In times of instagram, youtube and other social networks and platforms, luxury and the ability to afford luxury seems to be widely spread which might lead to the fact, that an uncertain amount of persons will jump on that wagoon, too, and will feel the urge to keep up with the Jones (do you say Jones? Not sure here). Marketing always worked that way- show the average person an obviousyl happy, healthy, perfect life living role model and it will make this person willing to spend big bucks to feel the same way and to live the same life - even harder if the role model is "reachable" and not a super star - which, as we know won't work nor make sense at all, but alas.
Plus: increasing prices and the intel on those prices might make seem those pricing less shocking. I remember seeing an add of an LV mulitcolor Speedy back then, before we had the currency-change. It was about 800 DM (which is around 400 USD now). Though I earned good money, that price seemed shockingly high and I couldn't even wrap my head around spending more than my rent on a bag (though I am still sad that I didn't buy it). Today it doesn't seem to be a big deal to spend that money, first as prices have increased that much overall and second as you see ( or THINK to see) so many people, beeing able to afford that money in a heartbeat. That validates these amounts.
And, most surely brands do pay influencers, hell, we even had a few ICOs on paying methods for influencers. And here one thing lead to another- having desired content attracts followers who are willing to spend their money, who are also influencing others by carrying those brands while walking on streets who will increase the request for other chanels to do unboxings, OOTD and so on. And here it goes, the ciculus vitiosus.
I, personally couldn't care less about the hype that broke loose. I personally do care about the hype that is bubbling actually right now when it comes to real estate as the same mechanism apply. As a landlord I am terrified what's happening right now, but this is another story. And at the end of the day: except for bags and real estate, there was aways a good that was highly sought after and by any means only available for very few people. I grew up with the rule that a car mustn't cost more that 1/4 of your yearly income, has to be paid cahs except you are running a business, yet I see Porsche, BMW, Merzedes, Audi everywhere I go or stand, most of them brand new.
Nobody having their mind together would ever go into debt to borrow a car, albeit people do. Nobody would pay over a million Euros for a (let me try to translate) "house in the middle in the pampas" while having an average yearly income (that is around 24.000 Euros net over here pp), yet people do. End of story: People tend to invest not very wisely, tend to act stupid and mostly if there is a keeping up with the Jones- moment involved. Luxury industry was just smart enough to play that card and found dozends of willingly role-models posting their perfect lives on instagram facebook and Co. The bill, on the other hand, is on the average customer who thinks it might be a good idea to go into debt for: a bag, a car or a house (well, that house thing is another story, the very least will be able to pay real estate cash. But 120 % financing up to the age of 80... well... This is how a crisis starts. But that's another story).
