What's in a label?

What's in a label?
Well, lots of money, bothways. By that I mean, the owner of the label would have spent lots to do branding and the consumer ends up paying a lot more for it.
Is there a difference between a non-labelled bag and one with a label?
Actually there isn't a difference when we compare functionality. A bag is a bag and will function as one. However, why buy a bag with a label?
My reasons are simply because a branded bag is probably made of a better quality material, which would probably survive the harsh changing weather conditions. I have bought $30 bags which do not last my careless dumping of it in the car, on the ground, anywhere basically. Those bags tend to have a shorter life, after days in the sun, rain and high humidity.
Although I am not extravagant ( I cannot afford to be ), my bags are at least a couple of hundred dollars - and it's not because of vanity - but durability.
Watches - again, guilty - I do not buy $10 watches, because my hands are busy all the time - the watch gets knocked about - and I prefer to know that with each passing year, my watch will still tell me the correct time, to the minute. Again, I do not spend thousands on a watch - in the mid-range of the hundreds would be right.
Clothes - that I'm not guilty of. I buy whatever fits and looks right. After all, all my branded clothes are dry-cleaned and I find that too troublesome for maintenance.
I'm not into what's in fashion or in season. I set the season for myself and as long as it fits me and my washer/dryer, it's enough.
So, I think it's important to understand why we spend on what we spend.
I would call this being an intelligent consumer.