What have luxury “discounters” done to value perceptions?

It’s going to be very hard to get the customer back in the mood to pay regular price for luxury goods, now that the gates have been opened. It’s one thing to “incentivize” your most loyal customers with occasional discounts or rewards programs; it’s another thing entirely to discount luxury goods at 70% off at the height of the season. I understand retailers’ need to drive traffic in the door (and inventory out of the door), but some of them have done long-term damage to the credibility of so-called “regular” prices. The damage done to the relationships between luxury retailers and their vendors (who are being asked in many cases to pick up the tab) could be even more damaging. It’s understandable that the luxury customer is going to ask why she was overpaying all these years in the first place.

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