Sunday, May 9, 2010

The Luxury Industry - It's Just Not the Same

We all knew the recession hit all industries. Fashion was definitely not immune to the economy ... stores and magazines closed, designers pulled themselves out of fashion weeks, etc.

I was especially shocked and saddened to hear that Gen Art, the original promotion organization for emerging artists in fashion design, film and music, has closed.

The economy not only affected how labels valued/approached advertising, budgets and promotion, but it also influenced the global market position of a brand.

Brandz reports that even the most wealthiest consumer spent differently - felt the need to justify purchases:
"At all price levels customers were more discriminating, and not just because they had less money to spend. They sought unusual items, adding the personal and unique to the calculus of value.”
Brandz Top 10 Luxury Brands (They all stuck to the timeless investment, heritage image - Increased sales in Asia also helped quite a lot):

  1. Louis Vuitton
  2. Hermès
  3. Gucci
  4. Chanel
  5. Hennessy
  6. Rolex
  7. Moet & Chandon
  8. Cartier
  9. Fendi
  10. Tiffany & Co.
I did write about this in February '09:  Redefined Economy: Birth of Savvy Luxe.  It's nice to have data to support your theories.