$1,000 for a pair of jeans?
With the US economy slowing, many consumers are locking up their wallets. But others are spending freely -- some call it 'investing' -- in premium denim.
Since when did $200 become cheap for a pair of jeans? Since high-end denim became the belle of the retail ball.
The high-end-jeans industry is on fire. Sales of premium jeans jumped 20% on a unit basis in the first quarter of 2008, according to NPD Fashionworld's AccuPanel data, while sales of less expensive jeans rose only 4% in the same period.
"The denim business is still one of the few shining stars in a tough economy," NPD Group retail analyst Marshal Cohen said.
The high price of looking good
Long gone are the days when $1.25 could buy you a pair of Levi's, the price back in 1873, when Levi Strauss first sold his jeans. These days, a pair of designer jeans can cost up to $1,000. In case you don't have your calculator, that's a 79,900% surge from the good old days of Mr. Strauss.
Encrusted, embellished and bejeweled can cost you even more.
Take for instance, Roberto Cavalli's bejeweled jeans, a celeb favorite: They'll dent your wallet by $1,445.
And that's nothing compared with a pair from Dolce & Gabbana. Those could run you $3,950. And if you really want to shoot the moon, a pair of Escada Couture jeans encrusted with Swarovski crystals cost $10,000. By the way, Swarovski more or less equates to Baccarat; both are Madison Avenue names.
The most expensive jeans on record are a pair of vintage Levi's that sold for $60,000 on eBay on June 15, 2005, according to Guinness World Records.
Designers such as Rock & Republic and 7 For All Mankind typically sell jeans in the $200 to $300 price range, but the companies have überhigh-end styles that cost $700 and $1,000, respectively. Even Levi Strauss' high-end Capital E jeans can go for as much as $501.
And for those who want something unique, Earnest Sewn offers custom-made jeans for $660 to $1,100.
Even Earnest Sewn's noncustomized jeans are made one at a time -- no mass production -- with one person hand-stitching a pair from beginning to end. That kind of detail will cost you about $200 a pair.
"I've seen jeans at $790 a pair, and there is no question: People will buy them. After seeing prices that high, the $200 or $300 pair seems cheap," NPD Group's Cohen said.
What consumer slowdown?
Denim has been helping hold up the fashion business, Cohen noted.
"Even in tough economic times, the consumer is not running away," he said. "Consumers call it an investment. The quest for the perfect pair is always what justifies going out and buying another pair."
Jeans experts like to talk about denim as an investment.
"Jeans are the only thing people wear these days, so they're still something that people can invest in," said Sharon Graubard of trend research and consulting firm ESP Trendlab. "They make you feel great, and they last forever."
There has been a shift in consumers' thinking about high-end jeans, Cohen said. High-end denim has become a necessity for some, he said.
And Graubard said price "doesn't seem to matter" when a consumer finds a good pair of jeans.
Growing strong
This is big business.
"The denim business represents 10% of the total apparel business," Cohen said. "Ten years ago, it was only about 7% of the business. Keep in mind: It's a $200 billion business."
Though the high-end-jeans market made up only 3% of all the jeans sold in the first quarter of 2008, the market is growing at a double-digit pace, much faster than the market for less expensive jeans. Purchases of jeans costing $75 or more jumped 24% on a dollar basis from the same period last year, according to NPD Fashionworld's AccuPanel data. Purchases of jeans that cost less than $75 were up only 2%.
Why do we care?
Well, the average woman owns eight pairs of jeans, according to Cotton Inc.'s Lifestyle Monitor research. Even if only half of those pairs are higher-end styles, that's about $800 worth of denim in the closet. And a lot of revenue for jeans retailers.
With the US economy slowing, many consumers are locking up their wallets. But others are spending freely -- some call it 'investing' -- in premium denim.
Since when did $200 become cheap for a pair of jeans? Since high-end denim became the belle of the retail ball.
The high-end-jeans industry is on fire. Sales of premium jeans jumped 20% on a unit basis in the first quarter of 2008, according to NPD Fashionworld's AccuPanel data, while sales of less expensive jeans rose only 4% in the same period.
"The denim business is still one of the few shining stars in a tough economy," NPD Group retail analyst Marshal Cohen said.
The high price of looking good
Long gone are the days when $1.25 could buy you a pair of Levi's, the price back in 1873, when Levi Strauss first sold his jeans. These days, a pair of designer jeans can cost up to $1,000. In case you don't have your calculator, that's a 79,900% surge from the good old days of Mr. Strauss.
Encrusted, embellished and bejeweled can cost you even more.
Take for instance, Roberto Cavalli's bejeweled jeans, a celeb favorite: They'll dent your wallet by $1,445.
And that's nothing compared with a pair from Dolce & Gabbana. Those could run you $3,950. And if you really want to shoot the moon, a pair of Escada Couture jeans encrusted with Swarovski crystals cost $10,000. By the way, Swarovski more or less equates to Baccarat; both are Madison Avenue names.
The most expensive jeans on record are a pair of vintage Levi's that sold for $60,000 on eBay on June 15, 2005, according to Guinness World Records.
Designers such as Rock & Republic and 7 For All Mankind typically sell jeans in the $200 to $300 price range, but the companies have überhigh-end styles that cost $700 and $1,000, respectively. Even Levi Strauss' high-end Capital E jeans can go for as much as $501.
And for those who want something unique, Earnest Sewn offers custom-made jeans for $660 to $1,100.
Even Earnest Sewn's noncustomized jeans are made one at a time -- no mass production -- with one person hand-stitching a pair from beginning to end. That kind of detail will cost you about $200 a pair.
"I've seen jeans at $790 a pair, and there is no question: People will buy them. After seeing prices that high, the $200 or $300 pair seems cheap," NPD Group's Cohen said.
What consumer slowdown?
Denim has been helping hold up the fashion business, Cohen noted.
"Even in tough economic times, the consumer is not running away," he said. "Consumers call it an investment. The quest for the perfect pair is always what justifies going out and buying another pair."
Jeans experts like to talk about denim as an investment.
"Jeans are the only thing people wear these days, so they're still something that people can invest in," said Sharon Graubard of trend research and consulting firm ESP Trendlab. "They make you feel great, and they last forever."
There has been a shift in consumers' thinking about high-end jeans, Cohen said. High-end denim has become a necessity for some, he said.
And Graubard said price "doesn't seem to matter" when a consumer finds a good pair of jeans.
Growing strong
This is big business.
"The denim business represents 10% of the total apparel business," Cohen said. "Ten years ago, it was only about 7% of the business. Keep in mind: It's a $200 billion business."
Though the high-end-jeans market made up only 3% of all the jeans sold in the first quarter of 2008, the market is growing at a double-digit pace, much faster than the market for less expensive jeans. Purchases of jeans costing $75 or more jumped 24% on a dollar basis from the same period last year, according to NPD Fashionworld's AccuPanel data. Purchases of jeans that cost less than $75 were up only 2%.
Why do we care?
Well, the average woman owns eight pairs of jeans, according to Cotton Inc.'s Lifestyle Monitor research. Even if only half of those pairs are higher-end styles, that's about $800 worth of denim in the closet. And a lot of revenue for jeans retailers.
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