With the credit crunch in full swing, retailers all across
the globe are slashing prices and shuttering their shops. As the tsunami of financial
crisis; which initially sprang up in the US started swallowing the economies of
other countries gradually, every single day brings more dismal news on the
economic front. This applies for luxury clothing sector as well. Conventional
knowledge states that affluent market will remain unaffected by the economic
ups and downs that normally take the middle class consumer as a prey. But the
current market situation being more diverse and stratified, has proved this to
be a wrong notion. This means a more challenging period for the luxury brands. The
aspirational upper, and upper middle class customers who were the main reasons
for the double digit growth of designer wears are now shifting their focus
towards a less expensive way of shopping.
Luxury Recession - Inexpensive designer wears:
Until the recent past, designer expensive outfits by top
fashion designers were in vogue. Stylish, chic clothing and accessories were
seen on store racks until the advent of recession. Presently, many fast fashion
retailers expect the fashion designers to create collections that are
inexpensive. They urge the designers to go for patterns that will satisfy the
consumers who, at present want to keep their clothing budget under control.
Wal-Mart has caught on to the designer collaborations. It has
introduced a new line of clothing designed by the renowned fashion designer Norma
Kamali featuring jersey wrap apparels for $20. JCPenney has introduced a new
collection of affordable and exclusive designer brands from its portfolio of
authentic designers. Retail giants like H&M and Target are also gearing up
to jump into competition. H&M, defying tough times has proposed to launch
its latest high profile design collaboration with cutting edge fashion.
Normally, the company showcases it collections only during November. But now,
it is rolling out its collections of designer Matthew Williamson during the
spring. Target has also introduced a line of designer clothing with low price
tags. Fashion accessories like totes, handbags and jewellery will also be
complementing their clothing line.
Does inexpensive clothing make a class?
Now, what about the quality, style and construction? Do the
consumers have to compromise on these aspects? While some companies attempt to
do a good job staying true to the designer's vision, few others using materials
which; though not up to the standards; help to keep the costs down. Efforts are
made to achieve outfits with high end quality, without making much sacrifice. With
materials that will make up the consumers budget, retailers try their level
best to bring out outfits that give an 'expensive look'. It is a crystal clear
fact that, though inexpensive designer clothing will not withstand the market
as long as its original counterparts, it will definitely be available in the
mass market.
Inexpensive designer wears are now flooding the market
trying to 'cut corners', elevating fashion in merchandise assortment. Luxury
retailers need to stay focused on their customers so as to get a feel of their
preferences and inevitable shifts in the luxury market. Retailers who are
willing to make adjustments to go with the conservative luxury mindset of the
consumer will reap gains.
References:
1) http://online.wsj.com
2) http://www.papermag.co
3) http://www.4hoteliers.com
4) http://consumerist.com
