Source: Business Insider, Aug 2012
Sales of designer shoes and handbagsare plummeting as consumers realize they can get the same product for much cheaper.
This spells trouble for the luxury retail companies who have long considered the categories to be their cash cow, luxury guru and Unity Marketing founder Pam Danziger said in a report. According to her research, people are buying just as many personal luxury items, they’re just spending less for them.
“Spending is down both quarter-to-quarter and year-to-year. This indicates that consumers are still buying, but paying less for their fashion accessories, perhaps by looking for sales and discounts, and perhaps by trading down to less premium brands.”