Affordable Indulgence is the new Luxury

The Rise of Affordable Indulgence in SEA

Southeast Asia continues to attract investor confidence, fueled by a rising middle class, increasing disposable income, and a young, digitally connected population. However, the region is not immune to macroeconomic uncertainty, from domestic challenges in markets like Vietnam and Indonesia to external pressures such as geopolitical tensions and the return of U.S. protectionist policies.

For Southeast Asia’s younger generations, economic volatility has been a constant backdrop. Millennials and Gen Z came of age during the 2008 Global Financial Crisis, China’s rapid rise and deceleration, the COVID-19 pandemic, and ongoing global instability, have fundamentally reshaped their outlook. Traditional milestones like owning a home or starting a family now feel increasingly out of reach.

As a result, consumer values have diverged sharply across generations. While Gen X may have aspired to material status through homeownership and cars, Millennials lean toward self-expression, experiences, and question the status quo. Gen Z takes this further; prioritizing truth, individuality, and inclusivity. Their consumption is pragmatic: they value access over ownership, balance work with enjoyment, and use spending as a form of identity.

Table 1: Consumer values and behaviors have shifted across generations

Faced with economic constraints but still craving pleasure and escape, today’s consumers are turning to affordable, emotionally satisfying indulgences. Instead of large, long-term purchases, they opt for smaller luxuries that offer instant gratification and create their own life-affirming cultural image. Social media platforms like TikTok have accelerated this trend, normalizing selective splurging on shareable, feel-good moments.

This has reshaped how indulgence is defined. It now lives in daily pleasures, meaningful experiences, and personalized products - all accessible without too much financial strain.

The Three Dimensions of Affordable Indulgence

1. Daily Micro-Indulgences

Small moments of joy have become powerful tools for daily uplift. For Millennials and Gen Z, this is not about status, but about self-care and emotional well-being. Fragrance plays a key role - 75% of female consumers in APAC say it improves their mood and even enhances their skin appearance. This has fueled the rise of the “fragrance wardrobe” - rotating scents to match one’s mood - turning scent-wearing into a personal ritual. In Malaysia, Scent & Co taps into this trend with sample-sized subscriptions to premium fragrances, making indulgence accessible every day.

Consumers are also elevating their home environments. 86% of middle-class Thais are now more willing to spend on home upgrades that reflect their personal style. Brands are responding to this: Complemen+ combines home-safe candles with curated Spotify playlists to create a multi-sensory, hotel-like atmosphere. As homeownership becomes less attainable, people are turning to improving their rentals, bringing an immediate quality-of-life upgrade and a sense of belonging. Castlery meets this demand with stylish, well-priced furniture that helps renters transform modest spaces into feel-good sanctuaries. The home is becoming a space for daily indulgence - both comforting and aspirational.

​​(Photo source: Castlery)

2. Meaningful Experiences

Experiences are now core markers of affordable indulgence. Across Southeast Asia, meaningful experiences are the top travel spending category (see Chart 1). Consumers are seeking trips that offer personal growth, wellness, and hands-on learning, fueling the rise of affordable, purpose-driven travel. Solo getaways, wellness retreats, and immersive “farmer-for-a-day” programs are replacing traditional luxury vacations. The trend also shows up in the “micro-retirements” trend on TikTok, where young professionals take year-long breaks to reset. These choices reflect a prioritization of experiences, rooted in self-improvement rather than material status.

Chart 1: Experiences are the top spending category when SEA consumers are travelling (Bluebell Group, 2024)

This experience-first mindset is extending into retail. Despite continued growth in e-commerce, consumers are returning to physical shopping for immersive, brand-led experiences. Nearly half of Asian consumers now prefer brands that offer full sensory engagement, and 50% of SEA retailers expect a shift back to offline spending, with 42% anticipating foot traffic returning to pre-pandemic levels.

Malls are responding by transforming into lifestyle hubs. In the Philippines, S Maison launched the country’s first immersive art museum featuring 3D and holographic tech. In Indonesia, Lippo Malls are hosting more live music and fashion-forward events to connect with younger audiences. Brands are evolving too: Nike’s sports hub in Singapore fosters community through activity, while Louis Vuitton’s café and restaurant in Bangkok delivers a luxury experience that goes beyond products.

3. Personalized Touches

The viral success of Labubu collectibles by Pop Mart (now with physical stores in all SEA6 countries) is a good example. These affordable, limited-edition figurines bring the thrill of exclusivity without luxury pricing. The “blind box” format gamifies the experience and encourages repeat purchases. More than toys, Labubu charms are personal style statements. Luxury brands are following suit - Louis Vuitton’s customizable bag charms offer consumers a way to make standard items feel personal, while preserving the brand’s exclusivity.

(Photo source: Internet)

Beauty and skincare are also being redefined through personalization. South Korea’s Amorepacific leads the trend with its CUSTOM.ME brand. Using AI-powered facial scans and a lifestyle questionnaire, it analyzes skin conditions - wrinkles, pigmentation, pores, redness - and creates hyper-personalized skincare solutions. As K-beauty continues to influence regional standards, Southeast Asian consumers are beginning to expect the same level of precision, driving demand for tech-enabled, tailored skincare.

(Photo source: Amorepacific)

“Niche brands are focused and deliver on personalised products and experiences and very much focused on bespoke.” - Singapore consumer 

The Takeaway

Rising disposable income, though tempered by economic pressures, has shifted consumer priorities toward indulgences that are affordable, accessible, frequent, and emotionally rewarding. From small daily treats to immersive experiences and personalized products, today’s consumers are seeking self-expression, moments of escape, and joy - over material status.

For brands that recognize and respond to this shift, Southeast Asia presents strong growth potential. Consumers are becoming more discerning, directing their spend toward experiences and products that deliver real value and emotional engagement. The brands that will win are those that offer affordable indulgences that feel personal, meaningful, and worth returning for.