Lisa Blair, a 39-year-old cosmetics executive, bought a Dolce & Gabbana handbag for $2,450 late last year. The most expensive bag she has bought in recent months is a $695 Botkier.
“I’m looking for those exceptional things that are more affordable but still luxurious,” said the New Yorker, who’s motivated to cut back by the economic uncertainty.
The high-end consumer’s mood has changed, said Robert Burke, founder of the consulting firm Robert Burke Associates in New York. Before, luxury shopping often was about paying anything for status symbols. Now the search is on for “value,” he said, partly because “it’s not chic to be spending money.”
Bloomberg News asked Blair and another avid shopper, advertising executive Jose Bandujo, to figure out how to pay less for luxury. The two searched for cheaper alternatives to items that Burke chose — eight for women, another eight for men.
By surfing the Internet and picking brands like J. Crew, Shoshanna and Levi Strauss, Blair and Bandujo shaved their full- price tabs to $4,016 from $12,120, and to $2,314.50 from $16,097, respectively, without feeling they had overcompromised on cachet or quality. Excluding the big swing factor of replacing an $8,375 Rolex watch with a $275 ToyWatch, Bandujo still reduced his total by three-fourths.
“It was pretty easy,” said Blair. “There is always going to be that person who buys an Hermes Birkin bag, and there is not really a replacement for that. But if you are aiming to spend less money, there is absolute value out there, and you can get well-made pieces.”
Deep Discounts
The wealthy have become “resistant to spending ten times more for items only three times better,” said Pam Danziger, president of the research firm Unity Marketing in Stevens, Pennsylvania, which regularly surveys affluent consumers.
The deep discounts luxury retailers offered over the holiday season — and that are now kicking in on spring merchandise — made Bandujo question more the original prices of their goods, which had gotten “way out of line,” said the 45- year-old founder of ad-agency Bandujo.
Among the items he selected was a pair of $175 Banana Republic Oxfords, to replace the $520 Salvatore Ferragamo lace- ups picked by Burke.
“Shoes get so beat-up walking the streets of New York City that although beautiful, it’s hard to justify pricey ones like the Ferragamos,” Bandujo said. With his choice, he can just about get three pairs for the price of one, he said.
‘Nice Things’
Blair’s substitute for a $995 Michael Kors day dress was one from Milly at $490.
“I am still into nice things,” Blair said. “You don’t have to go and buy disposable junk. A bargain doesn’t necessarily mean it’s value.”
Bandujo decided to swap out Burke’s pick of an $160 Hermes bunny tie with a cheeky $110 Psycho Bunny version, and $198 five-pocket 7 For All Mankind jeans with slim straight 514 Levi’s, which are priced $58 to $69.50. He called the ToyWatch he swapped for the Rolex “the anti-luxury statement in a luxury-obsessed culture.”
The new attitude is a big switch from the conspicuous consumption of recent years, Burke said.
“People were focused on status, and many labels for them gave them instant credibility, and they were willing to pay whatever it took to have them,” he said. “The world crisis has had a real sobering effect that has created a new, more discriminating luxury consumer. What will be long-lasting is the customer’s scrutiny of price and value.”
Cutting Prices
Luxury-goods makers and retailers, including Saks Fifth Avenue, Neiman Marcus, Coach and design house Badgley Mischka have taken note of the change, and have said they are working to layer in more offerings at lower prices.
Categories in which it’s already easy to cut back spending are basics like T-shirts; underpinnings like camisoles; sweaters; cotton dresses; less-tailored clothing and denim, Burke said. Blair recommends young-and-upcoming designers like twins Mary-Kate and Ashley Olsen, who created the label The Row.
Bandujo, meanwhile, reports that he rushed out to buy the Levi’s he found on the Web.
“I don’t see any reason to spend $200 to $300 on jeans when you’ve got a choice like this,” he said.
Here are Burke’s challenges for men and women followed by Bandujo and Blair’s alternatives:
Men Shirt: Turnbull & Asser, lilac bar-striped classic shirt, $260; Brass Bones of London purple line-striped shirt, 55 pounds ($78).
Tie: Hermes pale-green tie with hopping rabbits, $170; Psycho Bunny large Soldiers teal-and-pink tie, $110.
Suit: Ermenegildo Zegna gray wool pinstriped suit, $2,195; J. Crew year-round pinstriped Aldridge three-button suit, $583.
Blazer: Paul Stuart navy blazer, $884; J. Crew three-button Legacy blazer, $298.
Jeans: 7 For All Mankind five-pocket jeans, $198; Levi’s slim straight 514 jeans, $58 to $69.50.
Shoes: Salvatore Ferragamo Newland black lace-ups, $520; Banana Republic Jackson cap-toe Oxford, $175.
Leather Jacket: Ralph Lauren Purple Label brown leather racer jacket, $3,495; William Rast brown leather jacket, $726.
Watch: Rolex steel-and-gold Oyster Perpetual Date watch, $8,375; ToyWatch blue mother-of-pearl Chrono Collection watch, $275.
Women Day Dress: Michael Kors black cotton zipper dress, $995; Milly black cotton funnel-neck shift dress, $490.
Cocktail Dress: Badgley Mischka Platinum Label one-shoulder chiffon dress, $695; Shoshanna magenta strapless ruche silk dress, $415.
Jacket: Chanel black-and-white tweed with zippers, $5,410, at Saks Fifth Avenue; The Row Gibson black jacket, $1,550.
Shoes: Christian Louboutin Madame Claude d’Orsay red patent pumps, $795; Claudia Ciuti Lina stone pumps, $395.
Handbag: Gucci Hysteria black patent medium top-handle bag, $1,895; Botkier black contrast woven satchel, $595.
Jewelry: David Yurman Cable Collection peace symbol necklace, $950. Alexis Bittar Channing small pendant, $180.
Trench Coat: Burberry double-breasted trench coat, $1,050; Laundry by Shelli Segal double-breasted navy trench coat $203.
Jeans: Rock & Republic Stella 54R straight jeans, $330; J Brand 212 Bardot indigo jeans, $188.
