Stacey Vanek Smith: It’s back to school shopping season and despite the weak economy, luxury retail has been doing well. And kids clothes are no exception.
From the Wealth and Poverty desk, Shereen Marisol Meraji reports.
Shereen Marisol Meraji: Gucci’s been designing kids’ clothes for two years now. So, I took a trip to its store on Rodeo Drive in Beverly Hills. Inside, the kids section was pretty small, just a few racks and shelves. A 6-year-old was trying on a pair of $200 sneakers before her first day of school. But it was the tiny, camel-colored, leather jacket with the $1,700 price tag that screamed “luxury!”
Marshal Cohen: The designer and upper-end market has grown from 3 percent of the total kids business, to what now will probably become 6 to 8 percent by the end of 2012.
Marshal Cohen is the chief retail analyst with NPD Group. He says Oscar de la Renta has a new kids’ line out this fall, and you can expect to see more high-end designers outfitting kids in the future. Cohen says it’s all about getting kids connected to luxury.
Cohen: And addicted to it, and as they grow older you create some kind of loyalty and long term customer relationships.
Gucci’s gateway drug: perhaps its $275 ice-grey, skinny jean for 6- to 12-year-old girls.
I’m Shereen Marisol Meraji for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.