The brighter the branding, the faster its fading, but our interest payments stay evergreen.

Brands lure us into taking finance and paying interest on depreciating assets

Three friends, Anamika, Brijesh, and Chaitra, met at their favourite café in the city center to catch up on life & times. Anamika, proudly showing off her new iPhone, commented on how the camera made her images stand out. Despite the fact that her older model was still completely functional, she had recently updated taking it on EMI. Brijesh had arrived in his sleek new automobile, the aroma of leather seats drifting across the air. He'd sold in his perfectly good two-year-old car for this new beauty, attracted in by the brand's attraction and the promise of prestige. Naturally on a car loan. Chaitra, ever the fashionista, showed off her limited edition jeans with hole and high-end sneakers. Their cost was too high, and she knew they'd be out of style by next season, but the brand's exclusivity was too appealing. ?

As they chatted, sipping on, it was evident: the power of brands had charmed them all, leading them to invest in depreciating assets with unwavering enthusiasm.

Have you ever noticed how brands have us on a string? Why choose prestige over money?

It's a magic trick; one second you're being logical, the next you're using your credit card to purchase the most recent pricey phone.

Designer clothing with rips? Since it appears that we'll spend more for less fabric or that what is referred to as "daridrata" becomes fashionable, we'll pay more.

Have you ever updated to the newest smartphone despite the fact that the only "major" change is the number of cameras?

Finance the newest technological device? brand u brought on loan will be two models old by the time you finish the interest.

In a time where social standing and one's own self-image sometimes take priority over sound financial assessment, brands have mastered the art of luring customers into spending money on things that lose value and even pay interest for such depreciating items. Brands have mastered the art of selling not just items but emotions and identities through dazzling ads and moving storytelling.

Wonder why we as consumers frequently find ourselves shelling out money for depreciating products and occasionally even on loans.

The luxury automobile market is a prime example. While automobiles are intrinsically depreciating assets, luxury car brands sell not only automobiles but also an image of wealth and achievement. Other car brands trying to bring that in. Brands are more than logos and taglines; they are prestige, quality, and identity markers. Brands portray themselves as aspirational symbols through sophisticated marketing campaigns and narrative. Consumers equate purchasing a brand's products with adopting a specific lifestyle or social standing after it obtains this status.

FOMO (Fear of Missing Out): Oh! That is my favourite aspect about branding.

Consider Apple or Samsung, which introduce new versions of their phones every year. Even if the new features are minor, the appeal of having the latest and greatest model might push people to upgrade, even if their current phone is perfectly functional.

Brands capitalize on consumers' fear of losing out. They generate a sense of urgency by promoting their products as limited-time specials. Even limited editions are the outcome of such strategy.

Not only do high-end fashion labels often partner with celebrities, which then becomes a must-have for many of their admirers, but small value brands also focus on volume these days by recruiting celebrities who just endorse but never use these brands personally.

The product's actual utility will not justify its high price, but the connection to a well-known celebrity can often persuade people to overlook this. The influence of a well-known celebrity endorsing a product cannot be overstated. Brands spend a lot of money to attract celebrities to use and promote their products, which creates an aspirational image and raises the price of the product. Designer handbags and watches, wow! they are beyond understanding of many. While unquestionably well-made, are frequently exorbitantly priced. Even while the value of these things depreciates over time, the branding and perception around them persuade consumers of their worth.

Brands act as the pied piper, luring us into paying monthly for yesterday's must-haves.

Brands can increase the perceived worth of a product by advertising, packaging, and strategic placements, even if the inherent value does not support the price. Financing for high-end televisions or sound systems entices buyers to acquire things they might not have considered if they had to pay upfront. Brands frequently cooperate with financial institutions to offer simple financing solutions in order to make these aspirational products more accessible. While this appears to be handy, it often results in buyers paying more than the product's value due to loan interest.

Next time a brand says "buy now, pay later," remember they mean "pay more, much later."

Welcome to hollow luxury mindset!