Chapter 120 Question 108

Why is Victoria's Secret offering multi-million dollar diamond-encrusted bras when no one ever buys them? (Stephanie Winstrup) For the past decade, Victoria's Secret (the top lingerie brand in the United States) has always featured an extremely expensive gift in its annual Christmas catalog.The company launched a diamond-encrusted magic bra worth more than one million dollars in 1996, designed by supermodel Claudia.Claudia Schiffer endorses.The following year, Harry on Fifth Avenue in New York.Winston (Harry Winston) jewelry showroom, Tai Ya.Tyra Banks, wearing a 1997 Victoria's Secret Super Gift, a $3 million diamond-encrusted and sapphire bra, appeared in an armored vehicle.This series of products in 2006 was created by the top diamond brand Hearts On Fire, supermodel Carolina.Karolina Kurkova endorsement, the price tag is 6.5 million US dollars.Considering no one has ever bought a diamond-encrusted bra, why does Victoria's Secret still roll it out every year?

The company probably never hoped to sell the bras.Diamond-encrusted bras are available, which may lead to sales of other products, so it can be considered a successful approach.Diamond-encrusted bras continue to attract the attention of the media, bringing the Victoria's Secret brand to the attention of potential customers. The company is well aware of this benefit, knowing that a new launch won't attract more attention unless it's more flashy than its original counterpart.It doesn't matter if you can't sell it, because diamonds are easily recycled and can be used many times.

But one of the most important benefits of diamond-encrusted bras is one that economists often overlook: Once they appear in catalogs, people's frame of reference for how much to spend on gifts changes.Victoria's Secret has creeped into people's consciousness the idea that someone else spent millions of dollars, so that spending hundreds of dollars on a gift seems less absurd.It's easy to imagine a husband, eager to please his wife, who just saw the $6.5 million Fantasy Bra, and shells out $298 for one of the company's premium bras. Smart.