Monday, October 5, 2020

October 5, 2020 - Nobel Prize in Medicine won by Harvey J. Alter, Michael Houghton and Charles M. Rice for discovery of Hepatitis C virus

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TradeBriefs Editorial

From the Editor's Desk

The Mystery of the $2,000 Ikea Shopping Bag

Why does luxury brand Balenciaga sell a $2,000 purse modeled after a $1 blue Ikea shopping bag? What's behind the craze for seemingly distressed and worn-out Gucci sneakers? What is Sarah Jessica Parker doing rummaging through the dusty clothes in Rome's Via Sannio flea market? Why is Cracco, a Michelin starâ€"winning Italian chef, using commercial potato chips in his dishes?

We tend to think of status symbols starting at the top tiers of society (among the glitterati and trend setters of high society) and then trickling down to the rest of society. But a new trend seems to contradict this pattern. Instead of adopting a new luxury product or embracing fresh high-end tastes, an increasing number of prestigious brands and celebrities are adopting lower-end fashions and items (e.g., duct-taped shoes, plastic shopping bags, street food). Intrigued by these puzzling examples (this one in particular: a high-end perfume made to look like a household cleaning bottle), we decided to adopt a signaling perspective (that is, to understand how consumers use products and brands to signal who they are) to try to make sense of this phenomenon.

Continued here


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