If you or I go to buy at Louis Vuitton or Zara, for us, it would be like one shirt costing a leg. Or take the automotive brand Tesla and its car prices; they touch the limits of the sky. But what is it that makes a luxury brand so expensive? Let’s explore it a bit! Or more like, why do the people pay for it if it is that expensive?
1. The Brand Name
First of all, it is the brand name. If there are two almost similar products, most people will choose to buy them from a famous brand rather than an infamous place. Knowing this, the brands charge higher because they know people will come and buy it regardless of how much they charge the product.
2. Limited availability
Every product line a luxury brand produces is numbered. Be it a designer brand in Pakistan or an international luxury brand; they will make, let’s say, 100 or 1000 products. Now, since it is a piece of art that is available in a limited capacity, they have the space to increase the price of the product.
3. Sense of accomplishment
It’s a circle, really. People buy expensive products to feel accomplished, and when they have accomplished something, they would be able to buy expensive products.
4. More accountability
It is the trust that these brands will be more accountable, and they really are. All the defective branded products you will find in the market costing anything barely are there because if there is even a shred of a problem with a unit, they will discard it. You won’t find it in their stores.
5. Differentiating the circles
Not everyone can afford these products. So meaning that you can afford it puts you in a circle where others, like you, can afford it. And it differentiates you from people who cannot. So because their product can give their consumers a feeling of being in a higher socioeconomic circle, they charge higher.
That said, isn’t the phenomenon ‘expensive’ subjective? If one is at home with a particular product costing however much it is priced at, will we still call it expensive? If one is earning enough to be able to buy it, then well, why not?
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