Answering one’s own question is possibly a sign of madness, but I have found a response to my question about what other products are hurting because of income elasticity.
Australian retailer of snazzy suits, shorts and ties Herringbone has collapsed in the past week. It seems fine clothing for merchant bankers, lawyers and the like is not quite as big a market as it was 12 months ago. Like champagne, consumers apparently find it very hard to justify such luxury as their income falls.
The search for further examples continues.
Tags: business, business failure, herringbone, income elasticity, luxury, luxury goods, retail, Strategic management
International BS Blog 
December 11, 2008 at 1:01 pm |
I love herringbone shirts and have a wardrobe full of ’em… but don’t buy them anymore as my entrepreneurial income is not nearly as great as my Global Market income was… hmmm