parties, there’s no place to show off that expensive watch” — a Versace eye mask is certainly still a luxury, but the product itself is an investment in self-care.
Luxury consumers’ purchasing priorities have shifted throughout the pandemic, and we anticipate that most of those habits will remain, even as people return to in-person socializing. A YouGov Affluent Perspective survey found that the time these consumers previously spent on shopping that fulfilled social belonging, esteem, and self-actualization needs is now spent on activities like connecting with loved ones via their devices (57% doing more), decluttering their homes (45%), crafting or hobbies (35%), spending time outdoors (26%), and exercising (23%). In addition to engaging in wellness activities like exercising and spending time outdoors, Forbes noted that the trend of decluttering is interesting given this audience’s tendency towards overconsumption. It’s likely that, in reevaluating the products they purchase, luxury consumers will increasingly prioritize products and experiences that improve their sense of wellbeing.
Holistic Wellness as a Brand Philosophy
Given that, brands should ensure holistic wellness — which is inclusive of mindfulness as well as medical health, fitness, nutrition, appearance, and sleep — is part of their brand philosophy, and consider how their brand can meaningfully impact their consumer’s wellness. Chopard’s “Stay Happy” campaign endeavored to help consumers “cultivate [their] share of daily happiness” and offered lockdown-friendly activities to encourage creativity and mindfulness. Manolo Blahnik implemented a similar Smile Initiative, in partnership with the Mental Health Foundation, which showcased the famous designer’s garden, family recipes, favorite books and films, etc. to raise mental health awareness.
As social distancing and lockdown restrictions have relaxed, the luxury audience’s interest in wellness travel naturally has seen a resurgence, and as such, a number of specialty retreats have opened, emphasizing safety alongside rest and relaxation. The Ranch Malibu launched its weeklong “The Ranch Private” program, tailored for small groups looking to retreat into nature via private hikes, outdoor fitness classes, and daily massages. More recently, Celebrity Cruises announced that its partnership with Goop would set sail in October, which will include a roster of Goop’s wellness experts including an intuitive energy healer, a dancer and movement creator, among others. These experiences certainly embody luxury, but for the affluent audience, the value is in the immersive wellness experience and sense of community that total immersion offers. That being said, with numerous Covid-19 variants arising, the safety of travel will likely continue to be questioned, even if the travel itself is centered around health and wellness.
As such, luxury brands have an opportunity to further connect with their audience in the digital realm. For many luxury consumers, wellness spaces are deeply intertwined with their sense of community and belonging; the Guardian has suggested that, for some affluent millennials, the gym has replaced the bar or nightclub as a gathering place. While a sense of community may have flourished at the juice bars in Equinox lobbies, pandemic-driven gym closures made that nearly impossible. Digital wellness communities have filled that void; Peloton is an expert at building a digital community. With the platform encouraging you to dole out virtual high-fives to fellow riders, and instructors offering “speed dating” rides, it’s no wonder that its community is so highly engaged.
More Money, More Problems
Mental health is also a big component of the move away from performative wellness and towards holistic wellness, and the pandemic has created conditions that elevated its significance in the wellness economy.
While mental health was increasingly a focus of wellness (and becoming less of a taboo topic) prior to the pandemic, the pandemic has left more people than ever with feelings of depression, anxiety, and other symptoms of mental health distress: A study from Boston University found that, as of September 2020, the number of adults in the U.S. experiencing depression had increased from 8.5% to 27.8%.
What’s more, research published in the Journal of Applied Psychology found that “individuals at the highest levels of income experienced a greater decrease in life satisfaction from before to during COVID-19 than individuals with lower levels of income.” While the researchers did not come to a definitive conclusion as to why this disparity exists, they speculate that high earners “have a higher expectation for a constant availability of resources… and therefore experience greater declines in well-being when a crisis contracts or threatens their resource supplies.”
We know that a key part of pandemic-driven deterioration of mental health is a sense of social isolation, with two thirds of U.S. adults saying they’ve experienced social isolation. Laurie Santos, a professor of psychology at Yale, notes that while many wellness trends have historically emphasized the actions of one person, acts that center community wellness, like participating in small acts of kindness and prioritizing social connection, are actually what ultimately boost happiness.
In the indeterminable future when the pandemic is behind us, it’s likely that the effects of this collective mental health crisis will continue to reverberate. As Beth McGroarty of the Global Wellness Institute indicated to Forbes, “‘Mental and emotional wellness has been the biggest trend in the wellness space before coronavirus and it will become even more important after’ …as she expects more people to suffer post-traumatic-stress levels of anxiety and fear caused by the threat to health and extended social isolation.”
Brands have an opportunity to connect with their consumers by frankly addressing these mental health challenges. For example, Lululemon’s “Peace on Purpose” initiative began as a partnership between the company and the UN Foundation that addresses the mental and physical health of humanitarian and development workers and provides them with tools that support their wellbeing. Originally launched in late 2019, in April 2020 they expanded the program to everyone, to support anyone and everyone struggling with mental wellness during the pandemic. While this partnership is a natural fit for the retailer, given it’s endemic to the wellness economy, other luxury brands would do well to follow suit, to connect with consumers on a deeper emotional level.
Beware of the Cultural Backlash
The old adage is that money can’t buy happiness, but that’s not necessarily true; having money helps you afford adequate housing, healthcare, childcare, and other services that people living in poverty often lack access to but are shown to improve health. Additionally, as we previously outlined, luxury brands must address inclusivity; this is especially important in the wellness space, given historically marginalized communities are more likely to experience trauma and negative health consequences, but are also less likely to receive treatment for those issues.
North Face’s ”Reset Normal” campaign is a great example of the confluence of wellness and inclusivity; the initiative brings together cross-industry experts like Lena Waithe and Jimmy Chin to develop ideas and potential solutions that will support access to exploration, specifically with underrepresented communities of color.
While navigating inclusivity as a luxury brand is certainly tricky, particularly within wellness, younger generations increasingly demand it. As such, investing in it within the critical wellness space is a worthwhile effort for brands to ensure continued cultural relevance, as the younger generations assume their position as the primary consumers of luxury.
* If you love SoulCycle enough to invest in a “SuperSoul” package (50 classes for $3,500) and then opt to go just twice a week for a year, that’s $7,000. The average cost of a Chanel bag (based on the “suggested retail” prices on its website) is $5,800.
Want to Learn More?
The intersection of the luxury and wellness is a space on the cusp of transformative change but rife with opportunity. This is part two in our series leading up to The Lab’s new category disruption report, which will dive deeper into the various aspects of the changing luxury market, including the resurgence of shared joy as well as the various points of tension that will move luxury into the future.
If you wish to access this report, or simply start a conversation around the key trends shaping the future of luxury, please reach out to our Group Director Josh Mallalieu at josh@ipglab.com.
