Who are these people?

First of all, this isn't meant as a shot at anyone, merely an observation. 

Last night I was reading a magazine and started thinking about all the clothing brands out there where every piece is over $100.  Almost every outfit shown featured something in the $300 range and I hadn't even heard of the brands. These aren't the Gucci and Donna Karan's that you've heard of, or even J.Crew and their $60 tank tops, but small labels selling $269 skirts.  Who buys those clothes? 

Clearly they have customers or they wouldn't be around.  If you go shopping in Dallas, it would appear that every other person drops $130 on a shirt or there wouldn't be so many places to buy them.  InStyle and Lucky act as though we should all jump at the chance to buy a $90 black skirt since it is $400 cheaper than the designer version, but it's still expensive to me.  Perhaps I'm in some low class demographic and don't even know it? 

Maybe when I'm super successful and have money to burn I'll drop $1000 on an outfit, but I don't think I'll ever go "$68 is a steal for this thin cotton tank" when I know what I can get for $19.   Clearly I'm far too practical for my own good.