Vanity capital: the growing market in envy and narcissism
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Version 0 of 1. Name: Vanity capital. Age: Is a state of mind. Appearance: Is everything. I get the feeling that this isn’t something I am going to like … That depends on your point of view. Vanity capital is essentially just a name for all the stuff you can buy to feel good about yourself. Like organic spelt flour? Actually, yes. Or gym membership? Yup, probably. Or sponsored donkeys for Botswana? Maybe not those. The term has been coined by Ajay Kapur, an analyst at Bank of America Merrill Lynch. He defines it as “the pursuit of, and the accumulation of, attributes and accessories to augment self-confidence by enhancing one’s appearance and prestige. It is self-actualisation through self-improvement and self-focus.” Ah well. I suppose people do like to treat themselves now and then. They do, and as Kapur’s report notes, they start with nice clothes, makeup, health food, decent wine, a good phone, sports equipment etc. Then, when they can afford it, they move on to fine art, fancy restaurants, luxury goods, private schools, posh holidays … I thought this was just called “conspicuous consumption”? Or bling? Or showing off? Not any more. And it’s now a huge and growing market, according to Kapur. How huge? $3.7tn (£2.4tn), give or take. A little less than the gross domestic product of Japan, and about the same as Germany’s. Holy sweatbands! And how growing? Very. The report says that the world’s vanity spending is rising faster than non-vanity spending, and predicts that it will reach about $4.5tn (£2.9tn) in 2018. “Envy and narcissism have scaled up, and provide the impetus for powerful growth,” it says. Good old envy and narcissism. You can depend on them. So why is this happening? Basically, a lot of poor people are getting richer, especially in Asia. Social media and e-commerce make it easier both to covet things and buy them. Women are getting more financially independent, too, and they are especially keen on buying nice things, apparently. So female emancipation and the relief of poverty are creating a new global generation of neurotic hyper-consumers? That’s right! Let’s celebrate with some own-brand champagne! Do say: “I’m buff, therefore I am.” Don’t say: “You’re buff, therefore I’m not.” |