The luxury market is changing, everything is changing due to economic instability. Despite tough times though, luxury will not be lost. As stated by Forbes, affluent consumers will continue to spend but spend differently than before and high-end brands have decisions to make.Â Top luxury brands have already begun and will continue to offer massive discounts unlike anything seen yet.
Luxury at a discount is everywhere and an oxymoron in itself. Luxury houses that make steep discounts are devaluating the high-end market sector overall, primarily because the "sale buyer" is different than the "high-end client." Thus to the "high-end client" or core customer base, the goods are worth less and lose exclusivity. Spoiled little girls walking around with once exclusive designer bags will only push core customers to look elsewhere. However, it's a blurry line between discounting too much versus not discounting at all.Â Upscale stores have to continue to turn profit or face bankruptcy. Does the designer house, luxury store lock in high prices, as Versace has promised to do; orÂ do they abandon the affluent client segment for the masses, in the hopes of turning profit now? It seems only time will tell the answer.Â One point has thus far been true, in 2009 exclusivity of goods and services will be paramount to the luxury consumer, as will value and loyalty.