Yesterday’s post Luxury For Less caused me to think about the fashion industry and its outlook for the near future.  There will be many changes, but will they be permanent?  Can they last beyond the economic recovery?

A drop in prices will be the biggest change of all.  Lower prices will be favorable to the consumer, but it will chisel away at the bottom-line of many fashion designers.  It should come as no surprise that some designers are reluctant to lower prices, and understandably so.  We as a global community have enjoyed much luxury and excess for over a decade, and it was expected to stay that way forever.  Who knew?

The industry as a whole is in need of assistance, and our First Lady, Michelle Obama is doing her part.  Her fashion choices have been the subject of much discussion.  She wields an influence on fashion that is seldom matched.  Can her influence translate into an increase in sales?  That is the likely goal of both the First Lady and the designers who dress her.  Michelle Obama has made a concerted effort to wear clothing by American designers; this is her contribution to an industry that has seen better days.   

Lower prices were almost unheard of a decade ago.  Yet today it is an economic reality for some designers.  Others have decided to maintain their price points, a likely attempt to preserve their luster.  They are each taking calculated risks.  In time we will learn which of these strategies emerge victorious.   

Photos of Michelle Obama and her fashion choices abroad can be viewed at On the Runway.  On the Runway, by Cathy Horyn also has a related story on retail fashion and their current price points.