The curious case of shopping bags!

Have you ever noticed those rich people, who never carry their own stuff yet never seem to have any problems carrying shopping bags? Have you ever wondered why?

Before I begin to dissect this behavior I am reminded of an incident that happened with me sometime back.

A few months back on a mundane day I was at a government office waiting in line for some documents. I was scanning the room with pure boredom over and over when my eyes landed on a young girl. She looked like just any other person in the room yet she had my full attention at this moment. Or, I'd rather say - the bag she was carefully holding had my full attention at this moment. It was a Fendi Origami Large sheepskin bag - A high end designer bag that costs enough to run several Indian households for a year. It looked very out of place in its current situation - people around it didn't know a Bag Royalty was in the house. For the next 45 minutes my eyes would wander around the room but go back to that bag again. Now, the girl didn't look a part of this crowd to me. The way she spoke seemed elegant, her demeanor poised and her air sophisticated. Needless to say the first thing I did after I got home was to search the current price of that bag.

So what really happened there?

A handbag with a coveted logo was not only able to pull my attention but was also was able to build a positive perception of the owner. Just by seeing the branded bag, my brain implicitly associated the owner with Wealth and Success. More importantly the bag was able to pull me into the clutches of a deadly marketing funnel - The AIDA model [Attention, Interest, Desire and Action]. This simple funnel is as deadly as it can get, parting countless gullible like me from their money every single second of every single day around the globe. The bag had my attention when I saw it, It had my interest when I searched for its prices and colors. It had my desire because I wanted to buy it. The only step that remained was Action - Which I didn't perform - or couldn't perform, owing to my pitiful bank balance. So how did I go from just a glance to wanting to buy the product?

What sorcery is this??

The luxury brand industry has been employing some crafty and genius marketing strategies for a long time to well - tap into human desire. These premium priced designer items have tapped into a deep psychological need to set oneself apart from the crowd and be seen as Successful. In product terms, I could say that being able to afford these items has become like achieving a key success metrics in one's life. Showing them off is a way to convince others that you have purchasing power and influence without ever saying a word. These marketing strategies have completely changed human attitude towards these luxury items in the last several decades.

So what gives?

Lets dive into some of these clever strategies that have changed consumer behavior:

• Superior quality

These companies employ excellent craftsmanship, use exceptional materials, and innovative design to create products that are considered to be of the highest quality.

• Premium price, focus on affluent customers and Aspirational value

Increasing demand yet limiting supply has allowed these brands to put a premium price to their products - keeping the price point out of reach for lesser mortals. This has generated an aspirational value for these brands, and being able to afford these items is considered an achievement.

• .Creating underlying value

Gone are the days when gold, real estate and stocks were considered investments. These brands have convinced the affluent class that purchasing their luxury products not only amplifies their worth and flaunts their purchasing power but also that these products are so valuable that they are considered investments and heirlooms by many.

The value appreciation of Chanel bags maintained in excellent condition increases its value by 10-15 % every single year. This value appreciation is better than many listed stocks on the stock markets. Another excellent example can be Luxury watch brand Patek Philippe - You would get a sense of the brand by its tagline - "You never actually own a Patek Philippe. You mearly look after it for the next generation"

• Exclusivity - Creating an exclusive luxury experience for its customers.

Let's assume you decided to buy a Hermes bag for yourself. Congratulations! Now can you just walk into a store and buy it? In your dreams. You first need to take an appointment for the store you want to visit - You have to enter your passport information - because people fly from around the world to buy a Hermes in Paris or London. When you visit the store don't think you can buy the bag or the color of your choice. You are offered an Hermes, you don't usually get to choose one. This depends on many factors. Previous purchase history helps but not always. You have to convince them you deserve the bag, and look the part while doing so. And even after all this, you can get politely rejected if the sales associate doesn't get the vibe.

• Snob value

Famously, no one really knows what changes in an Iphone year on year. Yet, people stand in lines for hours for every new release, just to get their hands on their devices. Why? Because Apple devices have a snob value. What is that? It is value attached to something for its power to indicate supposed social superiority. Luxury goods have a snob value which is what makes them so attractive to people.

• Scarcity tactics

Controlling demand and supply. Perfect example of this is a diamond. Diamonds are naturally abundant, although if you visit Tanishq or Tiffany's you will be charged as if they have discovered alternate fuel. It all started when De Beers controlled distribution and created a false sense of scarcity, pushing up the prices of diamonds. They also used celebrities and fashion icons of the time to wear their diamonds for the world to see. In 1949, Marilyn Monroe - The Original Diva was featured in the Iconic song "Diamonds are a girl's best friend". The song was a massive hit overnight and more-so suddenly diamonds were declared every girl's best friend. Famously De Beers chairman Nicky Oppenheimer once said -

"Diamonds are intrinsically worthless, except for the deep psychological need they fill."

• Indirect Marketing

Most high end luxury brands don't do direct marketing. They thrive on "In the know". Sponsoring celebrities and influencers, to market their products indirectly has helped reach a large audience. 'Unveiling', 'come shop with me' or 'Oops you weren't supposed to see it yet' videos on the internet attract a lot of interest. Discoverability of these products is now very easy owing to this. People who cannot afford these items can identify their logos from miles away - creating a sea of worshippers for these brands, thus generating interest and demand.

What can we conclude from this?

These highly affective marketing tactics employed together over the course of few decades have changed the collective psyche of the people. It has affected the psychological behavior to a level where when you look at a shopping bag with a logo you recognize - its not just a shopping bag, it becomes so much more. High demand low supply, premium pricing, an aspirational positioning, exclusivity and snob value all together make form a perfect synergy to catapult these luxury brands to another level - so much so that the status of anyone seen even holding these is elevated and made superior in the eyes of others.

You may be surprised to know these marketing strategies have been so effective that even the boxes and bags these items come in - which only have the brand's logo - fetch good value. A Hermes shopping bag - Just a paper bag with the logo costs 88 dollars. People buy these bags and boxes with the brands and display them on shelves to resell, to inspire themselves to work harder or just - flaunt.

Such is the need for attention in our times that during the Covid lockdown, some shanghai residents started showing off their wealth by hanging designer bags on their doors to collect covid-19 kits and other deliveries - This news made international headlines!

https://www.businessinsider.in/international/news/fashion-obsessed-shanghai-residents-living-in-lockdown-are-flaunting-their-wealth-by-hanging-shopping-bags-of-luxury-brands-on-their-doors/articleshow/90950555.cms

So coming back to the question - why do the rich don't mind the weight of their shopping bags when they have helpers for other things? Maybe their shopping bags are sponsored and for the brand worshippers to see. Or maybe, they are just saying without really saying - You peasants, I am here - worship me!