The impact of the financial meltdown on the luxury fashion goods Dissertation

The impact of the financial meltdown on the luxury fashion goods market - Dissertation Example Be the epicenter of a financial crisis in any country like the United States, but its effect is felt in the other nations as well, quite similarly to the manner in which the global economic crisis of 2008 impacted the industrial sectors of the United Kingdom (Naude, 2009, p.19). The worldwide economic crisis of 2008 disturbed the basics of the luxury fashion commodities industry globally. To ride out the outburst, the, industry players countered to new user demands and, in the course, redefined the industry of luxury. There have been considerable changes and challenges faced by the luxury goods companies. The research would also include the case of a handbag designer in Paris, France, named Philippe Rousseau, who worked hard to push his business all through the crisis period. (Lauder Global Business Insight Report, 2010, p.9). Thus the rationale for the research is to understand the impact of the global financial crisis on the luxury fashion goods industry and analyze the way forward to online selling, which has been introduced by several luxury goods organizations as a new means of attracting consumers, in the recovering face of a global financial meltdown. 2) Literature Review: By the end of 2007, the world had penetrated into a recession or a financial meltdown the origin of which were mortgage and credit crisis, thereby leading to unemployment. Consumer confidence got destabilized, and this caused a cutback in the spending habits of the customers. The economic strain and the indecisive future also created a comprehensive change in the fashion industry leading to joblessness, curtails in expenses, termination plans for growth and development, or at times bankruptcies and closure of the business (Taylor & Weerapana, 2009, p.782). The luxury sector started facing saturation in the market with thinning demand. Sales of high finish fashion goods were confronted by the consumers’ inclination to explore and evaluate prices, and find thorough information bef ore buying. Designers started looking at partnerships with mass traders. Retailers and designers, in hunt of fresh clientele, pleaded to global apprehensions such as communally and environmentally accountable developed practice. It was by the end of the twentieth century that the industry started recovering and finding new ways of establishing their businesses again (Welters & Lillethun, 2011, p.111). Owing to the financial crisis, the middle class as well as many wealthy customers have been hit. Even those affluent groups who have not been individually affected by the crisis are changing their buying manners, a way of representatively taking part in the nationwide attempt and exhibiting harmony. In fact, the luxury sector gets more affected than other sectors by the consumers’ spending less on the products (Kapfere & Bastien, 2009). Philippe Roucou who is a handbag designer in Paris, has worked very hard to overcome the period of financial crisis. He started working for desi gner Gabrielle Cadet who designed hats and handbags, in 1988 and gradually became passionate for accessories  (philipperoucou, n.d.). His own business at present sells about 1500 handbags internationally per year. He is also involved in certain other businesses like a studio of his own. (Lauder Global Business Insight Report, 2010, p.9). In today’s world as a means of attracting more consumers, the fashion goods companies are coming up with online selling facilities for their customers (Caroll &