How Stone Island uses branding to add value and charge £165 for a T-shirt

A few months ago, I wrote a blog questioning whether a £2.50 Primark T-shirt could ever truly be ethical. This week, I found myself holding a £165 Stone Island T-shirt and asking a completely different business question.

How can two T-shirts that are fairly similar in nature have a £162.50 difference in price?

Of course, there may be differences in quality, materials, durability and fit. The Stone Island T-shirt may feel more premium, last longer and involve higher production costs. However, it is difficult to argue that these differences alone explain a price that is 6,500 per cent higher than the Primark alternative.

This is where branding becomes extremely powerful.

What is added value?

In business, added value is the difference between the selling price of a product and the cost of producing it. Businesses try to increase added value because it allows them to charge higher prices and make more profit.

Stone Island is a great example of this. The business is able to charge far more than the likely production cost of the T-shirt because customers believe the brand itself adds value.

One of the most effective ways businesses create added value is through branding.

Strong brands create:

• recognition

• loyalty

• status

• emotional attachment

• perceived quality

This means consumers are often willing to pay far more for a product, even if the basic function of the product is very similar. After all, both T-shirts still do the same core job. They are both designed to be worn.

The power of branding

For many young consumers, brands such as Stone Island have become about far more than clothing. The logo itself carries identity, status and social value.

In some circles, simply “getting the badge in” changes how the product, and in some cases the person wearing it, is viewed. This is a brilliant example of how branding can influence consumer behaviour.

Consumers may associate Stone Island with:

• exclusivity

• status

• fashion culture

• premium quality

• belonging to a certain image or group

As a result, the logo itself becomes valuable.

In many ways, consumers are not simply buying the T-shirt. They are buying what the brand represents.

This is not unique to Stone Island either. Businesses across many industries try to create this same emotional connection with consumers. Apple, Nike and Rolex all rely heavily on branding to justify premium prices.

Why Stone Island became culturally valuable

Part of Stone Island’s success comes from the culture surrounding the brand. Over time, the brand became closely linked to football casual culture, music and social identity in the UK. This helped turn the Stone Island badge into something recognisable and desirable for many young consumers.

Social media has strengthened this even further. When influencers, footballers or musicians wear certain brands, the products often become more appealing to younger audiences.

This creates a cycle where:

• the brand gains visibility

• more people want the product

• the product feels more exclusive

• the perceived value increases

This is a major reason why some consumers are willing to pay such high prices.

Primark vs Stone Island: two different ways of creating value

Primark and Stone Island create value in completely different ways.

Primark focuses on affordability, accessibility and value for money. Its strategy relies on selling large volumes of products at low prices to mass market consumers.

Stone Island takes almost the opposite approach. The business uses branding, exclusivity and image to justify premium prices and target consumers who value status and identity.

Neither strategy is necessarily “better”. They simply appeal to different consumers.

This is what makes branding such a powerful business tool. Two products can perform a very similar function, yet consumers may value them completely differently because of what the brand represents.

If we are honest, most of us probably pay more for certain products because of how they make us feel, not simply because of what they do.

Questions for business students to consider:

1. Identify and explain two ways Stone Island creates added value for its customers.

2. How do Primark and Stone Island target different types of consumers?

Extension: To what extent do you agree with the statement below and why?

“Consumers are not paying for the T-shirt itself. They are paying for the image and status attached to the brand.”