"Our customers used to want a big shopping bag with our label on it to carry around after their purchase. But now, they just want a simple brown bag," pronounced Roxanne Paschall, Senior Director of Merchandising of Bottega Veneta.
"It's like they don't want to flaunt their wealth anymore," she said.
Last night, panelists discussed this phenomena and the broader issue of the survival of the luxury industry in the current economic times as part of Penn Fashion Week 2009. The conversation took place in Steinberg-Dietrich Hall and was moderated by Erin Armendinger, the Managing Director of the Jay H. Baker Retailing Initiative at Wharton.
Incorporating different luxury sectors such as fashion, cars, food and entertainment, the panel consisted of representatives from Rolls-Royce, Maserati, Bloomingdale's, the entertainment industry in New York City and Stephen Starr, owner of restaurants such as Pod and Tangerine.
Starr spoke about "managing perception" in determining the right price and catering to customers in today's financial crisis. He emphasized that it is important to "make the customers feel comfortable, without reminding them about the current state of the economy."
Accordingly, Starr said rather than lowering existing prices, he adds cheaper options to the menu.
Other panelists agreed, highlighting the integrity of brand image and the uniqueness of luxury goods.
Winnie Feng, a Wharton freshman, was drawn to the event due to her interest in fashion and work experience in retail. She commented that she could also relate her classes to the discussion.
Similarly, Wharton junior Erin Godines also found the discussion relevant to her studies in marketing and retail. She added that "the banter amongst each panelist and their uninhibited discussion was interesting."
The event drew a packed and varied audience. According to Wharton junior and one of the event organizers Susan Ho, the diverse composition of the panel attracted both males and females.
"I was fascinated by the speakers in the car industry, as most males here were," said Wharton sophomore Tyler Myerberg. "The speakers were impressive, and it was definitely worth my time."
Fashion Week is sponsored by Macy's, Inc. and BCBGeneration and organized by Dzine2Show, business fraternity Delta Sigma Pi and Wharton Retail Initiative.
