Luxury buyers reject brands such as Burberry in favor of premium-class products without a logo.
Fashion brands have long become a status symbol for those who love to boast of their financial position. In the past decade, fashion houses such as Gucci, Fendi and Louis Vuitton have sought to use their company logos as an integral part of their style, decorating T-shirts and bags with them, as well as putting repetitive prints on coats, suits and other wardrobe items.
However, now such a trend often causes a negative, as more and more buyers of luxury goods are beginning to think about their attitude to fashion and pay special attention to conscious consumption. Giving paramount importance to quality, they prefer a new type of product: premium purchases directly from the factory without any logos.
Victoria Buchanan, senior strategic researcher at Future Laboratory, said: “People need openness and sincerity, which means that brands cannot rely only on their heritage and logos. This means that due to the fact that more and more buyers first of all pay attention to the value and value of the goods, the time of high margins may very soon become a thing of the past. The challenge for brands is to find new ways to convey this value to an increasingly cynical consumer. ”
Recent racism scandals from luxury brands Dolce & Gabbana, Prada, Gucci and accusations that the Balenciaga brand is profiting from its World Food Program charity collection have increased distrust of luxury brands, which made conscientious customers doubt the need to remain loyal to brands. . A study by Cohn & Wolfe showed that only 23% of US consumers believe in “openness and honesty of brands”, while in Western Europe this figure drops to just 7%.
Relying on the fact that we are tired of paying exorbitant prices for the purchase of designer accessories ("the margin on the Gucci bag (eight times) exceeds the factory price"), Jeremy Tsai launched Italic – an online marketplace with a membership fee that sells bags and sunglasses , leather and cashmere products and household goods directly from factories recognized by manufacturers working with Prada, Burberry and Givenchy, at much lower prices than their branded equivalents.
Marcia Kilgore: “Customers are being cheated. The Beauty Pie brand sells £ 100 for £ 10, buying it directly from the factory. ”
“Previously, you would have to come to an Italian boutique where the staff would whisper in your ear what this bag was made at a factory producing premium brands, or that people who work at Christian Louboutin did this pair of shoes,” explains Tsai sitting in his los angeles office where he has a waiting list for one hundred thousand people eager to give away $ 10 a month for access to premium products at a decent price.
Starting products include a nameless collection of leather bags for $ 150, made by the manufacturer, who worked with the French brand Celine, where the price for a similar accessory in dollars is a four-digit number. The site also features quilted bags from manufacturers who worked with Givenchy, cashmere scarves from a Burberry factory, and luxurious satin sheets similar to those used in The Ritz-Carlton and Four Seasons hotels.
“Most European factories work with several prestigious brands,” explains Tsai. “We carry out a thorough selection and carefully check the data on the factories: for each with which we enter into a contract, there are another 25 that have not passed the test. Through us, they sell original things – they are different from the versions they produce for brands. ”
This concept has already been tested on herself by Marcia Kilgore, the founder of Bliss Spas, FitFlop, Soap & Glory and Beauty Pie, who sell high-quality cosmetics and skin care products produced in the same laboratories as those sold in the luxury segments of stores. cosmetics and perfumery.
Customers who signed up for the Kilgore online club, launched two years ago, have access to high-quality products sold at factory prices. “Usually, in order for a brand to get a 10 pound profit, the buyer has to spend £ 100 on the cream – such a difference comes from marketing, distribution and interest paid to retailers,” says Kilgore. “Women are powdered by their brains: they have been deceived for a very long time. But now buyers are asking questions. Now there are definitely women who will no longer buy it. I do not think that I need to buy goods of a certain brand in order to feel full-fledged or to enjoy social approval. The Beauty Pie brand sells £ 100 for £ 10, buying it directly from the factory. We earn a monthly subscription, which starts at £ 5. Our business is completely transparent, and women love our products because it works. ”
As Buchanan emphasizes, “rejection of branding only makes sense when the product is designed with a clear goal and an obligation to save time and money for customers”, but given that the belts are tightening all the tighter and more and more people are becoming aware of the degree of corporate greed a business model working directly with factories may become a new fashion trend.
Do you think your sneakers were created by slave labor? Probably yes. Read more about this link.