What: Retailers, like Macy’s and Saks, are fed up with paying top dollar for designer fashions that probably won’t sell too well anyways. Who wants to buy a thousand dollar dress these days? So, instead of devising some marketing strategy to convince shoppers that they really do need a new Gucci purse, they’re just asking designers to lower prices. Why didn’t they think of that before?
What We Say: We agree with the The Cut’s take on all of this – while designer fashions might be cheaper for us down the road, they won’t be that much cheaper. If we don’t have a budget for $700 stilettos today, we won’t have a budget for $500 stilettos tomorrow. It’s more about values than anything, but some designers – like Versace, which refuses to lower prices despite its decreasing profits – just don’t get that yet.
We give them another month of misery and maybe then they’ll rethink their business plan and come to realize that “brand preservation” is a moot point when no one’s buying your stuff. Guess what Versace? You’re not too good for basic economic theory; supply and demand affects every business; it’s okay to admit you’ve been affected, too.