Those who are established luxury buyers of the worlds best and those who touch the best every once in a while with a purchase of the luxury item they really crave. We have just come upon a cycle where the later will be smaller and consequently the businesses that cater to these customers will be pressured to adjust. How do designers and fashion retailers get through this time of change? If you have been living on the edge, cutting too many corners and not taking care of your customers you will most likely not be here next year. That is called extinction. The best will not change the core of what they do but will be better at it. Luxury will go back to those who can afford it and the rest of the world lives a less affluent lifestyle with fewer purchases of luxury items. You who have the means be prepared for even better value as the people who bring you the best work harder to continue to keep their place in the world of fashion luxury
The recessionistas’ have affected all areas of fashion not that they have the real power to do so but that the psychology of the purchase has changed. How are those in fashion dealing with the change and the pressure. Well there are two ways that jump out as obvious answers lower prices or more exclusivity. Truth is that the very best in the business will not let their brand be tarnished by the circumstances real or imagined that they find themselves faced with because of the economy’s cyclic patterns. Will Mercedes make a cheaper sedan? Should They? Would you buy it? How long before they would be known for the lesser product? There are two distinct customers that are needed to create growth though it may be smaller.