In the fashion industry, the power of the halo effect has remained nearly unquestioned: Fashion brands introduce cutting-edge, daring looks during runway shows, attended by celebrities and influencers. Then these high-fashion options cascade down, encouraging everyday consumers to purchase more accessible products, simply to have some form of identification with the sophistication of the runway and the famous people who dare to wear the over-the-top styles. But according to Calvin Klein, the high fashion Collection that it has introduced each season actually has transformed into an unsustainable marketing expense that does not provide sufficient returns. Noting the growing casualness in apparel, the company has decided to shut down the Collection line completely, and it will not post any entries to upcoming fashion weeks. Instead, it identifies its denim offerings as its highest-end line. Rather than advertising in glossy fashion magazines with edgy models, it will pour more of its marketing budget into celebrity endorsements from popular stars like Kylie Jenner and Justin Beiber, who will model the latest jeans styles in mass market advertising channels. The change is a substantial one; Calvin Klein’s brand reputation has long relied on its association with glamorous gowns that might appear on red carpets. By establishing and maintaining a vision of sophistication and luxury, the company was able to convince regular consumers to pay extra to have the brand name embroidered on their jeans and underwear. It is gambling that they will continue to do so, even without a luxury link or the clear communication of the company’s vision of high fashion on the runway.

Source: Vanessa Friedman, The New York Times, March 7, 2019