When fashion designer Carolina Herrera says it, you got to believe it. She says luxury is back, and that her customers are beginning to spend once again. Carolina Herrera said so in an interview to the Wall Street Journal. Her statement comes at a time when one hears of whole garment chain stores vanishing in the recession air, fashion designers and jewelers going bankrupt, and elitist homes going up for sale.
Herrera is known for her stately ladylike gowns and dresses which cost not less than $10,000, meant for rich women. Her new designs were on the runway at her fall 2010 fashion show this week in New York City. Herrera lowered her prices about 10 per cent, and notes that while her customers buy fewer clothes than before, they have not stopped buying luxury clothing entirely. She is hinting at the older version of luxury.
With recession at its peak through the last couple of years, Herrera catered to cost conscious consumers without damaging quality or image. Her company laid off five per cent of its employees. Its longtime president, Mario Grauso, departed in September to run Vera Wang. Herrera plans to expand her lower-priced CH Carolina Herrera line, adding 17 shops this year. Herrera heads a global firm with 153 points of distribution.