A fashionable economy?

As I was driving to my neighbourhood shopping plaza today, I was listening to the BBC radio. As the economic world report was in progress, I realized my mind is forever fixed on fashion. Here's why. The presented said, "The cost of oil has risen. Therefore, the price of diesel and other energies will also rise." My first thought: "oh my god! Diesel and Energie have raised their prices and now denim will be more expensive!"

Fashion is consuming. Buyers beware.

A Designer Economy?

You'd think it was common sense, but I've officially understood that an economic depression is simply this: depressing. When everyday people are worried about their personal finances and the vitality of their future, the psyche becomes battered and bruised. Whilst those feelings are never en vogue, there are several positives from this negative economic reality.

Firstly, we must benefit from this teaching moment. Most people under the age of 50 have never really felt an economic pressure like we've experienced over the past few years. We didn't really have to worry about money, our financial stability, or whether or not we could pay our bills and provide for our families. But on some level, no matter how great or small, we've all felt the pinch in our pocketbooks.

I've said before that I really think the economy has done the retail industry a favour - it has eliminated the retailers who weren't at the top of their segment in customer service, shopping experience, selection of inventory, and customer friendly policies and procedures. Circuit City was never Best Buy. Additionally, those "museum shoppers" or people who would constantly come in to a store but never buy anything have stopped the playing the game of "just looking but not buying" and allowed associates to focus on their actual potential clientele.

With that being said, I'm really excited for those individuals who have and are still able to stimulate the economy and promote growth through shopping and commerce. The luxury industry has felt the pressure for sure, but the most successful and prominent brands have readjusted their approach to recapture, redefine, and refocus on their actual demographic and clientele. Designers have strengthened their visions and honed in on brand heritage and history. After all, fashion is the ultimate fantasy and escape from reality.

Luxury brands in particular are investing more than ever to cater to the needs of their clients. With unprecedented access through internet sites and ecommerce portals, companies like Burberry, Gucci, and Marc Jacobs are increasing their profits and intensifying brand identity constantly through virtual stores and the most mesmerizing multimedia campaigns.

Companies are also taking chances to further their positions and leverage their business. Marc Jacobs has intensified his identity and shaped his consumer's lifestyle choices with his bookmarc bookstores. When designers offer consumers an opportunity to live the life, everyone wins. When you sell the lifestyle, the emotion, and the romance, product suddenly flies off the shelf. For example, I could tell you that the Lady D collection from Christian Dior is a trendy handbag with a quilted pattern and looks great for all occasions. Or I could tell you that the Lady Dior collection was created in 1996 at the request of Madam Chirac for the eternally elegant Princess Diana to serve as a symbol of France, and that quilted pattern is called Cannage, a Louis XVI print that was found on the gold gilded chairs in Christian Dior's original main salon. Suddenly the bag is not just another bag, but a piece of art and history, a focus on fabulosity if you will.

Another great economic lesson - better quality goods are more expensive than their cheaper counterparts, but are often longer lasting. US$250 for a pair of Diesel jeans might seem expensive at first glance, but when you're still wearing those jeans 10 years later, the investment suddenly seems more reasonable when you consider paying just US$25 per year for amazing denim.

Economic distress also forces companies to re-evaluate their business models. When money is no object, customers are more inclined to spend more frivolously. Designers can sell anything and everything with their name or a logo. Marc Jacobs sold pet gear called Bark Jacobs. Dior sold baby bottles and other infant items. Versace sold a helicopter. But when the buyers dry up (or start being a little wiser with their money!), designers refocus on the more lasting categories.

Hopefully, we're saving more money than we might have before. Having immediate availability and access to cash and assets is incredibly important. A small nest egg in the bank is the new must-have accessory. Additionally, quality and value now play an even more important influence when making purchases - from basic necessities to the most exclusive of luxuries, customers demand the best quality their money can buy. What do you think?

A World of Fake

They say imitation is the greatest form of flattery - but I really must say that imitation is hazardous... to your health; to your economy; and to my livelihood.

I'm watching a programme on CNBC called "Crime Inc: Counterfeit Goods." It is an examincation of the counterfeit-goods industry, and includes a profile on the Los Angeles Police Department's anti-counterfeiting unit; inspections at ports for counterfeit goods; backroom factories where counterfeits are produced; and a couple who was paralyzed by faux Botox.

I never really used to care much about the act of counterfeiting goods until I worked at Christian Dior. When I'd see people with fake handbags and luxury items, whether from Dior or any other brand, I'd get so upset. Why? Because I know that those skilled artisans who have mastered their craft and create the real versions were missing out on money that should be rightfully theirs. Let alone the shipping companies who lose out on transporting legitimate goods, the countless people employed by those luxury houses who manage, promote, market, analyze, track, and sell those oh-so-fabulous goods.

Counterfeit goods extends so much farther than luxury knockoffs. From fake Disney toys, to computer parts, to appliances, to extension cords, to laundry detergent, if there are products in demand, you can assume there are counterfeit versions available. And these goods are potentially hazardous to your health. Think about it - those who produce counterfeit goods only have one thing on their mind. Not your safety. Not brand integrity. Not quality materials. PROFIT! The counterfeit industry is in existence solely for one purpose - to make money.

In 2005, nearly US$ 500 million dollars in tax revenue was lost due to the counterfeit goods industry. Whenever you buy fake goods, not only are you putting your own health at risk, but you also directly support economies other than your own. Your neighbours suffer. Your local government has less resources.

Among the most lethal counterfeits are medicine. From fake cough syrup to cancer treatments, the counterfeit medicine industry is nearly US$75 million this year alone. These ingredients are also very toxic, rarely tested, and incredibly harmful. Drugs appear shiny and clean, because counterfeiters hope you can't tell a difference.

Caveat Emptor: Buyer Beware. I can't help but think of the song "The Boy is Mine" from singers Brandy and Monica - "From the truth you can't escape, I can tell the real from the fake!"

Can you?