Luxury blues

The financial crisis has hit the luxury market in Japan like a sledge hammer. In the past, problems with the economy always hit the luxury sector of the market last. It would stand to reason that consumers who purchase lux goods are not spending from their pay check, but for some reason that logic does not apply this time around. Hiring for many of the strongest brands has stopped on order from HQ.

The casual and High street sector, on the other had are doing great. My theory is that the lux consumers have migrated to the HS brands. Especially with the coming of H&M, consumers are starting to get the notion that you can get good (not great) quality and well designed stylish good without paying the luxury tax. Perhaps what we are seeing is also the beginning of the re-aligning of the Japanese apparel market much like Coach has been doing for bags since 2001.