A wake-up call for shoppers
Payless Shoe Source created an experiment to test the perception of their shoes. The goal was to reclaim their place in the world of affordable fashion. But the event’s wild success is a wake-up call for shoppers everywhere. See what happened and how you can protect your wallet.
What Happened
For the experiment, DCX rented a former Armani store and dressed it up with all the trimmings of an authentic designer-brand boutique. They chose the name Palessi, a blend of the word “Payless” and the Italian name “Alessi,” hoping the foreign association would evoke feelings of a genuine designer brand. To complete the trick, DCX created Bruno Palessi, a bogus Italian designer behind the brand, and even launched a Palessi website to cover their bases if someone Googled the name.
They filled the luxury store with cheap Payless shoes, swapping the tags for Palessi labels and marking up prices to 1,800 percent. Then they reached out to 60 fashion influencers — celebrated trendsetters to whom shoppers look for fashion cues — and offered them compensation for attending their designer brand’s launch party in an upscale Los Angeles mall.
The fashionistas believed they were shopping in a designer store. And the event organizers watched as these influencers, who are allegedly in the know about all things fashion, went wild over cheap Payless shoes.
“It’s just stunning,” one shopper gushed over a flowered stiletto heel. “Elegant, sophisticated.”
“I can tell it was made with high-quality material,” said a man fingering a pair of leather sneakers.
“I would pay $400, $500,” another fashionista said about the shoes. “People will be like, ‘Where did you get those?’”
The influencers spent $3,000 on shoes within hours of the grand opening, paying up to $645 for shoes that normally retail between $19.99 and $39.99.
At the end of the event, the company came clean — and shoppers were stunned.
“Shut up! Are you serious?!” one influencer exclaimed.
“You’ve got to be kidding me,” said another shopper who was enamored by a pair of Payless heels.
The shoppers got their money back but were allowed to keep the shoes. The social experiment succeeded in shifting consumer perception of the brand, and it also serves as a sobering reminder of how easily we can be duped by designers.
What we pay for
Shoppers pay for the packaging of products as much as they pay for the actual goods.
Consumer behavior consultant Philip Graves says consumers cannot determine the actual quality or value of goods. He explains: “The way that we evaluate things is through associations. If you put wine in a nice bottle, people like it more. If you package things up to look more premium, people will like it more.”
In brief, branding is everything.
Michael R. Solomon, a marketing professor at Saint Joseph’s University, writes that consumers automatically link the following factors with excellent quality:
- High prices
- Lavish venues
- Products from certain countries
The snob appeal and the packaging make us believe a product is a premium—not the product itself.
How to beat the system
If you are willing to pay for labels, you may not be any better than the trendsetters who were tricked by Payless.
Are you paying for the shopping experience? For the designer or foreign label? For the high prices?
This experiment proves that you can buy clothing, shoes, and accessories for 1,800 percent less than top brands. Many products are virtually identical in style, quality, and look. Of course, you won’t get the designer tag or trappings. Is it worth paying hundreds of dollars extra just for a name and packaging? A wake-up call for shoppers- I would say so! Make sure you do not pay more for something just because you can. Like this post? Check out our other posts on the MoneySmart Tips Blog.
