So, we're in a recession. How do luxury retailers ride out bad economic times? Like the Cylons, they have a plan.
But even the rarified worlds of fashion and luxury are linked to the broader economy—and marketing lavish, often ephemeral goods is brutally challenging in the best of times. With banks tanking, bonuses vanishing, and retailer bankruptcies on the rise, peddling luxury in 2008 is no enviable task.
Here's a quick survival guide for how the American fashion industry will ride out these distinctly un-fabulous times.
Accessories will be everywhere.
Like jewelry, for example.
In a paper detailing predictions for the 2008 luxury market, consumer-trends analyst Pam Danziger of Unity Marketing deemed jewelry purchases less susceptible to market fluctuations. "Jewelry is unique among luxury goods because it offers the customer some perceived inherent value," she said.
Retailers and editors are keeping their fingers crossed that Danziger is right.
"We've shot more and more with jewelry," says Sally Singer, fashion news and features director at Vogue. "Jewelry can upgrade any outfit, and jewelry purchase values don't change as quickly as clothes, especially gold."
Other accessories-especially shoes and handbags-will continue to be big business for designers and retailers. Consumers might be skittish about investing in expensive, trendy apparel but will still give themselves a smaller designer fix with these products.
And designers-many of whom already make more money from accessories than ready-to-wear-will be looking for ways to further expand these lower-price-point lines of their brands.
Other strategies include stocking more American designers (European designers are too expensive because of the falling dollar), having more sales to lure shoppers in the door, offering "chic downgrades" such as designer items from Target mixed with upscale items, and trumpeting a "return to classics" with separates instead of dresses and super-expensive "It" bags.
