Versace Rethinks Strategy as Business Declines
The Versace aesthetic of glamour, celebrity, and over the top excess now seems wildly out of place during these tough economic times. The sales figures tell the same story. The luxury market is down, way down, as the rest of the world tries to recover from the mortgage crisis and loss of their retirement funds.
The bold and lavish designs of the fashion house are intended to stand out. Now that consumers are cutting back, austentatious fashions are off the menu for most. To compensate, shoppers are turning to luxury-lite items such as Versace eyeglasses, scarves, handbags, and other assorted accessories to add luxury to a lower budget outfit.
People are aware of the economic issues facing the country. We are all coping the best way we can. That means trimming the fat in our wallets and wardrobes. Hunting for bargains and sales is at the top of the list. Rather than buying new outfits, we are revising old ones with new accessories. We splurge occassionally on luxury items but typically the ones we can get good mileage out of. Versace eyeglasses, handbags, shoes, etc., are just the kind of items that get good mileage and can be worn for years to come. If Versace trims prices and keeps turning out great accessories, it will no doubt outlast the recession.
