Who is buying luxury goods in recession
Dissimilar with earthquake, the financial crisis is not a disaster which can't be forecasted with difficulty, also it does not arrive in a night. The mortgage crisis in US, started a year ago,is much worsened at the present. A friend of mine who works in an airline company said that, except the Middle East and China, nowhere has spare money to lend.
Sounds truly "crisis". But have a look at my friends in middle class, no matter whether they are engaging in financial circles or not, still have their jobs, and keep their well-off lives. Last Saturday, one of my girlfriends in Boston went to Neiman Marcus, and she told me when she came back that, it was as crowded as Wal-Mart, filled with girls noisily and panicly purchasing discounted goods. Mmm, this weekend, I also plan to join this army.
Looks like, the majority's life has not come under substantive influence, but gain benefit from the discounts on the contrary. But, the financial crisis is a pressure without doubt, looks like the block dark cloud to gather over the head, very quick has not dispersed, and also does not have falls rains. How can everybody adjust own consumer behavior under "the dark cloud", is one topic many people is very interested in. Should stick to one's own way of doing things, buy what should buy? Or lower the class, give up the Burberry windproof coat and turn to buy the Gap windproof coat? Or lower the quantity, from five beloved Hermes silk handkerchiefs to three? Or take advantage of this golden opportunity, and crazily buy in alligator skin and python skin handbags? I believe when the financial crisis is past, there will be many interesting statistical data, I'll wait for it.
Since the end of 80's, luxury goods industry has rapid development, and is now facing most stern challenges for 20 year. However, for the luxury brands, the most challenging issue is to forecast and explain the consumers, make the correct decision. The decision is right, then the brand will grow stronger; if the decision is wrong, the brand will suffer from loss and gets less prominent.
In front of the challenges, each luxury brand has their own strategy. To sum up, their countermeasures may divide into four kinds (take handbag brands for example). The first kind is gorgeously motionless, copes with shifting events by sticking to a fundamental principle, in the same old way keep expensive, does not offer discounts, for instance Louis Vuitton and Chanel. The second kind is politeness and sympathy, the price has not changed, but the design has shown restraint, more simplicity, less exaggeration (the guiding ideology being that, even if you have a lot of money to spend, you must consider others' feeling, do not show off too over), for instance Prada, Dior and Chloe. The third kind is the slight adjustment, added some non-leather design handbags quietly, offer consumers more somewhat "rational choices", for instance Fendi, Marc Jacobs and Tod' s. The fourth kind is in disarray, hurries to promote "the thrifty version", shows "makes a great effort to save" determination, for instance YSL.
First talk about YSL, because their ad campaign was really everywhere. You can see YSL yelling that 1000 US dollars can buy the YSL handbag, with logo, leather! on each big fashion magazine. In fact the design of these two new style patent leather handbags is succinct, not slightly ugly, does not have an unnecessary decoration; but look like the beautiful woman who puts on make-up all along but suddenly washes away the make-up, which may somehow shocks the others, people may think it does not look like YSL. But several months ago, Kate Moss carried luxurious feeling full alligator grain chamois skin Muse in front of the mirror looking about herself. Brand image change so quick, is dealing with the emergency intelligently, or outsmarts oneself?
Then the slight adjustment type. I thought this kind of brand is quite intelligent, maintains the brand completely in the design and style, but increases the non-leather design. The non-leather handbag is originally cheaper than the leather handbag, therefore is relatively inexpensive and cannot affect the brand image.
Politeness sympathy brand is quite rich in human nature, not blatant or overly aggressive in appearance. Dior's several handbags this season, except for the hanging logo charms with superiority feeling slightly, may be called simple unadorned. The Chloe's great lock and ultra big zipper have been displaced by practical usable design.
The gorgeously motionless really is gorgeous and I have nothing to say. The brand strength is there, let alone one financial crisis, ten financial crises won't affect their brands.(edit by ReplicaEstore.com)
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