Versace Rethinks Business Strategy during Economic Decline
It is no suprise that the luxury goods and fashion sectors have seen a decline since the country has been in a recession. Most people are feeling the pinch in their paychecks and in their walets. Italian fashion empire Versace is now having to cope with this as well. With sales down, and the general public retreating back to the simple things way of life, how can a major luxury brand such as Versace continue to thrive?
Versace is renowned for bold designs and high profile celebrity campaigns as well as the luxury and excess. The luxury and lifestyle brand has a wide variety of different collections ranging from ready to wear, couture, purses, resorts, and accessories. One of the most successful subdivisions of the accessories line includes Versace eyeglasses and sunglasses. Now that the market has slowed down, more consumers are turning to these accessories as a way to instill the same luxury they are used to but without the hefty price tag.
Now that the demand for luxury goods is down, Versace is being forced to rethink its business strategy. We all sense the economic downswing in our paychecks and our wallets so cutting prices would be one of the first things to consider. Nowadays, even the mega-wealthy are scaling back on the shows of excess and consumption. Taking a cue from this, Donatella may want to tone down the designs for the apparel collections. And finally, the accessories are a big hit and could in the end save the company. With the economy in mind, we can justify a pair of Versace eyeglasses from Eyeglasses.com before we could explain paying retail for a new Versace cocktail dress. Not to mention, those glasses can be worn everyday for years, while the cocktail dress is good for a few spins on the dance floor. Luxury accessories give us the same exquisite feeling without the grand price tag. These accessories could be just what we (and Versace) need to get through this recession.
