AUSTERITY
Why Austerity vs. Luxury?
The end of "era of mass consumption" & the birth of the "age of austerity"
The growing divide between the rich and the poor resulting in the squeezed middle.
Both in the UK & also Globally.
Economies split traditional (little or no manufacturing (reliant on service industry & our consumption), high level of debt, consumers need a reason to buy) vs BRIC(new economies i.e. Brazil - 6th biggest economy) ( Restrained consumption, strong manufacturing bases or natural reserves, low debt, growing wealth).
Since the recession we have started to see a change in the rules ...
- Ways we do business
- Who we sell to and the way we sell
- A reassessment of what we have to offer as a country
- Aesthetically design codes have also seen change
Key Drivers.
The current economic situation can be mapped out right back as far as the start of the industrial revolution ( 1790's-1860's) However even if we go back as far as the 40's there are a number of similarities & key drivers that bring us to the point where we are today.
1940's Key Drivers.
- the 2nd world war
-rationing, allotments & make do & mend
-post-war industrialisation
-high level of debt ( to USA)
- high birth rate & the introduction of the baby boomer generation
- the introduction of the welfare state.
Key Drivers - 50's - 70's
- post war economic boom went on until the 70's
- the advent of the teenager
- popular culture
- women's desire to work & have financial freedom
- the introduction of credit cards, cash machines, & desire to own home
- international travel.
Key drivers 80's - "Greed is good"
- top down economics ( tax cuts to wealthy to increase growth)
- the de-industrialisation of the UK
- the YUPPIE
- period of boom & bust
- civil unrest with riots, miners strike
key drivers 90's
- global monoculture
- information age
- personal electronics, mobile phones & video games
- utilitarian aesthetic
- 24 hour & Sunday shopping
- population growth through migration.
2000's Key drivers
- high employment
- growth in consumer debt ( at end of 90's had doubled from 80's)
- cheap finance, property boom & equity release offers
- conspicuous consumption - "Bling" & "IT" bags
- throwaway fashion
- continued rise & expansion of the supermarket
By the late 2000's we had already seen a change in direction due to the September 11 attacks & the subsequent war on terrorism etc. We began to feel threatened so wanted to look to past/ family & friends for comfort. We had already become to understand the environmental impact. Recession bought about a time for us to stop & reflect. It also brought about the age of austerity and the end of our mass consumption. We have started to explore new models where we no longer need to own or physically produce an item.
We also started to become more radical & angry with companies that didn't fit our ideals. Plus the rise in social media also gave us a voice. the feeling of being squeezed cannot be underestimated - and has lead to significant growth in the value sector.
The age of austerity is defined by:
- the value sector showing huge growth
- Primark and Sainsbury grew their uk clothing sales by £1.1bn and £0.46bn respectively between 2005 and 2010.
But it has challenges too, wage inflation in Chine, Sustainability issues, increase in cotton prices etc.
Austerity is not just about e value sector, but wanting a reason to connect for the middle market/luxury sectors.
it has created more austere aesthetics : -rough luxe -hidden luxury -brand quietness.
Austere - darker tones/dull/simple/paired back/clean lines.
Re-defining Luxury
The recession & the loss of the "pressitge (prestige for the mass market)" market has also led to significant shifts in the luxury sector.
- heritage & craftsmanship
-Eco luxury
- Bespoke & ultimate exclusivity
- new technologies.
A return to heritage & craftsmanship is probably the most obvious direction, however it is not always the easiest to achieve for newer luxury brands
- brand resonance
- workmanship & traditional skills (can be difficult to find)
- materials of highest quality
- brand quietness i.e. Mulberry & Louis Vouitton
Eco-luxury is also another growing area, but again can be difficult to do well - also can be a complete dichotomy
- innovative materials & production methods
- working with artisans & craftspeople
- caters to growing celebrity status/ over seas markets i.e. Vivienne Westwood, Stella Mccartney & Lotus
Developing bespoke & individual items has developed around the need to cater for the extremely rich.
- wide range of services from traditional bespoke suiting to diamond encrusted ipads.
- growth in concierge services
- differentiates itself from prestige goods
-connoisseurs of luxury products i.e. Louis Vuitton, Couture shows.
Using new technologies in the luxury sector is often where fashion takes the lead
- social media (live tweets/feeds of shows)
- Augmented Reality, 4G & 4D technologies
- E-commerce & mobile shopping (& reducing the order process) i.e. Ralph Lauren, Burberry, Prada,Chanel.
1st talker - textile designer
moda show - birmingham.
Davinder Madaher
2nd talker - Social media: challenge & opportunity
Harvey Nichols using Youtube to brand i.e. The walk of shame, shows that if you did the walk of shame in Harvey Nichols then you would look so much better and would look more glamorous,. The video is quite fun and edgy and shows the clothing off well and caters to their clients and gives a reason to why you should pick a Harvey Nichols new years eve dress.
3rd- male grooming
4th talker - Lucy (fashion writer & trend forecaster)
Forecasts future trends and owns a Vogue endorsed ecommerce trend portal. Pret-a-rever
it is fashion editorial within the season.
editorial is very product led i.e. Net-a-porter can still have 400 pairs of shoes they need gone and so you'll get a special e-mail saying their great for the weekend etc.
live in a consumer led culture.
The Design Democracy/Dilemma
Karl line at net-a-porter, wont allow Chanel products online or to the website to be linked too. Chanel is a brand who engages with blogger and don't want their lines on net-a-porter. he has developed a line though to sell on net-a-porter, the high street are making a living off the back of these designs and now they can get the millions instead of the other high street stores.
item Vs idea. market is focused on the item i.e. "must-have" it's taking fashion away from the creativity.
Fashion is void of creative people now.
pret-a-rever is about the dreams and inspirations that exist within collections.
Designers are trying to communicate with customers - Lanvin's video - pitbull
