As global economic crisis hits all industries, quite a lot of fashion companies are also beginning to fall into credit problems as well. It is because consumers usually slowdown or stop spending on clothes and accessories during times of recession. These last few months, there are numerous companies across the globe which has filed for bankruptcy.
Recently, one among the massive names within the fashion industry was added to the list of companies having financial problems. Morgan, the 40 year old French retailer company has declared their negative condition. This retailer has stores located in 57 countries and has reached its popularity peak in the 90s.
Several celebrities have modeled in its advertising campaigns – these include Carla Bruni, David Ginola, and Mischa Barton. The corporate is hoping for a take over but that still remains to be seen.
IT Holding and Chanel
IT Holding is parent company to Malo and Gianfranco Ferre. But currently, it is negotiating for a partnership deal together with an investor (Chinese) so as to assist their finances.
Also, Chanel has just announced their plan to remove 200 jobs of their Paris office. This decision has come in the midst of recent concerns for this luxury label, followed by the announcement to cancel their planned events for “Mobile Art,” Chanel’s touring museum. Although Karl Lagerfield, Chanel’s label designer has said that this move was just an artistic choice.
Some fashion labels in Italy are holding emergency talks along with the Italian government and appealed to support their industry or a minimum of lessen the results of their financial slowdown.
But still, many big labels need to launch lines which are more affordable with a view to entice costumers to bring out their wallets. In reality, Michele Norsa from Salvatore Ferragamo said that they’ll no longer sit and wait for his or her customers to enter the shop on their very own.
Another recent shocking announcement was made by Betsey Johnson and Vera Wang – they said that they won’t be showing their collections for fall 2009 due in February because of the down turn in the economy. This move may be followed by other labels, since shows will cost them thousands of dollars if they pushed it on.
The industry experts are commenting that there could be a likelihood of smaller or more reserved shows following the trend set by many designers. Also, it appeared that the designs were also affected by the crisis because many shows showed only quiet colors and minimalist lines.
However, it is not all gloom and doom – now there are numerous bargains that you’ll find (this includes as much as 40% off in Prada’s Milan stores). Since companies are luring customers back to their shops, a lot of them might find that 2009 is the year where the spending power of consumers return.
Many companies might concentrate on classic pieces which have longer shelf life. Moreover, there are predictions that 2009 trends will indicate that you can wear again a number of the pieces from the past seasons. And by the point this crisis is over, it’s extremely likely that major players will again produce extravagant creations.