'Payless' created a fake luxury brand to trick influencers. Spoiler alert: everyone fell for it

In 2018, Payless ShoeSource orchestrated a bold marketing experiment to challenge perceptions about brand value and consumer behavior. To shift how consumers view the budget-friendly chain, Payless created an entirely fake luxury brand called 'Palessi.' The company, in partnership with DCX Growth Accelerator, set up a high-end storefront inside a former Giorgio Armani store in Santa Monica. Inside, golden mannequins, angel statues, sleek lighting, and glass shelves displayed Payless shoes disguised as upscale fashion pieces. Everything about the store, from its Italian-sounding name to the fake designer "Bruno Palessi," was crafted to sell one idea: this is luxury.

The setup was elaborate — the team brought in a professional interior designer, gold-painted statues of lions and giraffes, and sales staff to complete the illusion. They even launched an Instagram account and filled it with curated content to create online buzz. Sixty fashion influencers and shoppers were invited to the grand opening, believing they were attending an exclusive launch of a high-end brand. They were told they were attending a market research event and would be paid between $100 and $250. Once inside, they browsed sneakers, heels, and boots with price tags that soared as high as $1,800. One pair of Payless sneakers, usually sold for $34.99, was marked up to $645, and yes — people bought them.

One shopper described a stiletto heel as "just stunning, elegant, sophisticated," while another admired a pair of sneakers, stating, "I can tell it was made with high-quality material." After purchases were made, Payless revealed the true origin of the shoes, refunding the money and allowing customers to keep their selections. The prank, which is part of a multimillion-dollar campaign, was designed to challenge assumptions and bring Payless back into the cultural conversation. The company’s chief marketing officer, Sarah Couch, said the campaign aimed to prove that stylish footwear doesn't need to carry a luxury price tag, which, as surprising as it may be, is what people pay for.

A study published in Frontiers in Psychology found that a product's perceived value positively impacts brand resonance and customer affective commitment, suggesting that consumers' emotional connections to a brand largely drive their buying choices. Doug Cameron, chief creative officer at DCX, explained how they created the brand name. "I looked up a list of Italian family names on Wikipedia, saw Alessi, and added a 'P.' We created a website too because we figured people would Google it," he said, as per CBS News. Cat Chang, a Los Angeles-based diamond designer who attended the event, said, "We wouldn’t have ever known. We were really convinced. They had us fooled, like completely." According to Philip Graves, a consumer behavior consultant, the stunt proves how much branding drives perceived value.

"The way that we evaluate things is through associations. Slap a fancy-sounding European label on $30 shoes, and you have an illusion of status," he said, reported the Washington Post. Couch also emphasized the brand’s focus on digital growth, saying, The shopping experience on payless.com is different from the store. It’s the fastest-growing piece of the business." The campaign sparked discussions online, with users sharing their thoughts. @LiveEasy wrote, "Why not keep the store open indefinitely if they're really selling at over 10x the price?" To which, Payless responded, mentioning how they wanted to cement the idea of accessible luxury that didn't alienate any income group. @Draydaze commented, "Makes you question if they are real fashionistas if you can't tell the difference between real leather and fake." @Phlegethon noted, "Payless refunded their money but can never refund the 'fashion experts' dignity."