“I need this,” I thought as I gazed dreamily into the mirror. The dress was an unusual silk maxi, unusual because it actually looked good on my 5’2” frame. It had a large pink and green tropical print, tied at the waist, and was backless. “It’s on sale, almost 50% off, that’s such a good deal.” Still not convinced. “This isn’t just any dress. It brings out the color of my eyes. It makes me look thinner.” It’s too much. “I don’t have anything like it.” I sighed as I put my hands over my eyes, half out of frustration, half wishing the price tag would disappear. I imagined that I wasn’t in a room at Neiman’s; I was on a beach in Mexico wearing my new dress. The smell of ocean air began to fill the dressing room until I dropped the bomb on myself. “When would I wear this? I’m in a hurry anyway and I’ve been standing here for 10 minutes staring at one dress. And I’m sure I’ll find something I like even more somewhere else.” With that, I returned the dress to the fitting room clerk and walked away. In the back of my mind I knew the real reason why I left the store empty-handed. The dress cost as much as two months of my cell phone bill. It almost equaled one of my paychecks at my summer job.
The recession has affected every aspect of the fashion industry, from the designers to retailers to consumers. It has changed the way we think about shopping. No longer a guilty pleasure, shopping is just a guilt trip. We often associate economic hardship with lower incomes and even poverty, but rarely with the frivolous nature of the fashion industry. As Anna Wintour said in the September issue of Vogue, “Frivolity must have its foundations.” The recession has magnified the faults in an industry that has lost sight of foundations such as quality, affordability, and good customer relations. The current economic condition forces the fashion world to concentrate on value: practical, wearable clothes with reasonable (or less outrageous) price tags.
Let’s start from the top: luxury brands. Although designer fashion accounts for only a small portion of the apparel industry, it sets the trend for the masses. Some designers might not admit it, but they are also feeling the financial crunch. This is not an excuse for sloppy or lazy designs. John Galiano, head of Dior fashion house, said, “Of course I am aware of the credit crunch, but it is not a creative crunch.” High-end couture is a form of art just like any other. At its core, runway fashion fosters a sense of escapism – to fly out of the world of boring gray suits and into a world of Zac Posen’s hand-painted dresses, the feeling that although you might never wear the outrageous outfits draped across tooth-pick thin models, in some imaginary world, you might. The imaginary world of couture relies on real world money. Christian Lacroix, considered the most successful fashion house created in the 20th century, has suffered most from the economic downturn almost to the point of closing the doors. In efforts to save what is left of his line, Lacroix introduced conservative, more profitable designs for the Fall 2009 season. Women’s Wear Daily reported that “the newly sedate collection looked as haute as ever, yet now utterly suited for life beyond a dream sequence…to the deep-pocketed and curious: Consider this collection one spectacular employment pitch.”
High-end designers prosper not only because of the level of workmanship in their designs but also because of brand appeal. Consumers crave labels. Julie Gilhart, fashion director at Barney’s New York explained that, “Luxury is about something that is special, that has a real authenticity. It isn’t so mass produced.” As designers mark down prices to meet the demands of retailers, their goods become more accessible to the everyday person. Although reduced prices on designer goods seems to be a good thing, it leaves a bad taste in the mouths of many wealthy buyers who see top brands as becoming a commodity, rather than a luxury because of the recession. Brands that sell themselves short to keep their heads above water during the recession may never regain their extravagant appeal.
Frugality and high-living do not usually go together, but now even the most well-to-do shoppers have begun to rethink their designer brand purchases. On Tuesday, September 8, 2009, Neiman Marcus reported a $668 million loss for the year. Saks Fifth Avenue had a 16% drop. These department stores carry bridge to designer price points, which include trendy brands like Juicy Couture to high-end labels like Prada or Chanel.
Dr. Janace Bubonia, head of the TCU Design, Merchandising, and Textiles department, discussed how the economic crunch in the 1980s affected the fashion industry. Pre-recession, labels and loud designs were the trend. Prices skyrocketed throughout the industry, and girls continued to dish out the dough to have Juicy stamped across their shirts. When the stock market crashed, people turned away from labels; therefore, no one wanted to have the brands all over their clothes. Flashy labels still linger, like Christian Audigier’s tattoo-like t-shirt line, Ed Hardy; however, the changes in fashion today have mirrored those in the 80s – more conservative, less in-your-face designs. It seems that as the economy drops, so do the hemlines. One thing is for sure - the fashion industry is changing, possibly for the better.
Retailers are putting pressure on designers to reduce price point and make the clothes more affordable. Instead of buying 120 items from designer’s collections, retailers are picking the 60 best pieces that will sell in stores. This benefits you, the consumer. Although you might not be able to go shopping every weekend, realize that when you do go, you are shopping the best of the best at lower prices.
In the past year, middle-class America brands were hit the hardest by the failing economy. Brands like Gap and JCrew lost the bulk of their shoppers due to unemployment or significant financial strain. Teri Schindler has worked at American Eagle for the past two years and says that she can see the changes. Even though American Eagle, as well as Texas’ economy, is not suffering as much as others, she explains that they rarely meet their projected sales goal and almost never meet last year’s sale figures. There are always sales such as buy one get one half off or 15% off your purchase. Not surprisingly, there has also been more attempted theft. In order to sell merchandise, retailers are not only putting pressure on the designers to lower their prices but also on their sales clerks to practice better customer relations. Although excellent customer service should always be a goal, retailers realize that customers are more likely to make it to the check out counter if you interact with them.
Don’t let me confuse you, consumers are still shopping. Sales have not come to a complete halt. More than anything, the recession changed how shoppers have chosen to spend their money and what they spend it on. For instance, when the economy is down, accessory sales are up. Accessories instantly update your wardrobe. You can wear the same outfit but change the jewelry, purse, shoes, or hairstyle and shake up the look. In the September issue of InStyle there is an article on the top ten ways to polish your look and not one of them says you need to buy a new suit or $700 Louboutins. If you follow simple steps such as always maintaining your manicure and practicing your posture, people will notice you, not just your clothes.
Consumers are concerned now more than ever with investment pieces versus cheap chic. Affordable brands such as Forever 21 and H&M are quick fixes to fill the gaps in your wardrobe. On the downside, these brands carry economically made clothing you might wear only a few times before you discover a hole or a tear. People view clothes as disposable, and to buy disposable clothes is to throw your money away. Consumers are now shopping for classic pieces that might be more expensive, but will last in their wardrobes for seasons to come instead of fading with the changing trends.
The recession has starved designers of retailers and retailers of consumers. It is a cycle that will persist until people slowly start to shop again. In efforts to coax shoppers back into the stores, the editor-in-chief of Vogue, Anna Wintour, hosted Fashion’s Night Out on September 10, 2009. Stores stayed open until 11 P.M. to encourage all shoppers, no invitation needed, to enjoy – rather than dread - a night of shopping. Special events included dance parties, plenty of champagne, and a number of celebrity and designer appearances like the Olsen twins serving drinks at Bergdorf’s and the cast of “Hair” performing at Macy’s in Queens. FNO celebrations were organized in all thirteen of the international Vogue satellites including Milan, Paris and London. Even Northpark Center in Dallas joined the festivities.
In the U.S., New York City is the heartbeat of the fashion industry, and had over 700 retailers participate in the event. New York’s fashion industry employs 175,000 people and generates $10 billion in total wages. Vera Wang simplified the situation at hand, “To put it bluntly, if people don’t shop, people lose their jobs.” FNO was a success, even though the extravagant festivities might have taken away from the shopping. Many shoppers came to the stores for the parties and to see the celebrities rather than to shop. The foremost goal of the night was to put the fun back in shopping.
Proof that the market is not completely suffering: ruelala.com. Rue La La is a direct-to-customer, invitation only website that hosts sales, through boutiques, on designer merchandise yet to be released in stores. These boutiques include everything from Dior sunglasses to Fendi purses to deals at W Hotels. You can buy the latest designer anything at up to 75% off as long as you are sitting at your computer when the clock strikes 11 A.M. eastern. As a testament to the designer zoo that is Rue La La, I joined the site via e-vite from a friend and anticipated the next morning when I would shop my first boutique – Tom Ford sunglasses, 10 A.M. I logged on a bit late, around 10:45, and to my surprise the entire boutique, save two pairs of sunglasses, was SOLD OUT. Are you kidding me? I was 45 minutes late and everything is sold out except two pairs of Willy Wonka sunglasses. As I sighed, I comforted myself with the fact that if the boutique hadn’t been sold out I would have ordered a pair of shiny new sunnies - even with the cool $400 discount. I don’t think my summer savings would have appreciated it. People are shopping, just not in the same way.
Next time you are in the fitting room weighing the pros and cons of a potential purchase, there is one ‘pro’ to keep in mind. The economic hiccup has forced shoppers to exercise good judgment. That new shirt isn’t an impulse buy. It is a staple for your closet, a vital aspect of your being, a piece of art, not to mention a boost to your character. Shopping shouldn’t be stressful; it should make you feel good. You should feel successful when you exchange your hard-earned money for colorful shopping bags filled with the perfect outfit, the heels that make your legs look longer and leaner, or the purse that you saved up to buy. Remember, the people on the other side of the cash register in the fashion industry are working just as hard as everyone else to stay afloat in the recession. Trends may fade over time, the economy might tank, but there will always be the fantasy world of fashion, even if we can only imagine ourselves adorned in the finer things it has to offer.
