Jill S., a 50-year-old from southeastern Texas, is having a good year. In September 2008, she was offered a new job at a university in a heavily populated part of central Texas. Not only was the position a jump in title, it included a salary increase of 10 per cent.

The community Jill and her husband moved to for the new job has plenty of shopping malls, restaurants and other entertainment. Jill and her husband even discussed the idea of buying her a new car as a sort of reward for her promotion. But she hasn't; Jill says she almost feels guilty--or embarrassed--about her recent success in the tough economy.

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"I hear that lots of folks are losing their jobs and people are going without. And I'm experiencing the opposite," says Jill. "I'm very careful about what I say around other people now. I don't talk about spending; I don't flaunt things. I don't want to rub people's noses in it."

Jill certainly isn't the only American with a healthy income who has felt the urge to cut back on spending. In September, U.S. consumer spending shrunk by 0.3 per cent from August, despite the fact that personal income was up by 0.2 per cent, according to the Commerce Department.

Even though the Federal Reserve reported on Sept. 18 that U.S. household net worth dropped US$2 trillion over the last year, it's still a whopping US$17 trillion more than it was in 2002, which means that many people--despite a beyond-volatile market--are much richer than they were less than a decade ago. Yet the economic crisis has forced people--even the well-off--to rethink their shopping habits.

Got it, don't flaunt it

She's not the only one. In consumer surveys conducted by Reach Advisors, respondents are more frequently saying that they wouldn't recommend certain high-end goods or services to others since they don't want to flaunt their wealth. As a result, phrases like "stealth wealth," or discreet luxury, have been floating around marketing circles.

That means luxury goods companies must find new ways to lure consumers. For some, brands with less of a "look at me" attitude are the answer.

Take luxury giant PPR. While Gucci, the company's marquee brand, still saw overall sales increase by 6.8 per cent over the first nine months of 2008, compared with the first nine months of 2007, its less ostentatious labels saw a much bigger increase.

Bottega Veneta--whose original tag line in the 1970s was "When Your Initials Are Enough"--saw a 20 per cent increase in sales for the first nine months of 2008. Yves Saint Laurent--with the help of its highly lauded, innovative-yet-understated creative director, Stefano Pilati--saw sales rise by 26.6 per cent, compared with the first nine months of 2007. In the third quarter alone, YSL saw an increase of 27.4 per cent worldwide, compared with the third quarter of 2007.

Think about it this way: If a person buys a monogrammed Gucci handbag, or diamond earrings shaped like Chanel's double Cs, everyone knows where she made the purchase. If, instead, she chooses one of Bottega Veneta's braided satchels, or a handbag from Proenza Schouler's new line--which has no visual branding--she doesn't look like she's showing off.

"Right now, people are more apt to buy things that promise longer durability, instead of relying on faddish things from year to year," says Ron Kurtz, founder of Alpharetta, Ga.-based market-research firm the American Affluence Research Center.

A Personal Touch

Another example of understated luxury is Denyse Schmidt's patchwork quiltdesigns. The quilts are special because they're hand-quilted by Amish craftswomen with pre-washed, fine cotton fabrics. Personal fabrics, such as a favorite, can be incorporated into Schmidt's design upon request. Sure, they cost upward of $6,000, but only you will know uniqueness of the blanket draping your rocking chair.

And while Alexander McQueen's designs for luggage maker Samsonite--which include a white crocodile-print rolling bag--are head-turning, a plain black bag from Tumi might be more functional and less extravagant. Outfitted in nearly indestructible ballistic nylon, the brand's Regent bag features a removable garment sleeve, interior pockets and a strap for additional luggage to be attached. At $1,195 Tumi's case costs about $200 more than McQueen's, but its understated elegance makes the price tag worth it for many.

So there are options out there for people like Jill S. And make no mistake, discreet luxury isn't a passing trend, according to the market researchers we spoke with. Regardless of whether or not overall consumer confidence bounces back in 2009, toning down outlandish spending is here to stay, at least for a while. "This is a real, permanent thing, not a seasonal issue," says Chung. "It's no longer cool to spend like that anymore."