The world of luxury fashion would be incomplete without the mention of Hermès, the iconic French brand synonymous with its coveted Birkin bags. Renowned for their premium craftsmanship, intricate embroidery, limited availability, and jaw-dropping price tags, Birkins are dream possessions for fashion enthusiasts and collectors alike. Recently, Hermès’ artistic director, Pierre-Alexis Dumas, stirred controversy with remarks he made during an interview with 60 Minutes. Dumas described Hermès products as “costly but not expensive,” defending their exclusivity and price.
“I always heard that Hermès is very costly. It’s not expensive, it’s costly. The cost is the actual price of making an object properly with the required level of attention so that you have an object of quality. Expensive is a product which is not delivering what it’s supposed to deliver, but you’ve paid quite a large amount of money for it, and then it betrays you—that’s expensive,” Dumas said.
Indianexpress.com spoke to a psychologist and found out how the perceived value of an item drives up its worth and why people are so fascinated by luxury products.
“The perceived value of an item plays a significant role in driving up its worth because humans often assign value based on exclusivity of the products, its rare existence and social status,” said Juhi Pandey, psychologist, MPower Helpline. According to her, there are several reasons why people are drawn to luxury items. Some of them are:
Exclusivity: “Luxury brands create an impression that not everyone can own their products, even if they have the money. This strategy of selective branding enhances their appeal,” said Pandey.
Feeling of inaccessibility: The scarcity and inaccessibility of luxury items fuel a sense of desire. “People often wonder why they can’t have what is seemingly meant for a select few. This exclusivity acts as a psychological hook,” Pandey explained.
Neuroscience and luxury: Purchasing luxury goods activates areas of the brain like the nucleus accumbens and ventral striatum, which are linked to impulsive desires. Pandey said, “Dopamine, a neurotransmitter associated with pleasure and motivation, is released during such purchases, enhancing the sense of reward.”
Craftsmanship: The exceptional attention to detail and superior craftsmanship attract individuals who value precision and durability. “Many luxury buyers appreciate the effort and skill behind these items, which align with their own standards of excellence,” Pandey said.
Pandey mentioned that exclusivity and high pricing often signal quality and prestige, which drive the demand for luxury goods. “The pleasure of owning something rare activates the brain’s reward system. Cognitive biases like anchoring and the endowment effect also play a role, as people inflate the value of items based on initial price points or personal attachment,” she said.
Ultimately, the desire for status, recognition, and self-fulfillment makes luxury goods highly appealing.
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