I don’t think it's just the women. It's just as true for men. While women show off their branded goods in their kitty parties, men do that in their little, posh gatherings while sipping their chardonnay.
But, of course, mainstream focuses primarily on women. In India, in particular, this is courtesy of TV serials and outdated movie concepts that portray women as housewives and showpieces to in-law families.
But to answer your question more concretely, yes, there are women who go out of their way to associate themselves with branded goods. Why? It's quite simple. They believe it adds more value to their presence in the social circle. Possessing luxury items position the person much higher in the hierarchical structure. And others look up to them -- if not with respect then at least with contempt.
Remember, we living in a world where posturing is a dominant factor. One of the reasons why social media platforms are so popular; because they facilitate showing off these branded goods to the masses, which adds to the superficiality of self-worth.
When you wear a Rolex or carry a handbag from Gucci, it makes you look rich in your social circle. And rich, today, is talked about. So, posturing on social media, and everywhere else, with such branded goods, get people talking. And when people talk about the person, it makes her/him feel special.
So, it's quite basic - the answer to your question.
Women (and men) associate themselves with branded goods to show their status in public because they believe they would be respected more, which would add to their (low) self-worth and self-esteem.