Who Is Buying Luxury Goods In Recession


Published on

Who is buying luxury goods in recession? Survey found a merging group of people is purchasing designer handbags instead of stocks as a new type of invesment! Does it make sense? Check this article out RIGHT AWAY!

Published in: Lifestyle
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Who Is Buying Luxury Goods In Recession

  1. 1. Who’s buying luxury goods in recession?Dissimilar with earthquake, the financial crisis is not a disaster whichcan’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 thepresent. 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 havetheir jobs, and keep their well-off lives. Last Saturday, one of mygirlfriends in Boston went to Neiman Marcus, and she told me when shecame back that, it was as crowded as Wal-Mart, filled with girls noisilyand panicly purchasing discounted goods. Mmm, this weekend, I alsoplan to join this army. Looks like, the majoritys life has not come under substantive influence,but gain benefit from the discounts on the contrary. But, the financialcrisis is a pressure without doubt, looks like the block dark cloud togather over the head, very quick has not dispersed, and also does nothave 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 ones own way of doing things, buy what should buy?Or lower the class, give up the Burberry windproof coat and turn to buythe Gap windproof coat? Or lower the quantity, from five belovedHermes silk handkerchiefs to three? Or take advantage of this goldenopportunity, and crazily buy in alligator skin and python skin handbags?I believe when the financial crisis is past, there will be many interestingstatistical data, I’ll wait for it. Since the end of 80s, luxury goods industry has rapid development,and is now facing most stern challenges for 20 year. However, for theluxury brands, the most challenging issue, is toforecast and explain theconsumers, make the correct decision. The decision is right, then thebrand will grow stronger; if the decision is wrong, the brand will sufferfrom 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 (takehandbag brands for example). The first kind is gorgeously motionless,copes with shifting events by sticking to a fundamental principle, in thesame old way keep expensive, does not offer discounts, for instance LouisVuitton and Chanel. The second kind is politeness and sympathy, theprice has not changed, but the design has shown restraint, moresimplicity, less exaggeration (the guiding ideology being that, even if youhave a lot of money to spend, you must consider others’ feeling, do
  2. 2. not show off too over), for instance Prada, Dior and Chloe. The thirdkind is the slight adjustment, added some non-leather design handbagsquietly, offer consumers more somewhat “rational choices”, for instanceFendi, Marc Jacobs and Tod s. The fourth kind is in disarray, hurries topromote “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 ofthese two new style patent leather handbags is succinct, not slightly ugly,does not have an unnecessary decoration; but look like the beautifulwoman who puts on make-up all along but suddenly washes away themake-up, which may somehow shocks the others, people may think itdoes not look like YSL. But several months ago, Kate Moss carriedluxurious feeling full alligator grain chamois skin Muse in front of themirror looking about herself. Brand image change so quick, is dealingwith the emergency intelligently, or outsmarts oneself? Then the slight adjustment type. I thought this kind of brand is quiteintelligent, maintains the brand completely in the design and style, butincreases the non-leather design. The non-leather handbag is originallycheaper than the leather handbag, therefore is relatively inexpensive andcannot affect the brand image. Politeness sympathy brand is quite rich in human nature, not blatantor overly aggressive in appearance. Dior’s several handbags this season,except for the hanging logo charms with superiority feeling slightly, maybe called simple unadorned. The Chloe’s great lock and ultra big zipperhave 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 financialcrises won’t affect their brands.(edit by ReplicaEstore.com)