If this is a recession, why is everyone still buying labels?

I was walking to work the other day and ended up behind a 20-something young woman who was also, presumably, on her way to work as we were near big office buildings in downtown Chicago.

She had on a black skirt and purple tee-shirt with flats by Tory Burch. How did I know who made her shoes?

They had the distinctive Tory Burch gold insignia on the front of the shoe (and yes, I DO read Vogue and other fashion magazines in addition to my Fortune and Money.)

In fact, they were these very shoes:

Price on the website? $225 a pair.

But that wasn’t all. She was carrying a Gucci handbag. It was one of the older bags and I can’t find a current picture but I would place it at around $550 or so.

To top it off, she was wearing Chanel sunglasses. How do I know they were Chanel? Because I recognized their logo on the side of the glasses. Didn’t you know that even sunglasses have labels now? Yes- on the stem that goes to the ear.

Don’t ask how I knew it was Chanel.

I would estimate the cost around $350 to $400 (based upon looking at various designer sunglasses websites).

Labels, labels, labels.

Who said we’re in a recession? And what happens if we really go into one?

Will people really give up their $225 a pair leather flats with a gold buckle on the top?

Will consumers downsize to, gasp, $25 sunglasses from Old Navy or Target?

What will happen to the empires of these fashion labels who make millions off of people simply wanting to wear two “C”s intertwined on a piece of plastic?

I also could only think- what if this woman had invested all of the money she spent on these labels into the stock market? How truly rich would she become?

Instead, she merely looked rich (in some people’s eyes.) Labels mean you have money- right?

When, in reality, it means you don’t.

Labels are as old as time.

Heck, look at Chanel herself. She built a powerful brand off of her name decades ago. And the “Kelly” bag that Grace Kelly used after she became Princess Grace? Hermes made that. It remains a classic.

The drive for labels doesn’t appear to be slowing. Nearly every celebrity has their own “brand” whether it is clothing, swimsuits, purfume, shoes (Jessica Simpson!), sunglasses, or jewelry. The marketing powers that be want you to buy the label.

Will consumers keep spending for that extra cache?

Stay tuned.