It was the best of times, it was the worst of times, as the years sandwiched between the dot-com boom and the late 00’s ushered in an unprecedented ballooning and democratization of luxury. The base price for  “It” handbags (and now shoes) rose to over a grand, fashion houses long past were resurrected with new talent (a low point being Lindsay Lohan’s short-lived appointment at Ungaro), and brands expanded into ever far-flung categories.

Meanwhile, a backlash to this state of affairs was emerging. “Slow fashion,” a cousin to its more well known kin slow food, embraced like-minded principles such as locally sourced materials and manufacturing, ethical production practices, and environmentally responsible choices. Think Anya Hindmarch’s iconic and endlessly knocked off “I’m not a plastic bag” dating from 2007, or Ali Hewson and Bono’s ’organically sourced clothing line Edun. Cue 2008 and the luxury market that had overperformed since the early 2000’s took a nosedive. The age of ubiquitous luxury and overvaluation had ended.

At Columbia’s GSB’s Retail and Luxury Goods Club’s conference a few months ago, it became clear that fashion houses and luxury conglomerates had begun to tout slow fashion principles to justify their relevance in the “new normal” and search for a more substantial notion of authenticity.

As Daniel Lalonde, CEO of Louis Vuitton NA put it, “The new luxury value equation has shifted, how do consumers construct the ‘value’ of a luxury item and rationalize its purchase? I’ve found that customers respond to creativity, craftsmanship, and value.” Some brands are starting to communicate this “value,” as tied to authenticity, by establishing provenance and, on the flip side, promoting transparency in manufacturing.

One of the cornerstones of this “luxury value equation” is the nature of heritage and craftsmanship. A marquee name is no longer enough, it has to be demonstrated by a tradition of craftsmanship, sourcing, and provenance. Nowadays, status items might be designed in the United States, sewn in China, and then finished in Italy, creating tension for brands in how they portray their production processes. As clothing production has shifted to computerized systems, artisanal and basic technical skills are being shifted to other countries, mainly China. These pressures have led brands such as Louis Vuitton and Gucci with a built-in heritage story to rediscover their legacy and make it the centerpiece of their 2010 campaigns.

It should be pointed out that the groundwork for luxury’s current fixation on provenance has been accelerated by social media, such as tastemaker fashion bloggers and their readership, resulting in increasingly savvy consumers. We’ve entered an era where bespoke details are becoming more mainstream, which was not the case even five years ago. By popularizing the notion that it’s cool to know how clothes are made and finished, social media has effectively shifted the needle towards slow fashion.

LVMH recently joined forces with Parsons to launch a new initiative, “The Art of Craftsmanship Revisited: New York” in which designers are paired with local master artisans to create original fashion ensembles and short documentary films. Their commitment to heritage spans not just years but generations into the future—a wise investment at a time, as NYT fashion critic Cathy Horyn put it, when “many aspects of contemporary life feel unreliable, [so] heritage brands offer a degree of security.”

To be continued next week…