“It is a daily push and fight to stay alive,” Posen said in a May 26 telephone interview. “I don’t think it about dumbing down clothing, but making more intelligent, more focused and more wearable clothes on a fast delivery time at more accessible prices.”
EEL-SKIN JACKET
Demand will switch to goods that are true luxury, in terms of quality and craftsmanship, from those that are merely status symbols, according to Fink, the fashion consultant.
Fink identified examples of luxury value at Neiman Marcus Group’s Bergdorf Goodman store in New York. Among other items, he pointed to a US$1,900 Oscar de La Renta black lurex tweed motorcycle jacket hanging next to a US$3,590 red eel skin version.
At New York-based Saks, general merchandising managers traveled to Europe for 10 days in recent weeks to meet “with brand after brand after brand with ideas of how to exploit each of their businesses within a new pricing model,” President Ron Frasch said on a May 19 conference call.
Coach, also based in New York, has begun to rebalance its collections so that at least 50 percent of its handbag choices will fall into the US$200 to US$300 range, compared with 30 percent previously, Chief Executive Officer Lew Frankfort said on an April 21 conference call. Sharper pricing has pressured margins, Chief Financial Officer Michael Devine said.
Thakoon’s second-line “Addition” dresses sell for US$600 to US$800, compared with US$900 to US$1,200 for the main collection. Thakoon doesn’t want to compromise on materials, and can ultimately make up the lost profit margin with volume, said Maria Tomei Borromeo, Thakoon’s chief executive officer.
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