By: Jenn Ortiz, guest blogger
- Christian Lacroix is bankrupt.
- Oilily filed for Chapter 11.
- Cavalli is selling.
- Neiman Marcus and Bergdof sharing executives, and Saks also had a shake-up, an effort to freshen up it’s board and hold members accountable, in hopes of helping the struggling retailer out of it’s slump.
- Burberry reported an entire year of losses.
- E-luxury is no longer a retailer.
- Versace, Aquascutum, and Luella are all shook up.
- Vogue is claiming save fashion.
- Fashion houses are burning!
“Luxury is dead.”
Huh?
Yes, the luxury market is suffering tremendously. However, it is nowhere near dead. It’s impossible to kill luxury. There will always be some product that only a small group can have that makes it desirable to everyone else. In that lies the key to survival for a luxury brand. No, the luxury industry is not dying, it is purging. This is simply an issue of overreaching. The fact is luxury is not for everyone, and the market is forcing luxury designers and retailers to go back to basics.
Retailers and designers have had it too easy for quite some time.
With so much money floating around and the newly rich willing to show off, it was simple and too tempting for a brand to reach out and take advantage of these customers in boom times. It was a time for growth and bringing “luxury” to the people. A few years ago, Burberry learned that this turned off its true luxury consumers, so out came Burberry Prosum, the high-end of Burberry.
Resort collections have growing importance and popularity in recent years.
The reason?
It’s been said that the lesser press coverage of resort collections allows the pieces to be less obvious to the average non-fashionista. Now in harder times, luxury brands are scaling back. Those customers they had focused on are now gone, and for the brands that were not mindful of their original consumers, the true luxury consumer is gone, too.
So how is a luxury brand to survive?
Take note from a successful and timeless luxury brand: Hermes.
Hermes is now breeding crocodiles in order to supply the demand that it has for its luxury bags (think in terms of the Birkin.) Bags that cost $50,000 each. Hermes never did a diffusion line. While famous for their scarves and leather bags, Hermes has offered a small variety of jewelry and other accessories. Hermes knows its strength. The house has not overreached, nor does it plan to. It seems that Hermes is putting any expansion plans on hold because it expects the luxury market to continue to sputter for another year or two.
Wise.
Luxury is in the details! Never skimp on materials or service. Consumers need to trust that what they are buying is reliable and top quality. Luxury consumers want to be pampered. They want their monies worth. These people didn’t get rich by making stupid choices. Above all, the consumer needs to have a relationship with the brand!
Don’t be too available. It should be an honor to own one of your products. No matter how discreet and “humble” every luxury consumer wants to own an item that is desired by others. You are the prize. You are the goal at the end of the seduction!
But, do have a diffusion line if you must. Draw a clear enough line between your low, mid, and high end sub-brands if you decide to expand into a lower market. Keep each line small and targeted.
Your craft is your art. Remember the basics. Every good artists knows this. Indeed, it was noted by the NYT that most recent shows focused on well-made good fashion and less on the show itself. When the hype is gone, you still need to sell a product. Better make it a good one.
Extra:
More on true luxury.
Teetering luxury market.
Recession and Luxury.
More on retailing in a recession.
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Jenn Ortiz is a graduate of the University of Florida with degrees in History and Latin American Studies with hopes to pursue a PhD in Child Development. She believes there is beauty in everything around us; from the inside out, outside in. She currently runs {Bits of Beauty}, a place you just feel good about.
Copyright © 2009 Sasha H. Muradali. All Rights Reserved.
