Thanks to Chris at Listitcafe for the use of her photo.

Rumor has it that we in the US are in a recession.  Food and gas are up, wages are stagnant, and most businesses are feeling the pinch.  It's commonly thought that luxury brands are recession-proof because they do not depend on those hurt most by recession - the average guy.  I read today that Louis Vuitton is in fine shape.

But the latest news is not good for at least one "luxury" brand - Gucci.  According to reports, Gucci's US sales have slipped.  This is explained in part by who the typical US Gucci customer is:  an urban career woman who earns in the low 6 figures.  This is a woman who, in boom times, can spend $2000 on a handbag, but when things get tight, they must scale back.

So Gucci has a plan:  If their typical customer can't swing a $2000 bag, she can surely afford a $900 one.  So the plan is to shift focus from their most expensive leather bags, to cheaper canvas totes.  The change will first be seen in Gucci advertising, and according to one report, new, and cheaper, canvas lines will then be developed.

What's really puzzling about this is that Gucci tried this in the 1980s, with less-than-desirable results.  In 1979 Aldo established the Gucci Accessories Collection, in an attempt to funnel more profits into his branch of the Gucci family.  The GAC was distributed along with Gucci perfumes, and the canvas items were widely marketed in the US.  The idea was to make Gucci available to a larger range of shoppers, but the end result was that the brand name was cheapened.  By 1989 Gucci products (including such items as ballpoint pens and cigarette lighters) were available in more than 1000 stores in the US.  So much for exclusiveness!

Not only that, but Gucci lost their "edge."  They continued to produce high quality leather goods, and they also made expensive but conservative clothing.  It was not until after 1990, when Tom Ford was hired to design the collections, that Gucci regained their place as a fashion leader.

It may be that the decision-makers at Gucci need a reminder of the company's history.  I suggest they read Sara Gay Forden's book, The House of Gucci: A Sensational Story of Murder, Madness, Glamour and Greed.

This 1980s bag is typical of what Gucci produced during that decade.

In the 1980s, Gucci made expensive but conservation silk and leather clothing.  Thanks to Carrie at Glad Rags and Curios for the use of her photo.