Branding: It’s in the Bag

Would you pay $9,000 for a handbag? How about $150,000 or more?

Plenty of people do. In fact, the Hermès Birkin bag, created in 1984 for actress/singer Jane Birkin, is so coveted that it commands these prices and is reputed to have a 36-year waiting list. But why?

The handbag has come to represent success, achievement and status. As one handbag blogger wrote, “The Birkin is more than just a bag, it’s a lifestyle.”

The woman who buys a Birkin is not buying a bag that will serve a function in her life. She is buying into a brand — her perception of what the bag stands for — and she will willingly pay a premium to join this exclusive club.

Irrational, you say? Most certainly. And that is the power of a great brand. A great brand can drive profits, big profits. It can protect you from your competition. And it’s nothing more than perception. Pretty amazing.

Build your brand. Shape audience perception. And then laugh all the way to the bank, preferably carrying a Birkin stuffed with cash.

Do you know what your brand stands for to customers and prospective customers? Do you guard it like the irreplaceable asset that it is? How can you leverage branding to improve your business performance?