Can gloom spell upturn for planet?
As belts are tightened, consumers should shop not just less but better,and cherish what we buy
Dr Jem Bendell, Today Online 10 Nov 08;
COCO Chanel once said that “luxury is a necessity that begins where necessity ends”.
Consultants Bain and Co think the current economic conditions mean you will focus more on the basic necessities, and so find luxury less necessary than ever.
They predict a 7 per cent fall in luxury sales next year. The impact will be uneven, with shoppers for more accessible brands such as Ralph Lauren thinking twice, while those who can afford to buy Hermes will likely still afford to do so.
Overall, many in the fashion industry are worrying about a fall-off in sales. But the real challenge is the falling appeal of consumption as an end in itself, as people reconsider their view of wealth and success.
“In grim times, it becomes distasteful or simply unfashionable to spend money on bling or what you might call conspicuous consumption,” said Mr Rory Sutherland, vice-chairman at advertising agency Ogilvy.
Mr Andy Lear of French advertising agency Publicis said awareness of the financial situation is accelerating a trend away from ostentatious brands. “People had already been looking for something more meaningful than just chasing cash and buying things that look flashy,” he said.
Online retailer Portero, a kind of eBay for luxury goods, is experiencing a massive upswing of people seeking to sell off their branded items.
As an environmental advisor, I like recycling. But this tells us something about how people who once loved luxury logos are changing their minds as the economic mood changes — and along with it, the cultural tone. What all self-respecting fashionistas will be thinking in the coming weeks is, what is the right outfit for an economic downturn? What will be ‘recession chic’?
My belief is that the real trend to emerge will be a return to authentic quality. Not just quality for the individual consumer, but quality for those involved in making it and for the wider environment. Why do I think that? Because you do, according to market research. New studies by famous agencies point to a wave of environmental awareness sweeping Asia. In September, agencies from WPP found that 31 per cent Chinese consumers now see the environment as a higher priority than the economy, as against 28 per cent in the United Kingdom and 17 per cent in the United States.
In addition, 69 per cent of the Chinese respondents said they expected to spend more on environmentally friendly products in the next year.
Earlier this year, the French market research agency IFOP found 60 per cent of people in China think about the environment when they shop. These studies show high levels of concern across Asia, from India to Taiwan.
A critical social, environmental role for luxury brands
How will that concern translate into fashion? To get an insight into that, we must understand the nature of the environmental challenge.
Today, humanity consumes more than five times the natural resources it did 50 years ago. We are using up more of the earth’s forests and fish, and testing its capacity to absorb our wastes more than it can cope with.
This means we need a different type of consumerism. It is time to shop less, shop better, look after what we buy, cherish it, and through that, embody a positive response to the challenges we face.
It is even time for companies to come out in their advertising and speak of this challenge, and call on us to buy less stuff, buy better stuff, look after it, eventually repair it, hand it on, or recycle it. If they can provide that kind of quality and lasting style, then they would be justified to encourage us to buy from them.
This is where the companies and brands that like to call themselves “luxury” have an important role to play.
They have the margins and the mandate from consumers for craftsmanship and lasting quality. In a world with high inequality, social challenges and an environmental crisis, the future of luxury is to be the best possible social and environmental brand.
The good news is that this take on ‘recession chic’ can be beautiful, creative and fun. That was the message from EcoChic, the recent ecological fashion show in Hong Kong, that featured top ecological designers as well as an auction of vintage luxury clothing. The dresses were stunning. It is a theme I will be exploring later this month at the Global Social Innovators Forum here in Singapore.
Some business leaders and public figures tell us, “don’t panic” and “carry on shopping”. That will fuel the economy and stave off economic disaster, we are told. It is the same story in cities worldwide: We have become the ‘shop or drop’ society.
What happened to buying things simply because we needed them, or wanted to give them to someone dear? How did we reach a point where the quantity of shopping mattered more than its quality?
An economic recession may help us think again about what matters in life, and how we express that through fashion.
At times like this, perhaps it is only right to wear our soul on our sleeve. Recession chic? It’s got to be eco-chic.
Dr Jem Bendell is founder of theAuthentic Luxury Network. He will be at the Global Social Innovators Forum held here from Nov 28 to 30.
