Iconic marketing campaigns of the last century

The theory of conspicuous consumption was introduced by economist and sociologist Thorstein Veblen in his work The Theory of the Leisure Class (1899). Veblen argued that people often purchase goods and services not only for their utility but also as a way to display wealth and social status.

Veblen writes, “In order to gain and to hold the esteem of men it is not sufficient merely to possess wealth or power. The wealth or power must be put in evidence, for esteem is awarded only on evidence” (The Theory of the Leisure Class, 1899).

The difference between value and cost is always relative

I’ve written before about how Walmart may be one of the most recession-proof businesses in the world. Why? Not simply because it’s cheap, but because it offers better value. It’s important not to confuse these two terms: value is subjective, determined by a product’s importance to the consumer based on its necessity, shelf life, and quality, while cost is merely relative to average income and competing options.

During downturns or periods of high inflation, Walmart’s model allows millions of customers to purchase the goods they value highly, including essential items, at a lower cost than the competition. However, if Walmart’s $20 t-shirts last one year, but T.K Maxx’s $50 t-shirts last three years, in theory, Walmart’s value for money would be lower due to the shorter shelf life of the product. Yet Walmart has built a powerhouse by focusing on providing items that people need: high-value items, at a low cost.

On the other hand, some industries, unlike Walmart, concentrate on goods that are quite the opposite. These are goods and services where the consumer is buying not out of necessity, but out of desire, often defined as “luxury.”

The Consumer Sentiment Index (CSI)

The Consumer Sentiment Index (CSI) is a measure of consumers' confidence in the economy, assessing their current financial conditions and expectations for the future. Developed by the University of Michigan, the index is based on monthly surveys that ask a sample of consumers about their personal finances, the general economic outlook, and buying conditions for major purchases.

The higher the value and the lower the cost of an item, the more resilient it is during economic downturns (the Walmart model). In contrast, brands offering luxury items that lack essential value for the customer are generally more vulnerable to changes in consumer sentiment. The brands that suffered badly during the e-commerce crash of ’22 were largely those with higher-cost items (also because trade tariffs caused COGS to rise) and low-value, non-essential products.

The perception that high cost also brings high value in the boutique fashion industry

Boutique fashion and jewelry are prime examples of high-price markets that cultivate incredibly powerful brand followings. They can evoke "evidence of wealth," as Veblen describes, by conveying that spending a large amount of money not only increases a product’s perceived value (often by controlling supply) but also suggests that owning the product is essential for staying relevant. The benefit of this niche, is that it’s typically targeting consumer with greater financial flexibility, to put it politely.

For me, two of the most iconic campaigns include De Beers' A Diamond Is Forever and the Audrey Hepburn classic: Breakfast at Tiffany's. These are timeless examples of campaigns that reshaped the luxury jewelry landscape for generations, establishing diamonds as symbols of eternal commitment and exclusivity. While diamonds are scarce, consumers believe that the perceived scarcity of a non-essential item makes it essential, thereby inflating its personal value.

Though demand is key, especially in precious stones, fashion functions more as an everyday commodity compared to diamonds. However, when executed exceptionally, fashion holds immense value for founders, offering a rare opportunity to build lasting consumer loyalty and brand equity. Within this niche, consumers tend to focus less on cost and more on perceived value, making luxury fashion less sensitive to shifts in consumer sentiment.

Before my agency experience, I would have assumed fashion to be one of the more challenging industries to advertise. At Igloo, we’ve found that boutique fashion brands, while very much dependant by factors like product quality and design, offer remarkable insights into consumer loyalty. With some customers exceeding 10 purchase cycles, these brands operate similarly to subscription services, showcasing impressive lifetime value. The higher price point and a less price-sensitive target market give founders greater flexibility to allocate budget strategically and scale with more leniency due to higher CPA targets.

By contrast, selling low-value fashion products is significantly more challenging. While lifetime value may remain strong, often tied to new product drops or seasonality, the lower price points lead to thinner margins and a higher percentage loss on product returns relative to net income. This makes scaling profitably much harder, limiting flexibility when testing trends or experimenting with advertising. Consequently, lower-value fashion is often better suited for B2B and retail models, rather than competing heavily on paid channels like Google or Facebook.

Outpaced and overcrowded: Is technology weakening the impact of brand building?

My biggest takeaway from years spent in the trenches with brands and founders is this: everything today is amplified. It’s faster, louder, less organic, and far more competitive than it was pre-social media and even pre-TV, where many of the most iconic campaigns originated. In the e-commerce space, countless brands now sell products that are mere variations of each other, relying heavily on ambassadors and social media to drive awareness. The marketplace is saturated, and convincing shoppers that you’re different has never been more challenging.

In a previous article, I quoted: The world has slowly shifted from wins being defined by selling what people need to what people want, and technology is merely a host of that virus. I still firmly believe in that statement, and it remains an Achilles' heel in the founder's ethos today, as many rush to build brands quickly without fully considering the importance of experience and the impact of stereotyping.

High-cost goods with strong brand equity (and therefore high perceived value) tend to be at lower risk in this climate. If you’re advertising on Google or Facebook, communicating your message without precision is increasingly difficult. While brand-building tools are more accessible than ever, I hope this doesn’t deter founders from innovating and creating brands that paddle against the current.