China, Chanel and the inevitability of branding

The internet is awash with viral videos of Chinese factories offering apparently the same Chanel, Gucci, and YSL bags people pay so much for — for literal peanuts.

And it’s easy to think luxury brands were just ripping people off. But those bags aren’t quite the same. And soon, people posting receipts that theirs came from a “real, different” source may become the new thing.

Because the brand premium isn’t just a profit markup. It’s what helps the customer feel better about themselves.

Yes, it’s materialistic. Yes, it’s vain. But people want what they want. While some wear designer brands to feel they matter, others engage certain companies or communities to signal their values.

So yes, China may dent some brands. But not branding.

Yes to some dent because even emotional buyers (all of us, to different degrees) want a factual reason to justify our choices. It’s why Apple always say, “this is the best thing our engineers have ever built.” Great quality, yes, but not the only reason we pay so much.

No matter how much you 'reveal' that products cost far less than their price tag, many still pay more, to earn the feeling baked into the brand.

The real question: What does working with you or your company help your customers say about themselves?

For many, the answer is: nothing. And that’s the brand gap.