NYU junior Mary Williamson hasn’t been to Fifth Avenue’s Henri Bendel, where the girls at the headband counter used to greet her by name, all semester. Though she no longer hands over $150 for a Jennifer Behr headband, visions of the pricey accessories run through her head.

Williamson has limited her food purchases, walked the mile and a half to class instead of taking the subway, and skipped going out to bars and clubs in order to save up for her beloved Lululemon yoga pants and a new pair of designer jeans.

She, and other Gen Y women have grown up on brands just as they came of age with Nick at Nite, Beanie Babies, and slap bracelets. They sought out designer buy goods as early as middle school, first with $150 Kate Spade bags, soon after with $80 Juicy sweatpants and finally with $160 designer jeans. Over the years, Gen Y has become hyperaware of designer labels.

Although the recession has hurt premium apparel brands, they continue to find favor among fashion-conscious, Gen Y women who, so long as companies tailor their marketing strategies appropriately, are buying into affordable luxury. Read the rest of this entry »