Sunday, March 15, 2009

The Recession earns models 50% paycuts

Apparently, the recession is blazing it's trail through the world of high fashion as well. Fashion designers are taking hits which trickles down to fashion models having to take pay cuts even as much as 50%

A recent report from Reuters states:

"...But at the haute couture shows in Paris, the leggy blondes in silk dresses who advertise a life of luxury are finding their world turned inside out by the economic crisis.

"Half price! It's half-price everywhere, in Milan, even in New York," cried Anna Chyzh, a 23-year-old from Kiev who had just changed out of a Stephane Rolland haute couture gown into jeans and was headed to the next show."

"...Shunned by scrimping shoppers amid rising unemployment and fears of a long, deep recession, retailers across the board have cut profit forecasts and marketing budgets.

Even larger luxury goods groups are feeling the pain. Richemont, the Swiss firm behind Montblanc pens and Cartier watches, announced earlier this year it saw no signs of a recovery after third-quarter sales missed forecasts.

Magazine publishers from Conde Nast, which owns Vogue, to Time Inc are seeing advertising sales dive, and the New York Times has said it expects sales to deteriorate further.

At the January fashion shows in Paris and Milan, a prime advertising opportunity for luxury brands, designers hired fewer models than last year. Models and agents are feeling the pinch."

"...At Premier Model Management in London, an agency that has represented Claudia Schiffer, clients who used to pay a daily rate of 3,000 pounds ($4,200) are now arriving with a budget of 1,500 pounds, director Aidan Jean-Marie told Reuters.

To weather the crisis, agencies are adjusting their mix of so-called "commercial models", who attract a steady stream of low-key jobs such as catalogue shoots, and pricier "image models" who appear on catwalks and magazine covers."

"You need both sides to survive the downturn, but the balance shifts slightly towards the commercial models," said Jean-Marie. "The catwalk girls are not your day-to-day girls, they are anomalies, with measurements they had when they were 16 and still have at 18."

"Karen Diamond, director at Models 1, the agency of supermodel Agyness Deyn, expects the full impact of the crisis to hit later this year since advertising budgets and show schedules are planned far in advance."

"Clients will go with established models rather than giving new faces a break, and it'll be tough for new girls," she said..."

Source Reuters article '"Half-price" fashion models tighten their belts' By Sophie Hardach

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