Consumers often choose specific brands to express their identity and status. While various factors influence the selection of products from specific countries, this study explores a less examined aspect: the socioeconomic status of consumers. Research indicates that consumers with higher socioeconomic status tend to favor international brands as status symbols. Conversely, other studies suggest that local brands appeal more to certain socioeconomic groups due to a stronger affinity with local culture and values. In light of this, the study investigates the psychological mechanisms and boundary conditions that influence local brand preference based on consumer socioeconomic status within the framework of social class structure. Specifically, through three studies, we found that socioeconomic status significantly impacts local brand preference (Study 1: β = −2.36, SE = 0.76, p < 0.01). The underlying mechanism is that consumers with different socioeconomic statuses emphasize distinct identity dimensions when forming their self-concept through brand consumption. Mediation analyses confirmed that both self-identity (indirect effect = −0.08, 95% CI [-0.13, -0.04]) and social identity (indirect effect = 0.04, 95% CI [0.001, 0.074]) serve as significant parallel mediators. Additionally, the role of these psychological mechanisms is supported through moderation analyses, which identified key boundary conditions: Brand Traditional Culture Load (BTCL) moderates the path from social identity to LBP (interaction effect: b = 0.14, SE = 0.06, p < 0.01), and reference group (in-group vs. out-group) moderates the same path (interaction effect: b = 0.21, SE = 0.06, p < 0.001). In the long term, these insights can facilitate the diversified development and sustainable growth of the local economy, fostering a more stable and competitive local brand ecosystem.