How far are designers willing to go to make sure you pay full price?

• Clothing designers and department stores are facing a growing conflict as the economy continues to suffer: Who controls pricing?
• Luxury brands are unhappy that department stores have the power to slash prices on their products, undercutting their luxury images and raising questions about how much a $1200 Piazza Sempione dress is really worth.
• Some designers are following the strategy adopted by major airlines when low-cost websites began buying tickets in bulk and slashing their prices – limiting inventory.

Facts & Figures

• More than 40 designers requested that their products be left out of a recent Saks “Friends & Family” sale.
• In a step away from department store control of her product, Eileen Fisher is building 6 new stand-alone stores this year.
• LVMH, which maintains tight control of its brand and pricing by renting boutique space inside department stores, posted a 10% profit in the fourth quarter of 2008.

Best Quote

“Even wealthy people don’t want to be ripped off.”  – Eileen Fisher, Designer