Dan Ariely And The Psychology Of Fakes

Dan Ariely, author of the book Predictably Irrational and an lecturer in behavioral economics at MIT, is currently working on a project around luxury brands – particularly around the emotional aspect of counterfeit products. His current hypothesis on luxury brands and counterfeiting is that luxury brands could find more efficient ways to decrease consumer enthusiasm for fakes.

When people purchase counterfeits, says Ariely, they think only about how much money they have saved.

What they fail to predict is how it will make them feel later on – for example – when they go to a party and receive compliments on the product. The internal knowledge that it’s fake will have an effect on their internal psychology; producing a kind of internal shame. While other people think you are projecting a positive image, but internally you are aware that you are not.

Says Ariely, “And that turns out to matter. We wear brands not just for the outside world but also for the inside world and it changes the way we behave. When we give people real and fake sunglasses and let them walk around campus then see how much they cheat people who wear fake are more likely to cheat. The notion there is once you have tainted yourself, once you think of yourself as a cheater, it’s easier to make the next step. Based on this, it’s not just important what brands are telling consumer, but it’s also important what consumers are telling themselves; how consumers are using brands to inform themselves.”

Ariely believes that the work that luxury brands have done to try to connect counterfeiting to terrorism and child labor is less effective than stimulating this internal idea of internal shame at point of purchase.

The implications of this are enormous for those luxury brands which are losing significant business to counterfeit products. It suggests that the strategic issue for luxury brands is to reconsider the dramatic ways in which they have demonized counterfeiting in the past – fakes boost terrorism, fakes involve child labor, buy a fake and be stopped at customs etc. Instead the opportunity is to ‘internalize’ the appeal, to communicate more on the personal psychology of the feelings associated with owning a fake.

Ariely believes that encouraging consumers to think about the idea of ‘identity’ is potentially a more powerful way to tackle the issue.

His work on the psychology of counterfeiting is still underway, results will be published at the end of his research. Dan Ariely can be contacted via his website – Predictably Irrational
Image (C) Zevs

Gucci Pops-up in SoHo

Gucci pops-up its Gucci-Icon Temporary Shop on 43 Crosby St. in New York’s SoHo tomorrow morning at 10 am. Featuring its signature colors, Gucci's white-washed walls are covered in the signature evergreen and red stripes, Gucci will pack up as soon as its wares — which include the Gucci Ronson sneaker, a collaboration with celebrity DJ Mark Ronson — are sold out. "The company is hoping to close the space even before its two-week run is over,” reported WWD.

Let's see if this store will make it past this weekend.

Farewell Captain Lou

Legendary wrestling figure Captain Lou Albano, perhaps best known for his association with pop singer Cyndi Lauper, died Wednesday, according to World Wrestling Entertainment.


Captain Lou Albano reached a new level of fame in the '80s with his association with Cyndi Lauper.

Albano, 76, was "one of the company's most popular and charismatic legends," the company said in a statement.

The cause of death was not immediately disclosed.

"Albano began his storied career with Vincent J. McMahon in the 1960s as one half of 'The Sicilians' tag team with his partner Tony Altimore," the WWE said. "He will be greatly missed by the WWE and his fans."

Albano, who was with the WWE from 1983 to 1996, was inducted into the WWE Hall of Fame in 1996.

He started as a tag team wrestler in the 1950s but became a successful manager of champion wrestlers in the 1970s, according to a biography on the WWE Web site.

Albano was recognizable by his penchant for unbuttoned Hawaiian shirts and a trademark beard, which was usually bound by a rubber band.

His persona earned him the distinction of "one of the most hated men" in wrestling for 15 years, the WWE biography said.

Albano's image evolved in the 1980s, when he teamed with Lauper on several music videos, such as "Girls Just Want to Have Fun," and wrestling appearances.

As his celebrity status grew, Albano landed acting jobs, including a role on several episodes of the "Miami Vice" TV series, the biography said.

Albano became a cartoon in 1989, when he was the voice of Mario "Jumpman" Mario for 17 episodes of "The Super Mario Bros. Super Show!" according to the Internet Movie Database.

The Upper House HK

The Upper House, designed by architect Andre Fu, is Hong Kong's newest and most innovative boutique hotel. Tucked away on the 38th floor, guests of the Upper House are guaranteed to relish in the magnificent views below. Images courtesy of Michael Weber Photograpy.

New York Millionaire wants to buy Malo

By Teri Buhl

A New York financier wants to scoop up one of Milan’s treasured high-end fashion labels out of an Italian bankruptcy. Franco DeRose, luxury Upper East Side private investor, flew to Milan today to make a bid for Malo. Malo, a 30-year-old Italian sportswear label who boast a Madison Ave address, is best known for it super luxury cashmere.

Malo’s parent company IT Holding SpA filed for bankruptcy protection in March when it couldn’t make its bank loan. The company had a 10 million Euros net loss as of last September. When the Italian government took over it appointed three administers to cobble together a 6th month restructuring plan. Well those six months are up and as of September 24th the Italian ministry announced they were interested in accepting bidders for the groups’ assets.

DeRose has partnered with an Italian industrialist who wished not to disclose his name until the deal is sealed. The amounts of the offers are being kept secret through a silent auction. DeRose is no cub to deal making and is known as a tough negotiator. As a former M&A star at Goldman Sachs he left in his early 30’s to successfully build wealth through his own deal making finesse. One stumbling block he will have to convince the Ministry of is his desire to keep design and production jobs within Italy. DeRose ,who spends his summers sailing off Sardinia, understands the importance of fashion as a staple to Italian economy.

While in Paris for Fashion week DeRose told The New York MiNute, “There seems to be opportunities for investors willing to buy brands which will need to adjust to the economic times. Margins and revenue have declined but there are opportunities available for the right price! Investors must realize that it is a capital intensive business and be willing to make an investment in the brands.”

Early this spring Malo lost its head designer Alessandro Dell’Acqua because he felt frustrated with Malo’s handicapped resources and problems with its suppliers cramped his creative process. IT Holding choose not to replace him. When asked if the lack of a big name designer was a concern DeRose said, “You can always find a designer-that is easy- buying it at the right price is harder.”

Reuters reported early this year that Malo sales revenue for the first nine months of 2008 was 35.7 million Euros. IT Holdings did not return a request for comment about current sales figures or net profit/loss for the label.

Editors Note: Teri Buhl is a financial journalist who has written for Trader Monthly, New York Post, Dealbreaker, Fashionista, HousingWire, and Bank-Implode.

Tomas Maier Bottega Veneta

Tomas Maier has created a limited edition Bottega Veneta Cabat inspired by the iconic Yellow Cabs of NYC, called the NYCabat. The black nappa leather has been hand woven and hand brushed to reveal the iconic taxi yellow undertone, which makes each piece totally unique. The sterling silver plate on the interior will be engraved with the edition number and NYC.

“I loved the graphic black and yellow of the taxi cabs when I first visited New York City in the 1970s,” says Creative Director Tomas Maier. “For me, as for many others, the taxi was shorthand for New York: bold, unyielding, exhilarating, a vehicle, quite literally, to so many possibilities. The new Cabat reflects my feeling that, as much as the city and the world have changed, New York remains incredibly vibrant.”

Limited edition of 50, available exclusively at Bottega Veneta Fifth Avenue.

Yohji Yamamoto files for bankruptcy today

Yohji Yamamoto, the Japanese fashion designer whose company filed for bankruptcy today, will continue to design the Y3 sportswear line for Adidas AG.

Adidas has a “long-term cooperation” with the Yokohama- born designer that is expected to continue, Kirsten Keck, a spokeswoman for the German sporting goods company, said in a telephone interview. Y-3 has delivered far beyond Adidas initial sales expectations, initially appealing to a sport conscious fashion forward consumer. However, with the continued expansion of Y-3 stand alone stores, it remains to be seen if the allure of Y-3 will continue for much longer.

Yohji Yamamoto Inc. filed for bankruptcy today in Japan amid slumping global sales, the company’s French creative director, Irene Silvagni, said today in Paris.

The Japanese company’s debts totaled six billion yen ($67 million), more than its assets, according to Associated Press. Integral Corp., an investment company based in Tokyo, will “sponsor the firm’s rehabilitation,” Nikkei reported earlier today.

Dennis Hopper: Photographs 1961-1967

During the 1960s, Dennis Hopper carried a camera everywhere—on film sets and locations, at parties, diners, bars and galleries, on freeways and political marches. Along the way he captured some of the most fascinating moments of his generation with a keen and intuitive eye.

From a selection of photographs compiled by Hopper and gallerist Tony Shafrazi—more than a third of them previously unpublished—this extensive volume distills the essence of Hopper's brilliantly prodigious photographic career.



A limited edition of 1,600 numbered copies in two editions, each signed by Dennis Hopper.

DENNIS HOPPER: PHOTOGRAPHS 1961-1967
Edited by Tony Shafrazi, texts by Dennis Hopper et al.
Hardcover in a clamshell box
XXL format: 33 x 44 cm (13 x 17.3 in.)