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Do Designers Get a Bailout Too?

Banks. Car manufacturers. Insurance companies. Almost every industry is feeling the effects of the economic collapse. The major fashion designers are no exception.

A quick look at the steep decline in stock prices over the past year reflects just that. Major designers like Polo, Kenneth Cole, and retail establishments like Saks have all taken significant cuts in share price. The market is also prohibiting further growth as exhibited by the recent postponement of Prada’s plan to take the company public.

Percentage decrease in stockprice 2007-2008
Bombs Away

Opening a designer up to public investments leads to a huge infusion of cash and assets. The cash can be used to hire new talent, increase distribution, and diversify. But Prada has delayed this three times so far, citing poor market conditions.

So what’s next? With the majors reducing output and becoming more risk adverse, there could be an emerging market for new creative and low cost designs. Layoffs could free in-house designers to spread their wings and establish new lines. Although it would be difficult to raise enough capital to become a national brand right away, we could see local designers taking advantage of the opportunity to deliver even more innovative designs.

What do you think will be the next big trend in fashion, considering the effect of the economy? Share it with us in the comments.

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Do Designers Get a Bailout Too? | www.thesexymodel.com said,

December 19, 2008 @ 8:52 pm

[…] Everything Else, Fashion Banks. Car manufacturers. Insurance companies. View post:  Do Designers Get a Bailout Too? Post a […]

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FashionistaTV.com » Coach Set to Lower Retail Prices said,

January 22, 2009 @ 12:49 am

[…] Previously, we mentioned the downturn in Coach’s stock price, and today they announced they will lower prices by 15% in 2010. Although the company still made a profit (which is more than we can say for many (ok, most) retailers), Coach announced plans to only open 20 new stores this year, down from original plans to open 40. Related PostsDo Designers Get a Bailout Too?Banks. Car manufacturers. Insurance companies. Almost every industry is feeling the effects of the …Retail Fashion Fonts You Can Use All brands have an identity. It’s these identities that provide familiarity with a product, ins…Popularity: unranked [?] […]

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Yellow said,

June 9, 2009 @ 1:30 am

When it comes to the big things in fashion I think the whole do it yourself trend is what is what will be big when we are in our economic lows. I think more people will be paying less for their top designer outfits and altering them to fit the new styles; bleached jeans, ripped jeans, studs, and so forth are all easy things that anyone can do and shouldn’t be scared to try it for them selves. From personal experience, I enjoy making my minor detail my self and getting that satisfaction when I hear “Oh that’s cute, where did you get it at” and being able to say that I made it is truly a joy amongst joys.

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xulinguo said,

March 26, 2011 @ 6:47 am

As the saying goes, is the first step. The first step in the most difficult step. Many people would like to develop a very comprehensive plan, to consider carefully all the circumstances. They all possible future problems are to find out, and then their brains to find ways to solve the problem. However, to solve a problem, there are other problems arising. Things become more complicated in the end, they have not denied their actions on their own, the problem was overwhelmed. It would appear that actually beat them is not happening, this is not it funny?

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