Many people associate luxury brands or designer labels with esteem and prestige because they want people to see them differently. The appeal of luxury products cannot be resisted, but there are other better options that can save you money. Unless you earn a high salary, buying luxury products can be expensive. Keep on reading to learn if buying luxury brands is a waste of money or not.
Consumer Behavior
Some buyers don’t act rationally because they fail to apply logic or reason when they buy certain products. Other people are not in a strong enough financial position to afford luxury brands, but they buy them for the sake of prestige. High-quality and durable alternative products can be obtained for a few hundred dollars, but some individuals choose to spend thousands of dollars for the same item.
Quality of the Product
Luxury brands market a wide range of products, including pricey sneakers, expensive watches, designer clothing, makeup products, extravagant cars, and more. While luxury brands promise the best quality, it is not always true that a high price tag means superior quality. In some cases, you may find better quality in a product that is half the price of a branded item.
Therefore, many people end up paying for the marketing of a specific product without paying attention to aspects like quality. According to professional marketers at Common Cents Mom, luxury brands are believed to offer the best quality because of their history. However, there is a common misconception that overemphasizing the positive elements of certain products while ignoring their disadvantages can mean the quality is dubious. Although other brands produce superior and unique products, there are also lower-priced items with better features. Therefore, it does not necessarily mean that you get the quality that matches the price you have paid.
Branding
Designer labels can be considered a waste of money because the price is determined by branding ahead of other factors such as quality and durability. As a result, the prices of luxury goods are inflated because of the brand’s name and hefty marketing. However, you can still appear stylish and trendy with non-luxurious clothes if you shop wisely. You don’t necessarily need to break the bank to look good since there are several options available.
The truth about branding is that it is a marketing gimmick specifically meant to brainwash buyers. When people see celebrities wearing designer clothes, they associate them with success. Suppose you’re enticed to buy the brand. Very few people in your society might notice that you’re wearing a designer label. If you aim to draw attention or impress other people, it might not be worth buying expensive brands because the statement you may be trying to portray can go unnoticed.
Self-Esteem Affects Buying Behavior
Some people think they will gain respect and appreciation from their community if they buy expensive things. Therefore, buying expensive items can go a long way in creating a sense of belonging to a group and increasing self-esteem among different individuals. Other people get a sense of accomplishment by purchasing luxury goods because they see it as a way of rewarding themselves for their achievements.
Many people buy luxury brands as a result of the emotions they attach to certain products. While the desire to make a statement by buying designer labels might be irresistible, it does not make economic sense in some cases, especially when there are better and more affordable options. The extortionate prices make people believe they will be regarded in high esteem by their peers. However, you should not force matters for the love of pleasing those around you. If you can afford the luxury, then good for you.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
