Thursday, June 11, 2009

We still want luxury.

According to the Fashion Industry’s Key Executives… consumers are spending on “escapist items” instead of ‘boring basics."

“Right now we are championing escapist discreet clothes - ie cashmere loungewear.  Our customers still have film premieres, first dates, cocktail parties and holidays to attend. And because we are a fashion company above all, we celebrate new fashion trends, educate our consumer on why they are exciting, and then offer them to her on a silver tray.” 

Natalie Massenet CEO Net-a-Porter

In fact, the online retailer Net-A-Porter has seen profits increase by 234% from £3million to £10.1million in the past year. The company attributed the dramatic increase to “a well-edited product offering and a strategic approach to buying” as well as the continuation of special projects with designers including Alexander McQueen. Customer growth also significantly increased with an average of 6,500 new customers visiting each month of 2008

According to a recent report by Bain & Company, consumers still want luxury.  They still want to feel they have a special item and escapism is playing a significant role - people don't want to think about the economic climate 24/7.  

“There is a general sense that people will buy fewer items of better quality for the foreseeable future. Customers will demand uniqueness and good value, which is not to say inexpensive” 

Alex Bolen CEO Oscar de la Renta.

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