Celebrity Branding and Ultra Luxury

Will affluent consumers pay five figures for a handbag based on a pop celebrity branding? That the topic discussed in a New York Times article, referring to Victoria Beckham’s $30,000 alligator skin handbag and the $34,000 alligator skin backpack by Mary-Kate and Ashley Olson. Apparently there’s a waiting list for the backpack much to the dismay of a client marrying into a “very prominent and affluent Russian family”. Ah well.

Other celebs have entered into expensive retail branding such as Chloë Sevigny’s $400 shoes for Opening Celebrity, and Katie Holmes’ suit jackets which sell for $2950 at Barney’s. Up until now, celebrity branding has been somewhat down market, as the article mentioned, “for teenagers, the movie star obsessed and shoppers seeking Hollywood glamour. Jeans by Jessica Simpson, athletic shoes by Kim Kardashian, (and headphones) have been inexpensive and accessible.”

In the short term, the status appeal should make extravagantly priced goods “hot items”. But for the long term? Doubtful.  Even assuming there’s enough quality, exceptional design and workmanship to give inherent value to the products, and assuming there are limited editions, will these be classics that will someday command the prices of vintage Hermes or Chanel (a factor if I were buying a bag like this)? Where’s the brand story of heritage and authenticity?

Maybe it’s all a publicity stunt to create buzz for the brands. Now that’s a different marketing story.