Fashionista - Fashion Designers, Models, Shopping, Style - As the Middle Class Dissolves, Do Mid-Priced Brands Go, Too?

As the Middle Class Dissolves, Do Mid-Priced Brands Go, Too?

Nov 09, 2007 @ 4:16pm

Over the past few years, it seems like "luxury" has become the new standard. We remember a time when the $200 jeans we now own would have made us think there was a typo on the price tag, and the $800 boots we’re considering buying would have seemed like a practical joke.

And while there have been a lot of complaints about oversaturation in the market ($275 headband, anyone?) it looks like what’s even considered luxury might change once again.

The luxury market is splitting.

Amid recent reports of department store slowdowns and Van Gogh paintings failing to sell at auction, there is talk of the two different types of luxury- “affordable luxury” versus “genuine luxury-” experiencing two different types of sales.

Stores selling mostly “affordable luxury,” like Nordstrom and Macy’s, have seen a steep decline, while Saks and Neiman Marcus, both considered vendors of “genuine luxury” have seen a significant rise. So while Juicy Couture and Coach aren't getting bought, Hermes bags and Balenciaga pants still have wait-lists.

The new economic trend poses a big threat to the way women are shopping right now -

If "affordable luxury" brands go under, then we can either shop way up (Chloe jeans!) or way down (Old Navy jeans!). And for millions of women used to living in Barneys Coop, that's going to be a problem.

Also:

What does this economic slow-down mean for companies like Banana Republic and J Crew, whose prices are already too high?

--NATALIE HORMILLA

posted by guest

Nov 09, 2007 4:55PM

wow that is going to be a problem.. WHAT ABOUT THE BROKE AS A JOKE FASHIONISTA/HIGH SCHOOL OR COLLEGE STUDENTS.. they better raise minumum wage!!lol

posted by Lindsaysue12

Nov 09, 2007 6:14PM

I think BR and J.Crew will do just fine. I'm aware that BR is doing fine...its Gap they need to worry about.

posted by DC Goodwill Fashionista

Nov 09, 2007 6:44PM

Yeah, J. Crew and Banana Republic need to check themselves before they...you know, wreck themselves and whatnot. I've been a big fan of both stores, but haven't purchased anything in ages because I know the quality of their merchandise simply doesn't justify their ever-increasing price points. Perhaps they should come to terms with the fact that they're mass-market stores that are located mostly in suburban malls? Not everybody needs to trade up. -the DCGF

Nov 09, 2007 6:48PM

Ha. I think this is the least of our problems honestly.

posted by socialista

Nov 09, 2007 7:46PM

I think this is a really great article, and brings up valid points. It seems like there aren't many brands that are inbetween. You can't seem to find a good dress for less than $200/$300.

posted by GGCC

Nov 09, 2007 8:30PM

But it's also about the cache of the brand -- Nordstrom and Macy's have down market images while Saks and Neiman Marcus cultivate a more upscale brand persona. But you could buy the same Anna Sui dress at all four places....

As far as price points, it seems like the Lucky demographic boutiques and such do a healthy business in smaller labels that would cost you about the same item by item as the newly pricey J Crew stuff...

And isn't this all part of the larger problem of the disappearing middle class, rich get richer / poor get poorer thing?

posted by Cynthia C

Nov 12, 2007 10:21AM

Yeah, Lindsaysue is right. Banana keeps Gap afloat. I shop at Banana is because they have petite sizes, which are better for me than regular. But lately, their sizes have been very generous , and size 00P isn't available in Canada.

Nov 16, 2007 2:26PM

What's wrong with old navy?