Over Exposed, Over Priced, & Over Crowded

One of the factors as to why some luxury brands are failing may be due to the market being over saturated with countless labels and not enough unique ideas. In addition, brands are everywhere all the time, creating fatigue. From endless social media communication to excessive retail destinations, consumers are not as excited about brand initiatives as in the past..…a major lack of “this feels special” seems to cloud the luxury fashion industry. Finally, the prices of luxury goods have become absurd. Walk into any luxury department store and aim to buy a designer label sweater that you fall in love with it, you probably think twice and perhaps pass. Impulse buying based on sudden excitement has completely changed due to over the top pricing strategies currently in place. Consumers have to think way more than ever before. Crazy prices have taken the fun out of fashion and shopping. Luxury houses need to focus on value and values evolve. Price in luxury does not have to be a problem as long as the VALUE is clear.

Meanwhile, some well positioned labels in the less crowded high-end market are thriving. These labels are perfectly positioned to satisfy the desires of of some luxury shoppers via beautiful designs, quality products and a price tag these clients are willing to pay.