Fashion Earthquake

First of all, many prayers to the Japanese people.

The Fashionomist was surprised to discover that Japan is the source of 11% of global luxury goods sales - even with China and just behind luxury goods powerhouse America.  Stocks have plummeted amid investors worried that the normally fashion-conscious and designer-aware Japanese will completely stop purchases of luxury goods in the coming months.  Thus far, Burberry, Gucci, and YSL have all reported losses.

Luxury sales are a parameter of consumer confidence - the healthier an economy, the more comfortable people feel about purchasing luxury goods.  As The Fashionomist has noted in earlier posts, this very trend has been playing out in the American economy.  But the global aftershocks of the tragic earthquake-cum-tsunami-cum-nuclear-meltdown may translate to a global mood downer - precisely the last thing lux brands want splashed in their fast post-recession.  A stagnant market that had just gotten on the uptick is now beginning to sputter.

The slight cynic in The Fashionomist therefore is not completely sure about the sincerity of intentions in the outpouring of aid from the fashion elite this week.  Bergdorf Goodman, David Yurman, Gucci, and Swarovski have launched Red Cross campaigns, while other brands have utilized social media to raise money.  Experts aren't as cynical as The Fashionomist, however, stating that the Japanese connection to high fashion has hit luxury brands hard emotionally.  Greg Furman, president of the Luxury Marketing Council, thinks that "brands are not donating just because they think it makes them look good.  Brands that give significant amounts of money must legitimately want to donate to the cause."  Recall Tokyo is one of the fashion hubs of the world, on par with Paris, New York, and London, so luxury brands have been directly affected, many with offices razed to the ground from tremors and workers who have lost family in the aftermath of the tsunami.

It is in the industry's best interest to get Japan back on its feet as quickly and safely as possible - the fashion industry owes so much to Japanese ingenuity and bold vision.  Until then, however, the world's utmost concern should be rebuilding the Japanese country and preventing further harm from the nuclear meltdown.


*The Fashionomist*

Sources used in this post:  http://www.guardian.co.uk/business/2011/mar/14/luxury-goods-firms-effect-of-japanese-disaster and http://www.luxurydaily.com/what-luxury-brands-are-doing-to-help-japan-victims/