The economic crisis was a big change. After finishing the change, what was left will be the industrial core of the luxury goods which the scale was relatively smaller and the strength was stronger. The latest survey shows that you want to survive the depression, about the brand – you can make use of small profits policy, or insist on superior quality and brand image, rely on the support of loyal customers, tide over the crisis.Top 5 Spring/Summer 2010 abercrombie Trend
Because the price factors were more sensitive during the recession, most brands would weather the storm with reducing their price. 5 Hot abercrombie Trend for July However, there were still a few brands chose the firmly position, refusing to compromise the precarious situation. Hey Buddy!! abercrombie & fitch is Soundest for Grandma in 2009 The representatives are Chanel, Louis Vuitton and Hermès. The price of Chanel famous diamond-type lattice hand bag remain high, and rise in fierce circumstance. Louis Vuitton has been maintaining a steady profitable trend insisting on not discounting, having created a high-quality image, by its own superiority in the Asian market. The high prices of Hermès help it to get rid of a large portion of, while a tradition of limited and customized services helps it save unnecessary upfront investment. Fashion blog Bagsnob.com said: [I believe that true luxury consumers are not subject to the economic crisis, because their income is not likely to be calculated as monthly salary.” The wife of Beckham is a good proof who is crazy to buy Birkin bags.Have a Look at the Reasons of the Popularity of abercrombie and fitch
Conversely, as middle-class consumers turned to look for inexpensive alternatives, such as mid-range brands like Coach Daoshi won their own spring. The “W Score” report, Coach with a score of 92.7 won first place in the competitiveness of the throne. Williams said:”On the basis of high priced products, aiming at consumers’ minds in the recession, Coach launches some products more price friendly. Such a measure is very effective. I think the key of the company’s success is that it follows consumers’ needs closely.”
Of course, even profitable brands can not avoid the impact of economic environment in the same market. When Chanel lay off 200 employees earlier this year, Hermès CEO Patrick Thomas clearly said: [We are faced with crisis, the entire luxury industry can not turn a blind eye to this situation. It is impossible of Hermès to keep out of the affair.” Under this situation, the brand must use every little money. Chanel did not cut off its “Paris-Moscow” advanted handwork series and “Paris-Venice” early spring holiday series to cut down expensees. Moreover, the two films reflect the life of Coco Chanel, “the young Chanel” (Coco avant Chanel) and the “Chanel and Stravinsky” (Coco Chanel & Igor Stravinsky) was also released in 2009. Chanel has always maintained a high media exposure, its acquisition of seven workshops will provide customers with hand implies that the superb quality of their products.
Brands which insist on non-discount policy are not limited to high-end luxury products. Outdoor brand-Timberland still decided to expand its high-end line of Timberland Boot Co .under the grim situation. This brand relies on its years of accumulated loyal customers. Yet Abercrombie & Fitch pesists in non-discount in peril of losing money. According to a report, net loss of this company reached highly to 26.8 million dollars at one time, and sales volumn in May reduced 23.5 percent comparing to same period of last year. “We spent a lot of years to build the brand, and our competitiveness was in quality, style and shopping experience, rather than price. “A&F CEO Mike Jeffries said. GaryWilliams gave a positive assessment about the measures of A & F: “Although their situation became critical, from the perspective of the brand image, they still had the strong competitiveness.”