Susan Lyne’s Digital Makeover

Do you buy the notion of "luxury shame"—that even people who can afford the sky-high prices of luxury are ashamed to make such purchases in this recession? Do you think that, given the deep discounting by high-end retailers like Saks, the days of outrageous prices for fashion are over?
No. I think that people think twice about whether something is genuinely worth what they are being charged. That's different. I think they are still spending money on things they think are worth the price. I think where they are thinking twice is that not everything that they are being charged $2,000 or $3,000 or $6,000 or $7,000 for is worth it. They are shopping more in other venues, and they are shopping in their closets and adding what they need.

Is this a permanent consumer behavioral change?
Never say never. It is definitely is something that I think will have a lasting impact. I think every retailer or designer is thinking about: how do I deliver products at a more affordable price point? Not all of them. But definitely an awful lot are recognizing that there are price points where someone says, "I'm not going there." I think it benefits Gilt. I think it benefits a lot of different companies. Clearly it benefits a company like J. Crew when you've got Michelle Obama mixing Jason Woo with good J. Crew. That sends a message to everybody else that I'm going to shop high-low, too. That's been a consistent theme I think for years now. I think that it's a fiercer belief at this point. And I think it will continue. One of the benefits of this period is that people are recognizing there are brands out there that do make very high-quality goods for far less money than they would be spending for some designer brands.

Is that a term of art: high-low?
Yes. You don't read fashion magazines, do you?

What was your last Gilt purchase?
A Vera Wang dress, a great dress that I wore to the Public Theater benefit last week. And a good friend of mine came up to me and said, "I have that dress." But she'd bought it at Bergdorf [Goodman]. But I wear a lot of Gilt. This is an unusual day. I don't have Gilt on. It's been very good for my clothes budget.

Do you have an inside track?
No. No. No. Nobody here can buy before the online sales.

© 2009