Tuesday, 3 February 2009

Credit Crunch- What Credit Crunch?

With the current economic climate, you would not expect smaller brands to be splashing out on models to appear in their ad campaigns would you? Clearly we've underestimated handbag brand, Coach who reportedly splashed out on a hefty $50,000 to bag Ali Michael to appear in their spring/summer 09 ad campaign. 

These last few months the credit crunch has had an obvious impact on the fashion industry. My fashion friend and I are already complaining about the few parties planned for fashion week this season, and lack thereof. For goodness sake, party God Marc Jacobs isn't even hosting any of his legendary after parties this season. Reportedly, he is cutting invites to his autumn/winter show by hundreds, despite hosting the show in the same location. When the credit crunch affects Marc Jacobs, you know there is a problem! Big brands like Versace and Prada have turned to the 'Supers' like Kate, Giselle and Linda to try and pull in those dollars as the luxury market takes a trip downwards.

Recent reports claim that LVMH are interested in acquiring the accessories brand.

If a $50,000 payout is not a statement to their competitors that te credit crunch is not hitting Coach, I don't know what is?


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