Labels: Is all that glitters truly gold?

By Eliana Rocchi | amdlawgroup.com
Designer garments might cost a lot of money. Yet, a large number of consumers are willing to go the extra mile to buy them and would choose the high end designer label over a less known brand of clothing or a no-brand. No matter if they can easily afford it or not. Is that reasonable? Are consumers paying for the product they are buying or just for its label?

All About Labels

By Ann Marie Sallusti | amdlawgroup.com
Some consumers are more interested in buying a product for the label or brand it represents rather than the functionality of the product. Regardless of the price, a consumer may be willing to spend more money to own a product with a well-known label, such as Starbucks, Louis Vuitton, Apple, and Ralph Lauren. There may be a cheaper product on the market, but the consumer will pay extra money to own and use a popular name brand. The consumer is essentially buying the product for its label. The label is important to some consumers to determine whether it will be a worthwhile purchase. In an article written by David Ning, he explains some helpful details to consider before splurging on a designer product. For example, he discusses the design value, the importance of the item to the consumer, and whether the product is classic or seasonal. A product can be “in style” for a particular length of time, where the product value eventually expires. On the other hand, classic products are timeless, where the product value never expires. The value of the product is often calculated by society views and the importance of the item to the consumer. Even though one consumer may believe a product is seasonal, the same product may be invaluable to another consumer.

“Made-For Outlet” Fashion Lines: Friend or Foe?

By Christina Severino | amdlawgroup.com
The advent of outlet malls during the 1980s once primarily served as a depository for surplus and blemished merchandise of manufacturers. However, consumer demand for luxury brands in a lackluster U.S. economy has soared in recent years. There are currently over 13,000 outlet malls in the U.S. alone, each covering roughly 200,000 square feet. The demand has gone up so much that some brands are producing discounted lines specifically for outlet shops. For example, companies such as J. Crew and Ralph Lauren have designed lower-quality lines which mimic pieces found in their traditional store fronts and high-end department store chains. J. Crew has recently announced plans to open its own line of discount stores, “J. Crew Mercantile.” Retailers such as these will surely go toe-to-toe with “fast fashion” brands such as Forever 21, who rapidly produce low-priced replicas of lines fresh off the runway. They will also create another profitable channel for luxury brands, in order to reach cost-conscious consumers. On the other hand, will doing so threaten the command of the most sought-after labels?