The Global Luxury Prank

Is it luxury or is it trendy,  which are we actually paying for?

Luxury: 1 the use and enjoyment of the best and most costly things that offer the most physical comfort and satisfaction 2 anything contributing to such enjoyment, usually something considered unnecessary to life and health 3 a) the unusual intellectual or emotional pleasure derived from some specified thing: as, she can’t do without the luxury of tears b) something producing this pleasure
Source: Webster’s New World Dictionary of the American Language College Edition

Trendy: 1 the general direction of a coast, river, road, etc 2the general tendency or course, as of events, a discussion
Source: Webster’s New World Dictionary of the American Language College Edition

There are several factors that go into a luxury product: Investment, Quality, Service, Exclusivity, Market Value, and Timeline.  Everyone is welcome to spend their money as they see fit; however, at a certain price point, all aspects of luxury should be guaranteed. Within the luxury fashion market, there are three main tiers: Contemporary, Luxury, and Ultra Luxury. You could further divide these tiers, but that’s semantics.

Within every luxury tier, there are usually several heritage brands; however, that doesn’t automatically justify a high price margin. We recently saw Burberry, a long-standing British brand, had to reduce prices after overestimating the weight of its name to its customer base. We’re also witnessing Chanel test the limits of their infamy, which has caused surges of criticism. It appears very clear that Chanel is trying to price out its customer base, with online discourse saying they are trying to be like Hermes. Chanel, unlike Hermes, has downgraded their quality in specific areas that are a major source of sales for luxury houses. Quality complaints seem limited to handbags and costume jewelry; however, Chanel is notorious for bad customer service. There’s also the yearly price increases that don’t appear justifiable. Alas, we’ll have to wait and see how long this goes on before Chanel’s quality improves, as quality is a hallmark of luxury.

Typically, good quality takes time; the timeline can be shortened with experience, but instant gratification is not to be expected for good quality garments. Regardless of whether a garment is hand-stitched or machine-stitched, man-made or natural fiber, the level of care should be evident based on sight and touch. Mass producing “luxury” goods initially created a larger profit margin and then became a gaping hole of exploitation. Fast fashion practices becoming standardized is the antithesis of high-end fashion. Based on the lack of manufacturing transparency, paired with several legal cases, these brands are well aware that these practices tarnish their names. Not to imply that practices employed in fast fashion are suitable, it’s just unfortunately unsurprising to the public.

Should you be a conspiracy buff, you could say tarnishing the Made in Italy/France stamp is in response to the reputation given to Made in China. On the other hand, the factories in question are Chinese-owned, further damaging the reputation of the ethical and high-quality factories in China. In the eyes of the US, cheaper labour is the point of outsourcing, which has now caused a massive inflation in US manufacturing that will be expensive to fix if the nation were to take steps for increased self-production.

In other words, the luxury industry is looking a bit bleak. How long before a necessary reset, who knows? I’m not expecting the Ultra Luxury brands to go out of business; however, it’s not a stretch to think they may lose some investors based on the ever-pervasive nature of greed. Yet an all-around scale back is potentially what is needed to bring back the luxury.