|
"Flaunting it"
|
View this Thread in Original format
| dEsidEL |
an interesting article i came across in today's Star..
| quote: |
May 15, 2005. 08:22 AM
Flaunting it
SHARDA PRASHAD
BUSINESS REPORTER
Conspicuous consumption is about indulging in the Manolo Blahink shoes, Rolex watches and Lamborghinis. But it's not just about experiencing the luxury. It's about others noticing your ostentatious possessions.
"Our customers do care what others think about them," says Barbara Atkin, fashion director at Holt Renfrew.
Toronto's high-end retailer carries a large collection of prominent logo-bearing items like Gucci, Louis Vuitton and Burberry purses that start at $500 and can run up to $5,000.
"Individuals in their late 20s and 30s want to acquire status," explains Atkin. "There are young people who forfeit their rent and increase their credit card debt (to shop at Holt's)."
Why? Most obvious is to signal social status, says Ian Skurnik, marketing professor at the Rotman School of Management at the University of Toronto.
"(Conspicuous consumption) refers to expensive and/or luxury items, that other people will notice and admire, or will assume are very expensive if they see them," says Skurnik.
For people inside the circle, it's proof that the consumer belongs, Skurnik explains. For those outside the social group, conspicuous consumption can help establish a position in the social hierarchy. And sometimes, it's a purchase to help the consumer build a self-image as someone who can afford expensive goods or has expensive tastes, Skurnik explains.
Making repeated trips to Holt's means Tom, the doorman, will eventually call you by name.
"It makes customers feel special," says Atkin.
Suddenly, you've gained celebrity status: People notice you're a regular Holt's shopper and you'll know you have arrived.
The theory of conspicuous consumption is not new. In 1776 Adam Smith, the Scottish economist who wrote the classic The Wealth of Nations, noted, "a creditable day-labourer would be ashamed to appear in public without a linen shirt," for fear of being cast in a lower class.
American economist Thorstein Veblen coined the term in 1899 and said people concerned about their social status would conspicuously consume in order to advertise their wealth and ensure their rightful place in society.
It's also a boon to businesses. Luxury goods that offer higher levels of quality, taste and aspirations sell for 20 to 200 per cent more than mid-price goods, notes Michael Silverstein, senior vice-president at Boston Consulting Group and author of Trading Up: The New American Luxury.
These goods offer businesses a high profit margin and it's a market that's growing significantly — between 10 and 15 per cent annually.
Conspicuous consumption allows consumers to experience a social standing they may actually not be a part of by dropping cash on big ticket items like clothes, jewellery and cars.
For instance, observers identify a new category of consumer they call gold-collar aspirationalists. Typically they are blue-collar youths, between 18 and 25, who work in the service sector and like to spend.
Such people, who represent 31 per cent of Canada's 1.5 million working youth, use conspicuous consumption to develop a sense of identity, explains Ian Pierpoint, senior vice-president at market research company Synovate, in Vancouver.
Because these youth often lack a clear career path and don't have mentors, they look to the media and celebrities and to help define themselves.
"For the gold-collar aspirationalists, brands are incredibly important, because it's the only way for them to gain power," says Pierpoint.
"They buy conspicuous items with big logos and famous patterns because they don't want anyone to be in doubt — why spend $700 if no one knows you spent $700?"
If gold-collar aspirationalists are saving, it's for a Louis Vuitton bag, his research noted.
But gold-collar aspirationalists afford their extravagant lifestyle at a cost — they tend to live at home and forego the education — and debt — associated with attending university.
These youth are, "brand lovers and early adopters in almost all categories of goods, like clothes, hands bags," Pierpoint explains. "They're aspirationalists because they want to be someone else."
But it's not just those with less financial means who have a preference for the ostentatious.
A recent American Express survey of Canadians earning more than $200,000 per year found that 78 per cent have the philosophy that "life is for living and money is for spending. They say they like having expensive things such as high-end designer clothes and luxury cars."
Yet, those with big bucks are more likely to indulge in conspicuous consumption, found a Princeton University study.
"Everyone knows that the richer you are, the more money you will spend on luxury," says Ori Heffetz, a recent PhD graduate and author of the Amex study. "(But) I found that the better off a household is, the greater percentage of their income they spend on goods and services that are more conspicuous and visible to society."
As income increases, Heffetz explains, the wealthier are less likely to allocate a percentage of their income to inconspicuous luxury goods like higher quality food for their children, medical service for their family or expensive bed linen.
"These extra dollars are biased toward those things neighbours can see," he says. "That's the new finding."
The reason for this phenomenon, Heffetz says, is that the rich have more to lose if society doesn't recognize their wealth.
"You don't have a direct means to know how much money a person has, but society gives these people social status."
If you rightly belong to the social group, you're missing out if people don't give you the special status that's — rightly or wrongly — reserved for the wealthy.
But not everyone agrees. Keith Sjogren, wealth management leader at Taddingstone Consulting Group, says not all of Ontario's 150,000 millionaires display conspicuous consumption.
"The millionaire community is not a homogeneous one," he concedes. Millionaires can be inheritors, entertainers, corporate executives or entrepreneurs. "Some are looking for a lot of the flash. They are the ones who have high income and low accumulated wealth."
And sometimes the status garnered is not what the owner of the ostentatious objects even wants. It's just a by-product.
"I don't feel people who buy Lamborghinis buy things to be noticed," explains Alex Thompson, general manager, Lamborghini Canada. "They buy it for the experience and the value for their dollar. It's solid and dependable."
That might be true, but take a look the next time a Lamborghini goes flying down the 401. Traffic will slow and heads will turn as the drivers who can't afford the Murcielago for $395,000 or the Gallardo for $255,000 rubber neck it.
But if you're looking to upgrade your social status, don't revert to 1980s-style Me-generation consumerism. Eighties clothing, music and Donald Trump might be back in style, but what's considered conspicuous is slowly evolving.
"You're getting massification of styles and goods," says David Moore, president and CEO of advertising firm Leo Burnett Canada. "More and more people can afford what was once considered luxury. Stores like IKEA and H&M are offering designer styles for cheap prices."
With designer rip-offs making the genuine item tougher to identify, what constitutes Canadian conspicuous consumption might start to mirror the trend in Europe, where "status and luxury are not associated with the Porsche Cayenne in the driveway," Moore explains. "It's about discovering the island in Thailand."
But until Canada's rich indulge in consumption that's this difficult to replicate, regular folks can still buy some status.
"Walking with a Prada bag on Bloor Street is still more important than the (money) that's in it," says Moore.
|
source:
http://www.thestar.com/NASApp/cs/Co...tacodalogin=yes
|
|
|
| Stingray |
Priorities people!
How many people do I know that spend all their $$ on their car/clothes and still live in their parents' house...
Personally I'd rather have the freedom of living on my own than worrying about what strangers think of my new shoes. |
|
|
| zoogla |
| Good joke, Mr. Firebird! LOL! ;) |
|
|
| Stingray |
| quote: | Originally posted by fayraree
Good joke, Mr. Firebird! LOL! ;) |
LOL!!!
I KNEW that was coming!
To be honest though, very little of my money goes toward it...I barely ever drive it caise it's MURDER on gas...
All my money goes to pointless/impulse spending and food.
You've all seen the way I dress...you know my $$ aint goin toward clothing! LOL
Jeez...where DOES my money go...damn woman |
|
|
| VERTiG0 |
I see so much of this from the "wigger" crowd. Wearing super expensive clothing and jewellry, and driving their mom's '96 Camry and working at a factory for the rest of their life.
that. |
|
|
| cmack |
| This is a description of almost EVERYONE I went to highschool with though! I know a few that are STILL at home, in their mid-20's and lots that didn't do post-secondary. I think it's our generation...or where I went to school :haha: |
|
|
| maxtuh |
| quote: | Originally posted by VERTiG0
I see so much of this from the "wigger" crowd. Wearing super expensive clothing and jewellry, and driving their mom's '96 Camry and working at a factory for the rest of their life.
that. |
the funny part is some people who i work with are happy where they are doing the same repetitve job since the last 30 years.
i work at amex, and they gave us those stats like last year, these people are high spenders, and they are right, if you make a lot of money what good is it? you need to spend..
well you can save a little..:D |
|
|
| TeMPo.fLUx |
| quote: | Originally posted by maxtuh
well you can save a little..:D |
save for what exactly???
you live only once.. you gotta live in the present..
(okay.. i didnt read the article.. 2 damn long :p ) |
|
|
| zokissima |
| Wiggers, hipsters, and all sorts of fashion conscious people. Quite a large number of people buy into this. |
|
|
| maxtuh |
| quote: | Originally posted by zokissima
Wiggers, hipsters, and all sorts of fashion conscious people. Quite a large number of people buy into this. |
well i think everyone does, everyone will buy something cool once a while..
wait a min i just bought a new computer, and its fasssst:D |
|
|
| PartyHarlequin |
Ok, now I definitely can't bash the LV wearers (meekly admits to sporting a LV wallet). But honestly if you don't have the money to spend on the stuff you shouldn't. If my wallet meant not having money for rent then I most definitely would not have the wallet. But if you've got it, there's no reason not to spend it on the things you like. I think 5k purses are rediculous, but Burberry golf line is like mega to die for and worth it if you've got it IMO @ $300.00 a T-shirt. I'm a complete supporter of the insane attention to detail and quality that goes into a lot of the genuine products (and design inspiration). Now not all of them should be indulged (biggest point is the LV clown bag as I like to call it) the white one with blue green etc... logos. That s just ugly. And Hugo Boss dress shoes are a damn sexy accoutrement (except for the not being able to wear them outside). YA that's a mega downside I've noticed, UBER nice clothes seem to be meant to be worn in completely relaxed/clean/low impact/not the sidewalk/bus etc... environments. So the shoes come out like once a month and the suits come out less than that (which sucks cuz I love suits, but can't justify wearing them in the summer). PRADA has a little line - "There's nothing wrong with striving for perfection, and there's nothing wrong with looking good while doing" or something like that. It's true appearance matters in this world. If you're a businessman/lawyer etc... Your clients/partners like to see that you're personally successful and thus obviously more capable of servicing them and their business. If you work on Bay street every detail about your appearance is important. The reality is that how you look matters not, but attention to detail in the care of self often indicates a high standard and attention to detail in everything else you do. Note: Everything I've said does not apply to those that inherit money or win the lottery etc... Those people tend to be useless and spend in completely frivolous ways, they don't know what it takes to get the shoes, they just want them. No discipline = no worth.
P.S. Rappers with the exception of a few are prime examples of those who do not know how to make the money they spend. It's why MC Hammer cleans toiletes (sp?). |
|
|
|
|
