Jeans is primarily an American product and still enjoys a huge demand from the American consumers. For the year ended April 30, the American’s bought men’s and women’s jeans worth $13.8 billion. Only one percent of the total jeans sold in the US could be classified as premium denim that sold for luxury prices. It was Gloria Vanderbilt and Calvin Klein who introduced the world to so-called designer jeans decades ago. The trend has endured over the years but still forms a miniscule portion of the total sales of jeans.
The recessionary phase during the economic crisis had hit the premium jeans industry very hard and the prices had to be scaled down by as much as 50%. But the market situation has improved now and the prices are edging upwards again. Los Angeles, is the global capital of so-called premium denim. An industrial zone here near the city’s center is home to True Religion, J Brand, Seven For All Mankind and other pricey denim brands. J Brand’s Maria women’s jeans can sell for $226. Men’s Aidan jeans from Seven For All Mankind cost $225. All premium jeans are made in the US which is their USP.
True Religion is launching its new design called the Phantom. They are already working on an advertising and marketing campaign created around the jeans. The brassy original logo has been replaced with a subtle logo on the pocket to match the current anti logo trend in fashion. The phantom has a small American flag hand-embroidered on the waistband. The prices of premium denim is high not because it costs more to make it but because traditionally in fashion a big part of the price goes into servicing multiple profit margins taken at each level of production. The disproportionately high margins are also necessary to cover huge marketing budgets and overheads.
Via: online.wsj
