7 fashion brands middle-class people treat as luxury—but wealthy people avoid

Have you ever noticed that what’s considered “luxury” often depends on who you ask?

For some, a designer handbag or a recognizable logo screams wealth and success. But here’s the surprising truth: many of the brands middle-class shoppers treat as luxury are the exact ones wealthy people avoid.

It’s not because they dislike quality or fashion. It’s because they see the hidden traps behind these purchases—traps that quietly drain your finances, affect how others perceive you, and even shape your own mindset about money.

Let’s dig into seven of these brands and the psychology behind why wealthy people tend to steer clear of them.

1. Michael Kors

I’ll never forget the year Michael Kors handbags seemed to be everywhere. They were in glossy department store ads, flaunted on Instagram, and sitting proudly on the arms of women who’d saved up for that “splurge” purchase.

But here’s the catch—once a brand becomes that widespread, it loses the exclusivity that true luxury buyers want.

For the wealthy, Michael Kors isn’t luxury, it’s accessible. And accessibility, ironically, is the very thing that makes it less appealing to them.

This is a common cycle: a brand markets itself as aspirational, middle-class consumers buy into it, and then affluent buyers quietly move on.

2. Coach

Coach is another great example. It’s a brand that built its reputation on being a step up from the average handbag but never quite reached the prestige of Hermès or Chanel.

A friend of mine once confessed she treated her Coach tote like an investment piece. For her, it was a milestone—proof she was leveling up in life.

But when you look at the financial behavior of millionaires, most don’t spend this way. In fact, 64% of them describe their homes as “modest,” and 55% buy used cars instead of new ones.

It’s a reminder that real wealth often comes from restraint, not from putting money into things that depreciate quickly. For wealthy buyers, Coach represents more lifestyle inflation than actual status.

3. Tory Burch

Tory Burch flats or handbags have become a kind of uniform among certain social groups. I remember noticing this at a corporate event years ago—half the women in the room had the same ballet flats with the gold medallion.

That’s exactly why many wealthy buyers avoid the brand. True luxury, to them, is about rarity and individuality, not blending into a crowd of people signaling status in the same way.

When everyone owns a brand, it shifts from being a symbol of wealth to a marker of conformity. And people with financial freedom often prefer standing out in subtler ways.

4. Ralph Lauren

There’s something undeniably polished about the little embroidered polo player. For many middle-class families, buying Ralph Lauren feels like tapping into country-club elegance.

But wealthy people often see it differently. It’s not that they dislike the clothes—it’s that the brand has become more of a mass-market staple than a signifier of elite status.

Walk into almost any outlet mall and you’ll find racks of Ralph Lauren at steep discounts. That availability chips away at the perception of exclusivity.

In this case, the psychology is clear: when a brand becomes too accessible, its aspirational power fades. The wealthy have no incentive to buy it because it no longer sets them apart.

5. Kate Spade

Kate Spade is charming, playful, and accessible enough to feel like a “first luxury bag” for many young professionals. I still remember buying one for a friend as a graduation gift—it felt special, polished, and slightly out of reach for where we were financially at the time.

But this is where psychology plays tricks on us. Middle-class buyers often equate the stretch purchase with success.

Wealthy people, on the other hand, know that success doesn’t come from displaying logos—it comes from financial freedom.

As noted in a LendingClub survey, over 60% of Americans live paycheck to paycheck. For someone in that situation, spending hundreds on a bag marketed as “luxury” can lock them into financial stress.

Wealthy people tend to avoid Kate Spade not because they dislike it, but because they recognize how deceptive that “affordable luxury” label really is.

6. Tommy Hilfiger

Tommy Hilfiger had its heyday in the 90s as a brand associated with youth culture and status. Today, it’s still treated by many as an elevated, preppy option.

But the wealthy often skip it because the brand has become over-licensed and widely distributed. You’ll find it in outlet stores, department store clearance racks, and global fast-fashion contexts.

The result? It doesn’t carry the weight of true luxury anymore. To someone with money, buying Tommy Hilfiger isn’t about quality or exclusivity—it’s just another logo that once meant something and now doesn’t.

7. UGG

Now, this one might surprise you. UGG boots exploded into popularity for their comfort and instantly became a status symbol in casual wear. College students saved for them, celebrities were photographed in them, and they became almost a seasonal rite of passage.

But wealthy buyers often avoid them for two reasons: overexposure and lack of refinement. They may still wear them privately for comfort, but as a public-facing symbol, UGGs don’t project luxury.

For middle-class consumers, they represented indulgence. For the wealthy, they’re just another cozy slipper—nice for lounging, but not a marker of success.

Final thoughts

Here’s the takeaway: the brands that many treat as status symbols are often the ones wealthy people sidestep. Not because they dislike nice things, but because they understand something deeper—luxury isn’t about logos, it’s about choices.

For the middle class, buying these brands can feel like reaching upward. But in reality, they can reinforce a cycle of overspending, comparison, and even financial stress.

The wealthy often avoid these purchases because they’ve learned that real freedom comes from living below your means, not above them. They don’t need to prove their success with a bag, a shirt, or a pair of boots.

So the next time you’re tempted to splurge on something marketed as “affordable luxury,” ask yourself: Am I buying this because it truly brings me joy and value—or because I want others to see me differently?

That small shift in thinking is where true financial and personal confidence begins.