So, news just in, the global market for luxury goods is heading for its weakest year since 2009. Sales will rise by as little as 1 percent to 253 billion euros ($280 billion) in 2015, according to Bain & Co., which in May forecast growth of 2 percent to 4 percent. The projection, on a basis that excludes currency swings, would be the weakest gain since sales fell 11 percent in the year after Lehman Brothers’ collapse.
Left - All the gear and no idea - The 'luxury' customer, Footballer Balotelli
What does this really mean? Is it the wobbles in China or are people becoming bored of ‘luxury’? Whatever 'luxury' means today. The type of products these companies have been producing plus the never ending escalation in prices has taken its customer for granted. The higher the price, the shorter the shelf life, it seems, for product which just continues to get more and more expensive. Some of the entry prices for these brands are frankly ridiculous.
Brands think they can make more money by producing more product, but in fact it just puts people off. (See ChicGeek Comment - Exclusive Not Excluding)
It has also produced a customer, which while a high-spender, isn’t necessarily the look others aspire to. In other words fashion victims.
So, where is style now? The term ‘style’ is as subjective and has as many incarnations as people. But it does shift. While luxury brands have been busy peddling their wares to the international tourist, the style set has been discovering the high-street: the low-cost disposable side of fashion.
It is simplistic, but the only way I can describe style, now, is the best item from the worst shop.
It’s about being clever: the opposite to obvious. Labels and logos have become less important and it’s about how the individual looks in the clothes. The silly prices has just speeded up this process and because the designers aren’t coming up with anything really new, people are happy to get their things from lower priced retailers.
Look at it as the stylish show off by buying and finding great things in less obvious places. The high-street and lower priced retailers have mastered the fit and who really cares that much about the quality of the material when it will be gone before that becomes an issue.
I predict these luxury retailers to start producing lower entry priced product and become less reliant on these few, higher-spending shoppers. The Russians have disappeared, the Chinese aren’t being as frivolous and those oil rich nations in Africa aren’t making as much from every barrel. It's time for luxury brands to get real.