Retail reality check forces stores to redefine ‘luxury’

Luxury no longer has a four-figure (or more) price tag, according to David Jones.

As it prepares to launch its spring 2019 range, the department store is aggressively marketing a new breed of accessories brands specialising in "accessible luxury", with the "sub-$1000" handbag at the centre of the push.

Models Dilone (left) and Victoria Lee showcase some of the ‘accessible luxury’ brands launching at David Jones.Credit:Cole Bennetts

Bridget Veals, David Jones' general manager of womenswear and accessories, said "advanced contemporary" brands such as Boyy and Danse Lante were filling an increasingly important gap between mass-market brands and the traditional luxury houses.

"We're going to keep growing that part of our business. That's been so successful because you feel like you're buying luxury but it's much more affordable," Ms Veals said. "We've seen that [customer] want to pay sub-$1000 but definitely want the new 'it' bag."

At the mass end of the spectrum, The Way, the "fast accessories" label by former Harper's Bazaar editor Kellie Hush, is also new to David Jones this season.

The "digital-first" brand launched online eight weeks ago with everything $100 or less. There are plans to launch standalone stores later this year but Hush said selling through a department store helped to build credibility and reach new audiences.

"When you’ve worked in a rarefied world like I have you can lose sight of who the mainstream consumer is," she said.

Although Hush spent the past six years editing one of the country's most influential glossy fashion magazines, she acknowledged it wasn't where most of Australia spent their money.

"I didn't feel like [the market] needed another [luxury] brand by Kellie Hush in there," she said. "They were missing something accessible – I didn't come from a world where my mum had Chanel and Louis Vuitton bags."

Ms Veals said taking on The Way was about taking on a brand with a luxury taste level at an inclusive budget.

"I don't think price is always the factor. Everybody's always done 'high low' but it's probably been the other way around … investing in a luxury bag with an affordable dress," she said.

Ms Veals said that there is huge growth potential among customers, particularly professional women, who "want to look good but don't necessarily want to buy into luxury between $2500 and $10,000. This offers amazing fabrics, construction and fashion around the $1000 mark."

On Thursday, David Jones will preview its spring trends for media, ahead of a party for 1000 customers to unveil the $400-million redevelopment of its Sydney flagship on September 4.

Ms Veals said the store's shoe floor, which launched late last year, was "overperforming" ahead of the company's expectations.

This week, analysts repeated their warning of the demise of department stores, following a $437-million writedown in the value of David Jones by its parent company, South African-based Woolworths Holdings.

The reporter travelled as a guest of David Jones.

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