Are Luxury Brands Truly Worth The Hype?

“You get what you pay for” is a phrase that we have all heard at some point in the course of time. Be it a random shopping spree for shoes, apparel, accessories or bags- the entire idea of being able to buy what you want, when you want it is highly appealing to nearly everybody. When it comes to fashion brands, this stands specifically true considering that people are willing to pay more to enjoy better quality and longer lasting products.

In today’s day and age, where the concept of Fast Fashion is extremely well-versed with where brands like Topshop, Zara, H&M and many more have observed a considerable rise in sales and consumption, it becomes important to understand where the future of retail businesses lies?

Do consumers today only care about buying products that are seemingly economic, hands-on and easily available to them? Or is there a certain amount of inclination towards paying a marginally higher amount to reap the benefits of high quality and exclusive products?

Firstly, let us begin by understanding- What is it that drives consumers today?

Over the years, we have seen a constant change in the way that people prefer to make purchases. Now this change in choice has been linked to multiple factors such as geographical location, demographics, culture and traditions, availability, economic status and exposure to global markets, all of which have collectively contributed to give rise to a new and redefined generation of shoppers.

Specifically speaking of Millennials and Gen-Z, it has been noted that there is a significant rise in the consumption of luxury brands by the younger generation who prefers to invest in products that cater to their need for luxurious appeal. Be it luxury fashion brands, cars, hotels or even luxury vacation spots- there is an exceedingly high demand to experience the concept of luxury.

The key reason as to why people buy luxury brands that has resulted in this increase in demand is the advent of digitization. With exposure to so much information about everything through social media and the internet, it has become one of the sole reasons in driving consumers to like and purchase high-end brands.

Luxury Goods and Self-Esteem

In the year 1899, a brilliant economist named Thorstein Veblen founded a very important concept that is relevant even till date. He brought about the idea of ‘conspicuous consumption’ which suggests that how people make certain purchases with the only intent of showing off to others, as opposed to solving any other legitimate purpose.

With the initiation of this concept, it was noted that when people invested their money in buying luxury products, more often than not their only purpose is to show off to their colleagues or maintain a greater social status in society. It is also believed that buying Luxury goods is linked to heightened self-esteem. Well, at least temporarily. People always tend to find a rational reason for wanting to buy luxury goods.

For example, one might want to buy a Range Rover while rationalizing this thought with the excuse that having a care that can handle extreme conditions is important to them and it is something that they absolutely need. Now while this might make them happy in the moment, it is noted that this sense of wanting more is a never-ending loop. This is satiated with buying more luxury products in order to uphold this feeling of elation.

Are Luxury Brands worth the money?

The knowledge of understanding the worth of luxury goods can only be known once we find out if these luxurious high end products are actually made of higher quality or is it simply an illusion?

What has been noted is that, most people tend to make a purchase based on what they know and have heard about the brand. For example, every year people get waitlisted to get their hands on the newest Apple product- be it the most recent iPhone, MacBook or an updated version of the iPad. Despite, Samsung being a brand that makes phones with far superior features as compared to Apple or even a brand like Xiaomi that unique tech products at a considerable economic rate- consumers tend to have a strong loyalty towards Apple products. The reason for this is brand identity. Apple as a brand has gained so much loyalty and appreciation as a company that people do not even consider venturing in to a fellow competitor brand.

This also comes from the fact that people categorize some products as inferior simply by the virtue of them being non-luxury commodities. Apart from this, there comes a certain sense of achievement after purchasing a product that costs a lot. Therefore, it becomes an outlet for people to treat themselves for working so hard and buying something that they otherwise would not have been able to typically afford.

On the other hand, globally acclaimed luxury brands like Louis Vuitton and Gucci have had a mass brand loyalty since decades. It is true that these brands feature products using high quality materials, an attractive and luxurious appeal and beautiful designs- for which loyal customers are willing to dish out a large amount of money. But what needs to be noted is that, more than the brand quality, appeal and appearance when it comes to luxury brands more emphasis is given to the brand name itself.

Once the brand has successfully managed to create a positive and trustworthy image on the consumer, it is more likely for the customer to purchase from the brand again- without too much hassle about the quality or design, since consumers then tend to focus more on the entire brand experience, as opposed to the sole product.

Another important aspect as to why luxury brands simply work is because of its heightened exclusivity. When it comes to fast fashion labels and affordable brands, it is rather common to find similar designs and prints amongst competitor brands. With Luxury brands, there comes a certain sense of authenticity assurance that the brand will only produce original and exquisite designs that are rare and unique to each collection. The concept of limited accessibility and quality is what helps in creating and maintaining that never-ending hype amongst popular luxury brands.

Hence, depending on the factors discussed above, it can be stated that buying luxury goods and products is completely subjective to the consumer’s sense of choice, preference, taste and lifestyle. At any given point it is possible for one to defer their opinion on the same, but what remains unfazed is the perpetual demand and solid understanding of the impact that luxury goods can have on the human life and global revenue collectively.