Bad economy hits fashion industry

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Versace announced Wednesday that it has decided to close all of its boutiques in Japan, saying that the stores no longer represent the brand image.

In a statement Wednesday the company said the closings are part of a grander plan and that the brand is looking for new locations. However, publications like the Wall Street Journal say the luxury market is beginning to lose its appeal.

I attribute this to how the bad economy is globally affecting the fashion industry. So far it has seemed that the high fashion portion of the industry has been spared, but these conspicuous closings tend to allude to the greater problem of a world-wide recession. What are your thoughts? I think if high fashion brands like Versace are experiencing lack of  interest, then that doesn’t bode well for the rest of us!