blog

A new book called Deluxe: How Luxury Lost its Luster by fashion writer Dana Thomas seems quite interesting as a piece of historical and social commentary, but more than a bit shallow and naive in terms of economics and human behavior.

Thomas seems to bemoan the fact that once great luxury brands that stood apart because of craftsmanship are now commanding luxury prices largely on the basis of status, since overall product quality in the fashion space has declined substantially in her view.Thomas seems to long for the good old days when only the rich could afford certain things, making it clear who was in the upper caste. And who wasn’t. Of course, it’s still very true that only the rich can afford certain things, but our robust economy has created a middle class with a lot of spending power, or more to the point: with the means to cut corners in one area in order to trade up in another. (Just as Thomas herself finds a couple loading shopping bags from an outlet store into a $380,000 car.)

Thomas seems to ignore the tremendous psychic gratification one can gain by aligning him- or herself with a particular brand–”badging” as some call it. How does one put a value on that? It’s simple: It’s whatever someone is willing to pay for it, regardless of how ridiculous you or I may think that is. (I have a $600 luxury fishing pole; I know at least one person who thinks that’s crazy.) Thomas suggests that some companies are making obscene profits while their products leave lots to be desired in terms of quality. In her view, this is something of a crime. I’m no advocate for shoddy products at high prices, of course. But I am a fan of the free market. Unacceptable quality will eventually catch up with any brand, I believe, but even faster with those who play in the luxury space. Poor quality is an open door for competitors to stroll right in. (As a quick aside for those in the Eastern United States, think about what Ron Trzcinski of The Original Mattress Factory has done to shed light on the poor craftsmanship and high costs of the bedding industry.)

All that said, if someone wants to pay, say, $1,000 for a “designer” garbage bag that a woman wears as a dress as a means of making a statement about herself and her place in the world, then I say that’s a win-win situation for both the dressmaker and the dress wearer.