In a fantastically blunt and matter of fact Karl Lagerfeld style of direct delivery to questions asked by a BBC journalist in an interview yesterday, Karl said he believed The economic downturn was needed, he says, it had gone too far. "I see it like a cleaning up - it was too rotten anyway - so it had to be cleaned up...I see it like a healthy thing - horrible but healthy, like some miracle treatment of the world." ... "People have different kinds of dreams. After all, people need a handbag, there are cheaper handbags. But if you can buy a beautiful one and if that's your dream to buy, why not?"
As luxury is often about exclusivity, uniqueness and rarity it is important for luxury brands to return to their original 'raison d'etre' and divest of some of the products that were a little removed from the core origins. In robust economic times a brand name can more easily diversify or introduce new products or line extensions as there are many more people with disposable income purchasing anything with a particular 'brand name' on it. However when the markets are squeezed it is important to ensure strong foundations exist, the core products representing the heritage and origins of the brand. After all luxury continues to be relevant when it is aspirational and if it has moved too far away it risks losing the security it once had.