Cheap Chic: The New Trend for Fashion Designers

Not surprisingly, in this economy almost everyone is out to find a great deal. It is no different in the world of high fashion, which is causing a major transition in which many designers such as Vera Wang, Karl Lagerfield, and Proenza Schouler, just to name a few, are designing for low budget stores like Kohl’s, Target, and H&M. Several of these designers are using their names on clothing lines at a price point well below that of their original high-end fashions. This fairly recent phenomenon has made “cheap chic” clothes and accessories a major trend in the fashion industry. Although it may seem risky for exclusively high-end designers to put their well recognized brand on low-budget lines in fear of becoming de-valued by their high-brow customers, it is also extremely lucrative, and if done correctly, can be avoided. During a time when Sharon Stone paired a Gap turtleneck with a Valentino skirt for the 1996 Academy Awards it seems only natural to blend high fashion with more cost effective clothing. Both designers and low-end stores alike have taken notice and created contracts to capitalize on this modern trend. The newest joint venture, announced this week, is between Target and Alexander McQueen, a prominent designer in the fashion world. Previews of the new line (seen above) emerged this week to great reviews. However, some disagree with this new trend thinking it will only harm the prestige of exclusive designers such as McQueen. Although there is some risk in hurting the their established brands, if done correctly, they are able to produce cheap chic clothes, collect huge revenue, tap into a new market, and over-all have no damage to their high-end line. In order for Alexander McQueen to be successful in this venture with Target, as many have been before him, there are a few things he should be keeping in mind to thrive in both the cheap chic and high fashion worlds.

Although these deals have become very popular and have extended beyond clothes into things such as accessories and home furnishing it is important, as stated above, that they are done correctly. There are a few things to keep in mind when creating a cheap-chic line. For example, designers should have a restricted time limit if they want to keep their original brand untarnished. By having a limited-time offer it creates exclusivity, much the same as price creates exclusivity for their high fashion line. It has been a mistake for designers such as Isaac Mizrahi, who lingered in the low budget world and whose name is now synonymous with Target. Lazaro Hernandez, one of the two designers of Proenza Schouler, made his voice heard on the issue stating that long-term deals between designers and Target can ruin a designer’s name eternally. When speaking of Mizrahi, he went on to say, “When you're there for the long haul, why is anyone going to go to Barneys and buy your clothes when they can get it at Target all the time?” Mizrahi, whose contract with Target ended this year, is now headed to Liz Claiborne in hopes of another successful cheap-chic venture. However, in doing so, it seems highly unlikely that Isaac Mizrahi’s name will ever again equate so synonymously with high fashion after such long stints in lower budget companies. Other mistakes designers have made when undertaking the cheap chic route is not differentiating between their low-end brand and their high fashion merchandise. Differentiation is important so the original customers who are willing to pay big bucks for designer couture are not alienated. After all, why would someone buy the original when it is replicated for a fraction of the cost? This can undermine the designer’s high income consumer. For example, in a blog about Target’s cheap chic lines it states Hayden Harnett created a fifty dollar bag for Target which looked identical to its original, which retails for $198.00. This not only infuriated customers who purchased the expensive bag, but also taints the reputation of the expensive label. Designers who have been most successful keep their cheap line separate from their expensive line by having two completely different stylings, while still stamping their name on both. Proenza Schouler for Target does this by creating entirely dissimilar day wear lines as to “not to turn off those who prefer their Proenza Schouler at Bergdorf.” This is an important distinction in creating a cheap chic line.

If these things are done correctly, especially during the recession, the capital gain for both the stores and the designers are astronomical, all without damaging the original high-end brand. Today more than ever consumers are looking for a bargain and celebrated creators such as Alexander McQueen (pictured right), with his new line named McQ Alexander McQueen for Target, are delivering. The line will launch starting March 4th of this year as the first line in Target’s new project titled Designer Collaborations. This new plan takes prestigious designers and allows them to create an accessible, affordable line for the masses. Most of the pieces for Target are under $100, which is consistent with other designers who create lines for stores in the same price range. So far, it has been a recipe for success. For H&M designer name lines such as Karl Lagerfeld, Stella McCartney, and Roberto Cavalli have sometimes sold out in mere hours, not even lasting in the store for a whole day. As for Target’s recent successes, their Go International program, similar to their newly introduced Designer Collaborations, takes the up-and-comings in the industry, which have included Proenza Schouler, Luella Bartley, and many others and makes over $100 million annually with their limited time offers. It is clear these partnerships are both giving consumers on a budget what they want while simultaneously creating huge revenue for the designer and the store. Not only are these partnerships establishing a new market by enabling price conscious consumers a taste of designer fashion, they are opening up an eventual new market for their high-end lines. The targeted consumer for exclusive high-priced brands is much different than that of the customers of Kohl’s, Target, and H&M. Where the latter consumers are very price conscious and unwilling to spend a lot of money on clothes, the target markets of haute couture have little to no price sensitivity. However, this does not mean that will not change. The cheap chic lines of designers such as McQueen, Lagerfeld, Wang, and others generally target twenty-somethings with modest discretionary income. However, as Anne Metz states while speaking of Target, “… the primary demographic of the GO International line (young, twenty-to-thirty-somethings) will get older, and they'll also get richer. If you tempt them with Target, eventually they'll follow you to Barneys.” The earlier a designer can make a fan of his or her work, even at the low-budget level, the more likely that person will be to continue to purchase the designers clothes when they have the means to afford it. While it is true that some consumers will be content to stay on the cheap chic path, others will certainly be drawn up the price ladder as their income becomes more excessive.

Though some consumers, usually those who are not intended for the cheap chic demographic, are hesitant in supporting high-end designers going the low-budget route it seems clear that if handled well this route can only be positive. Although there have been some designers, such as Isaac Mizrahi, who will most likely be unable to transition back into the high fashion world, most have become more successful and better known due to their lower budget, yet still chic designs. There is no reason to think McQ Alexander McQueen for Target will be any less successful than the designers before him, or any more likely to come out with a tarnished reputation. Nevertheless, in order to follow the successes it is important he follow the formula. Keep the low-end line limited in time and design, and differentiate between the McQ for Target and his original Alexander McQueen line, for which he is known and loved. As for his decision to become the newest designer to take on the low-budget trend, most fashionistas could not be more excited for March 4th to hit so they can snag Alexander McQueen at Target prices.