inspiring social & environmental excellence in high-end brands
Luxury and Recession
Bain and Co just released their annual review of the industry, suggesting a 7 per cent fall in sales in 2009. They suggest that will be mainly due to "accessible" lux brands like Ralph Lauren, rather than "aspirational" lux brands like Gucci or "absolute" lux brands like Hermes, which they think will continue to do well. Business Week just reported Portero is experiencing a massive upswing of people seeking to sell off their branded items. And today IHT reports on marketing professionals predicting a shift away from conspicuous consumption. "In grim times it becomes distasteful or simply unfashionable to spend money on bling or what you might call conspicuous consumption," said Rory Sutherland, vice-chairman at advertising agency Ogilvy... Andy Lear, head of planning at the London office of French advertising agency Publicis said the repercussions of the financial crisis -- front-page news worldwide for weeks -- were simply accelerating a trend that already existed. "People had already been looking for something more meaningful than just chasing cash and buying things that look flashy," he said. IHT note "Certainly, some in the financial services industry who had previously enjoyed a luxury lifestyle say they are starting to question the relentless pursuit of material gain."
The following is my foreword in tomorrows ecochicfashions.com fashion show in Hong Kong tomorrow. What do you think?
Newspapers and politicians tell us "don't panic" and "carry on
shopping". That will fuel the economy and stave off economic disaster,
we are told. It is the same story in cities worldwide: We have become
the 'shop or drop ' society.
What happened to buying things simply because we needed them, or
wanted to give them to someone dear? How did we reach a point where
the quantity of shopping mattered more than its quality?
But with the financial crisis, those values are already shifting.
Some in the fashion world worry about a fall-off in sales. But the
real challenge to the industry is the falling appeal of consumption
as an end in itself, as people reconsider their view of wealth and
success.
Research shows environmental awareness sweeping Asia. As connections
are made between how we consume and how that affects the environment,
the commercial implications are huge. That presents opportunity for
companies who offer something deeper.
Fashion need not follow - it can lead. Innovative action in the
fashion industry such as EcoChic can demonstrate how style and
environmental consciousness may blend naturally.
It is time for responsible brands to speak out. It is time to see this
crisis of shallow values as an opportunity for deeper ones. It is our
time.
The following is my foreword in tomorrows ecochicfashions.com fashion show in Hong Kong tomorrow. What do you think?
Newspapers and politicians tell us "don't panic" and "carry on
shopping". That will fuel the economy and stave off economic disaster,
we are told. It is the same story in cities worldwide: We have become
the 'shop or drop ' society.
What happened to buying things simply because we needed them, or
wanted to give them to someone dear? How did we reach a point where
the quantity of shopping mattered more than its quality?
But with the financial crisis, those values are already shifting.
Some in the fashion world worry about a fall-off in sales. But the
real challenge to the industry is the falling appeal of consumption
as an end in itself, as people reconsider their view of wealth and
success.
Research shows environmental awareness sweeping Asia. As connections
are made between how we consume and how that affects the environment,
the commercial implications are huge. That presents opportunity for
companies who offer something deeper.
Fashion need not follow - it can lead. Innovative action in the
fashion industry such as EcoChic can demonstrate how style and
environmental consciousness may blend naturally.
It is time for responsible brands to speak out. It is time to see this
crisis of shallow values as an opportunity for deeper ones. It is our
time.
Views: 7
Replies to This Discussion
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Permalink Reply by Jem Bendell on -
I uploaded my article on this topic published in Singapores main tabloid:
http://authenticluxury.ning.com/profiles/blogs/recession-chic-can-g...
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Permalink Reply by Lukardis von Studnitz on -
I believe that more and more people will be interested in ethical consumerism. Shopping and doing good in the sense of luxury and fair trade. Besides fair trade hand-made and traditional skills will also become important - lace has become quite prevalent in recent fashion collections.
Anyone interested I will coming from Cologne to London on November 24 to host a special Luxury FairCraft event at the antique store of Alexander von Moltke in Pimlico 46 Bourne Street, London SW1W 8JD from 5 - 10 pm.
Let me know via email whether you might be able to come studnitz@faircraft.net. I would love to meet up with anyone from the Authentic Luxury Network in London. - Attachments:
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Luxury_FairCraft_invitation.pdf, 152 KB
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Permalink Reply by Deidre on -
I think the recession goes in two ways, on the one hand people will buy less needless stuff and will consider their purchases more carefully which is great, on the other hand, some, even those in the luxury market, may start to put price above all other concerns which can be bad for those marketing sustainable and eco products which cost more but provide a deeper value.
Newsweek had an interesting piece on "luxury shame" which posits that even those who can spend are not spending, to show solidarity with employees and others who have less and because it seems unseemly in this day and age. It seems to be to be a sharp pendulum swing, an over-correction from the days when flaunting was fashion.
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Permalink Reply by Diana on -
Hey,
I will be writing my master thesis about
"the effects of the economic recession on luxury fashion consumption and how affected companies deal with these"
and I have also come across the articles mentioned by you guys, which I find very interesting. I am located in London and I will need to do some interviews with experts, who know about
- recession and luxury fashion consumption
- recession and luxury brand loyalty
and experts in the field, meaning marketing/sales managers for accessible brands like Ralph Lauren, Tommy Hilfiger, (or any other affected company) who can share some insight about how they were affected by the recession and how they changed their strategies according to that.
If there is anyone that would be interested in sharing their knowledge as an expert or providing me with valuable contacts, that would be great.
I could provide my final dissertation report to you, if you are interested in this topic or maybe publish it here on the platform, depending on the interest.
Thanks guys!
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Permalink Reply by Jem Bendell on
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Can luxury be the way to rebuild manufacturing, post-crisis? This example of UK watch industry suggests this possibility... http://www.bbc.co.uk/programmes/b00sdcfh#synopsis
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