In a time when coupons, deals, and incentives reign, what’s a high-end fashion house to do? According to Max Azria, designers need to modify their lines to fit their customers (and he isn’t referencing growing waistlines). “Social climate has an impact on how we design because we design for the lifestyle of a woman. If her lifestyle changes, then our collection has to change to reflect that,” he said before three runway shows this spring.
Many high-end fashion houses have been insulating against a slowing economy by targeting middle income consumers via mainstream channels. Designers such as Vera Wang, Sophie Albou, and Jonathan Saunders have all created collections for stores such as Target and Kohl’s, as part of a concerted effort to boost sales among those who might normally find their styles to be cost-prohibitive. But the question remains: What happens when these types of retailers are also experiencing downturns? Some may say that these designers have nothing to worry about because the weakened American dollar means more foreign monies are being dumped into our economy (for domestic brands, of course). This explanation seems increasingly hollow as our economic slump is such that the U.S. dollar is actually strengthening, as foreign currencies weaken slightly. The good news here is that foreign brands (think Lacoste; Terexov; Temperley London; Diesel; and Akiko Ogawa) become more affordable.
So what does this all mean for fashion? One would first suggest that these companies partake in smarter advertising. Thanks in large part to the internet and social media, traditional advertising may not be the best route during rough times as it tends to be rather costly, and makes dollar tracking particularly difficult. Targeting your customers by way of viral and creative means may actually be the only way to reach them, as newsstand magazine sales declined by 6.3% in the first half of the year according to the Associated Press. It will also be vital, with any form of advertising you may pursue, to emphasize what is important (in the short term) to your consumer – so what if the bag you are selling is expensive? Emphasize the quality, calculate the cost per day of your item, and do something that will ease the mind of your consumer without apologizing for your prices.
In the end, however, it seems likely that designers will find themselves delving into the realm of steep discounts and ever more economical options for their consumers. They might even consider taking advantage of “vintage” or “grunge” styles which already enjoy considerable popularity, while aligning them with their own flavors of fashionable branding. Even suggesting pieces from their collections paired with items from thrift stores might be a business savvy move.
Ultimately, this challenging time could be filled with panic or extreme innovation for fashion houses. It will be interesting to observe the impending deigner free-for-all– a state of affairs which, on the bright side, is sure to move the industry as a whole in an entirely different direction .
