Brands Bracing for a Slowdown
from Women's Wear Daily
The better bauble bubble could be ready to burst — or at least deflate a little and cause a shakeout of brands.
After years where accessories helped make unknown designers household names and boosted sales in otherwise down times for fashion, industry analysts predict the turbulent U.S. economy is likely to result in a slowdown in the category, from midmarket to super luxury. But industry executives said in the long run the strong will survive and creativity will flourish.
"When you look back to the Seventies, if we do go into a more profound recession, there will be a cultural shift where displaying wealth is not socially acceptable, but that takes time," said Suzanne Hader, principal of 400twin Luxury Brand Consulting. "For that aspirational segment, you're going to see the economic effects taking place. It already started this past Christmas and it will slowly creep up to the middle section of the luxury market this year."
The accessories and fine jewelry categories have been raising eyebrows in the past decade with the inception of "super luxury" and indulgent lines. The bigger-is-better bling diamond jewelry look sported by musicians such as Pharrell Williams and Sean Combs was proliferated by jewelers like Jacob & Co. and Chris Aire.
More recently, the "It" bag phenomenon rose to entirely new heights. Having a popular designer handbag in the $1,000 price range lost its exclusivity among top luxury consumers, making way for a proliferation of exotic skin bags done in alligator, ostrich and snakeskin from big and small brands at price points above $15,000. Some designers such as Chanel and Hermès even added diamonds and gold to the bag equation. Eyewear makers also have begun to include precious metals and gemstones into their designs, as a point of differentiation.
Not quite a volume business, the super luxury strategy was intended to influence the upper middle class to buy items like a designer key fob or a pair of sunglasses. Due to the influx of consumers gravitating toward the category, myriad handbag and jewelry brands emerged onto the scene, while international brands such as the British brand Mulberry and Samsonite made entry in the U.S. with luxe boutiques.
"The mood isn't good for spending," said Cathy Leonhardt, managing director at Peter J. Solomon Co. "All levels of luxury spending are being affected — even the really affluent customer seems to be tightening up."
The better bauble bubble could be ready to burst — or at least deflate a little and cause a shakeout of brands.
After years where accessories helped make unknown designers household names and boosted sales in otherwise down times for fashion, industry analysts predict the turbulent U.S. economy is likely to result in a slowdown in the category, from midmarket to super luxury. But industry executives said in the long run the strong will survive and creativity will flourish.
"When you look back to the Seventies, if we do go into a more profound recession, there will be a cultural shift where displaying wealth is not socially acceptable, but that takes time," said Suzanne Hader, principal of 400twin Luxury Brand Consulting. "For that aspirational segment, you're going to see the economic effects taking place. It already started this past Christmas and it will slowly creep up to the middle section of the luxury market this year."
The accessories and fine jewelry categories have been raising eyebrows in the past decade with the inception of "super luxury" and indulgent lines. The bigger-is-better bling diamond jewelry look sported by musicians such as Pharrell Williams and Sean Combs was proliferated by jewelers like Jacob & Co. and Chris Aire.
More recently, the "It" bag phenomenon rose to entirely new heights. Having a popular designer handbag in the $1,000 price range lost its exclusivity among top luxury consumers, making way for a proliferation of exotic skin bags done in alligator, ostrich and snakeskin from big and small brands at price points above $15,000. Some designers such as Chanel and Hermès even added diamonds and gold to the bag equation. Eyewear makers also have begun to include precious metals and gemstones into their designs, as a point of differentiation.
Not quite a volume business, the super luxury strategy was intended to influence the upper middle class to buy items like a designer key fob or a pair of sunglasses. Due to the influx of consumers gravitating toward the category, myriad handbag and jewelry brands emerged onto the scene, while international brands such as the British brand Mulberry and Samsonite made entry in the U.S. with luxe boutiques.
"The mood isn't good for spending," said Cathy Leonhardt, managing director at Peter J. Solomon Co. "All levels of luxury spending are being affected — even the really affluent customer seems to be tightening up."
Labels: designer fashion brands, luxury handbags and accessories
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