Luxury Is Just Perception
Fake Luxury Shoe Store Prank proves Luxury is just Perception
What makes a product luxurious? Is it the quality of materials used or the craftsmanship involved? Or is it simply the brand image and the price tag? A recent PAYLESS Shoe Store prank suggests the answer is the latter.
PAYLESS rebranded their entire store and the name and significantly increased their prices; the results are fascinating.
PAYLESS, a low-priced footwear retailer in the US, rebranded its entire store and name for a weekend to test how much people would pay for their shoes if they didn’t know they were theirs. They built a fake luxury store called PALESSI, filled it with avant-garde sculptures and displays, hired an entire team of sales associates, and filled all the shelves with PAYLESS shoes, jacking up the prices by as much as 1800%.
Potential consumers were scouted from the streets and the Internet for social media influencers and fashionable people who looked likely to attend the event. Attendees purchased overpriced shoes, some for $200, $400, and $600, and were taken to the backroom, where the prank was revealed.
Consumers have been paying hugely inflated prices, some of the pleasures that we get from things that we buy come from the money we spent on them.”
The results were fascinating. People were willing to pay hugely inflated prices for PAYLESS shoes simply because they were marketed as luxury items under the for this occasion invented brand name PALESSI. It shows that people care much more about the brand image and prices than the product and its quality.
This is not to say that all luxury brands are guilty of this. Some have legitimate reasons for their prices due to the high quality of materials used and the craftsmanship involved. A brand’s exclusivity is also marketed as a status symbol representing wealth and success. In many cases, the high prices of luxury items result from the market’s supply and demand.
People care a lot more about the brand image and, in some cases, the prices more so, than they do about the actual product and the quality of it.
Compliments are great, but would these fashionista influencer types open their wallets for our shoes? The PAYLESS team watched from the room backstage as the first customer approached the register. All celebrated the first sale, but then they witnessed more and more shoes selling. Shoes sold for 250, 400, and even $600.
Before they left, we let them know the shoes were from PAYLESS. Anyone who bought the shoes got them from PAYLESS as a gift, but we proved they could sell for over ten times the average PAYLESS price. Now anyone can come into PAYLESS and get these shoes for as low as 19.99.
People care a lot more about the brand image and, in some cases, the prices more so, than they do about the actual product and the quality of it. Even though this is nothing new, it makes you think more about the situation. So if we look at it in reverse and start with a luxury brand, for example, GUCCI, take a few of their products. For instance, you’ll see that the watch logo t-shirt or the Ace trainers are not luxury items. They’re just priced very highly. But because of GUCCI’s brand image, they’ll get categorized as luxury products, and many buyers buy into that.
This won’t be the case for every luxury brand, of course. Some have legitimate reasons for their prices due to the high quality of materials used and the craftsmanship involved. A brand’s exclusivity is also marketed as a status symbol representing wealth and success. In many cases, the high prices of luxury items result from the market’s supply and demand.
The debates surrounding luxury brand product quality and prices will continue forever.
However, the debates surrounding luxury brand product quality and prices will continue forever. Some argue that the high prices of luxury brands are unethical, as they often exploit the labor of workers in developing countries and perpetuate inequality. Critics also say that luxury goods marketing creates an unsustainable culture of overconsumption and waste.
On the other hand, some people argue that luxury brands are justified in charging high prices because they provide jobs and contribute to the economy. Others say that consumers have the right to spend their money on what they choose, including luxury items, and that the high prices reflect the value consumers place on the brand and its products.
In conclusion, the perception of luxury is not solely determined by its price tag, but by the overall value it holds for the consumer expressed through its brand identity, craftsmanship, and quality of materials. Whether or not the high prices of luxury brands are ethical and justified is a matter of perspective and values. It is important to understand that the value of a product is not just based on its price tag, but also on the emotional connection that consumers have with the brand identity and what it represents.
