Shaken or stirred, with Gucci ice cubes

Imagine a cookie or an ice cube branded by Louis Vuitton or Gucci. Luxury has surely made inroads into areas earlier never fathomed. So is that designer cookie more delectable? Apparently, yes. Thanks to the power of the logo. 

In my book Dark Luxe, I have written about the power of logo and how it acts as a seductress to the flaunters, whose primary area of appreciation is the logo of luxury brands that they can flaunt. So, to them, more than the craftsmanship or legacy of the brand, it is the logo that matters. They pay for value for the label. As long a logo has a flaunt quotient, they will keep loving it, irrespective of anything else.

The power of the logo has its positives as well as negatives. Let me first deal with the positives first. 

Creates brand awareness: One of the biggest advantages of a logo is in creating brand awareness among the customers. Once a brand custodian is able to create an aspirational quotient with their products, it is the logo that furthers that craving with the customers. Whenever one sees the logo, there will be an increased need for owning it. This aspiration impacts all the customer categories but is most dominant among flaunters, who will flock to the nearest boutiques to get their hands on this desirable logo. For them, what they are buying will not matter much. It can be a bag, a dress, shoes, or accessories such as a coin purse or sunglasses. Their purchases are never conventional or need-based but based on the desire to flaunt the new logo in the town. 

Keeps the counters ringing: The flaunters also contribute significantly to the sale of masstige products. (For more on the masstige, read the previous column 'Masstige game: How to win both Praja and Raja'). Masstige is all about the logo. It's no wonder that they benefit the most from the increased desirability of the logo. So they contribute to the sheer volume of luxury consumption. 

Now let us look at the negatives. 

Rise of counterfeits: The more desirous the logo, the more desperation it creates among consumers. If you are not happy with masstige products, the counterfeit e-bazaar is just a click away. No wonder the most counterfeited logos are Louis Vuitton and Rolex. Growing at a compounded annual growth rate of almost 40-45%, the counterfeit luxury products market in India is likely to more than double to Rs 5,600 crore by 2022 from the current level of about Rs 2,500 crore. A reason why the market of luxury fakes is growing at such a fast pace is the advent of e-commerce platforms selling the goods at lucrative prices. Web shopping portals account for over 25% of the fake luxury goods market in India.

Notional business loss: One has to understand that flaunters not always belong to the Great Indian Middle Class, but can be Richie Rich as well, but instead of big-ticket purchases, they will go for a token purchase just to own the brand. This leads to notional business loss. So, for example, instead of buying a Louis Vuitton trunk, a flaunter ends up buying a coin purse. 

To conclude, even with all the shortfalls one can never deny the sheer power of the logos. Luxe dazzles its customers and owning the logo creates a sense of belonging in them, which makes them feel special, as desirable as the logos. 

The writer is a luxury commentator and author of Dark Luxe and Decoding Luxe