Retailers suffered over the last year and luxury brands were no exception. Coming out of the recession, these high-end retailers are embracing change, or what this morning's session at the National Retail Federation's 99th Annual Conference and Exposition deemed, "The New Luxury Paradigm." Perhaps the most significant change is the increased adoption of social media, marked by an imperative to connect with consumers on a personal level. Speakers on the panel included founder and creative director of luxury brand of the same name, Tory Burch, Marc Gobe, president of brand consultancy Emotional Branding, and Steve Sadove, chairman and chief executive officer of Saks.
 
Like the rest of the retail market, the luxury space has been on the defensive, Sadove described, and is now slowly trying to figure out how to go back on the offensive when it comes to getting customers to start spending again. Value continues to play a key role regardless of what purchases are being made and in the luxury space, "value" often goes beyond price to embody quality and design. "Consumers want luxury products because it isn't widely available," Sadove said. "That's what makes luxury special." The goal, then, is to achieve a balance between value and exclusivity, a challenge Saks, for instance, has tried to tackle by ensuring that 20 to 30 percent of the items it carries can't be found elsewhere. Nevertheless, while Saks used to keep an evenly distributed portion of good, better, best items, the company has seen many of its top-tiered brands shift more of its inventory toward the good and better zone.
 
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