Is the ‘masstige’ market recession-proof?

Isaac Mostovicz writes that the 'masstige' market's rebound could be helped by Theta personalities looking for long-lasting quality items...

hermes

A major casualty of the global recession has been the luxury industry. Sales are down across the board and those who are buying luxury goods are buying far fewer goods than before.

Many companies are rethinking their business strategies, i.e. Gianni Versace SpA closing its Japanese stores, which I’ve previously written about.

But the doom-and-gloom of the luxury market seems not to have trickled down to the ‘masstige’ — mass-market luxury — market.

Though not officially a “masstige” brand — and the brand outright rejects it — Hermes has done well for itself in the recession. Its bags have reached mass-market, and against the backdrop of a global recession, the company has begun crafting expansion plans. Luxist reports:

The Financial Times recently talked with Patrick Thomas the CEO of the luxury brand who has said the brand has held off on expanding as fast as they could because they don’t want to squander the legacy of the company’s history. Thomas refers to it as a “capital sin” to use the image of the company to try and make short term money.

The ‘masstige’ market is tailored to Theta personalities. Even in a recession, where resources are strained, they will seek out quality items. Though the focus on quality will be more to do with the comfort of knowing the item will last for a long time.

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