Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

In Rare Move, Luxury Goods Peddlers Cut Prices

Economic downturn forces 'creative' thinking

By Matt Cantor,  Newser Staff

Posted Nov 14, 2008 9:47 AM CST

(Newser) – Facing a worldwide economic downturn, some makers of luxury goods—designer clothes, bags, shoes—are breaking with long-held tradition and trimming prices in the US, the Wall Street Journal reports. Companies such as Chanel, Versace, and Chloe are making cuts of up to 10%. Still, when image is key, purveyors of designer items can’t risk lowering prices too much; a sinking price tag can mean a sinking profile, the Journal notes.

“Never before have we done this,” said Chloe’s CEO. But “this is an unusual time. You have to be creative.” Sales of luxury items are slowing; Italian jeweler Bulgari, for example, saw its third-quarter profit drop 44%. The rising dollar, however, should keep the books fairly steady for most European fashion houses, with US sales bringing in more than expected.

Models present creations designed by German fashion designer Karl Lagerfeld for Chanel's spring-summer 2009 ready-to-wear collection in Paris, Friday, Oct. 3, 2008.
Models present creations designed by German fashion designer Karl Lagerfeld for Chanel's spring-summer 2009 ready-to-wear collection in Paris, Friday, Oct. 3, 2008.   (AP Photo/Jacques Brinon)
Fashion designer Donatella Versace, right, speaks during a news conference held in Beijing, China, Wednesday, Nov. 12, 2008.
Fashion designer Donatella Versace, right, speaks during a news conference held in Beijing, China, Wednesday, Nov. 12, 2008.   (AP Photo/Andy Wong)
Shoes designed by German fashion designer Karl Lagerfeld for Chanel's spring-summer 2009 ready-to-wear collection are seen in Paris, Friday, Oct. 3, 2008.
Shoes designed by German fashion designer Karl Lagerfeld for Chanel's spring-summer 2009 ready-to-wear collection are seen in Paris, Friday, Oct. 3, 2008.   (AP Photo/Jacques Brinon)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

10 Celebrities Turned Fashion Designers

It's True: Designer Labels Will Make Your Life Better

5 Fashion Week Trends

Inside Kate and Andy Spade's New Life

LiLo Expands Fashion Line


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne