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# The Denim Bubble
$300 Jean Market About to Crash?

By Eva Rubenov | Published 2006-07-12 | Fashion
Source: Trend Hunter, https://www.trendhunter.com/trends/the-denim-bubble-300-jean-market-about-to-crash
References: [slate](http://www.slate.com/id/2124237/?GT1=6772#)

Is $300 a reasonable price to bay for [faded and torn jeans](https://www.trendhunter.com/trends/coated-jeans)? For the last few years, the fashion industry would suggest that the answer to that question is, 'YES'. However, many trend experts aren't so sure, predicting a pop in the $300 denim market. Like all good bubbles, the crash has been predicted for more than a year. Will it pop?

"Last summer, when spending $200 or more on a single pair of jeans still seemed crazy, the stock of a small company called [True Religion](https://www.trendhunter.com/trends/true-religion-2) traded at less than a dollar. But over the past year, as True Religion jeans started hugging the butts of celebritiesâ€”the company's Web site lists Jessica Simpson, Angelina Jolie, J. Lo, and the cast of Desperate Housewives as enthusiastsâ€”the rest of us began snapping up pairs. True Religion's stock soared to over $17. If you looked at sales growth without knowing anything else about the companyâ€”$22 million in the second quarter, a fivefold increase from a year earlierâ€”it would be easy to think that True Religion had come up with a cure for cancer instead of a more expensive pair of jeans.

Jeff and Kymberly Lubell, the husband-and-wife team who run True Religion and own more than 40 percent of the company's stock, should enjoy this while they can, because there is a denim bubble, and it looks like it's about to burst. The $110 million "[premium denim](https://www.trendhunter.com/trends/fall-denim-styles)" market is beset by signs of excess. Consider the $128 jeansâ€”for toddlers. Or the 400 percent markup: A pair that costs $60 to make retails for $300. Or the race to rush new brands into the stores: Seven for All Mankind, followed by Citizens of Humanity, followed by Stitch's :" - Slate.com

## Trend Insights (Trend Hunter)

- Score: 4.3/10
- Popularity: 79% | Activity: 43% | Freshness: 8%
- Audience gender: 50% men, 50% women
- Primary generations: Millennial
- Top markets: North America, Europe

## Categories

[Trend Hunter](https://www.trendhunter.com/trends) > [Fashion](https://www.trendhunter.com/fashion) > [Hip Fashion](https://www.trendhunter.com/hipfashion)

## Key Themes

### Key Themes Behind This Trend

- **Decline in Premium Denim Market:** The $300 jean market is predicted to crash due to signs of excess and a looming denim bubble.
- **Increasing Price Consciousness:** Consumers are becoming less willing to spend $200 or more on a single pair of jeans.
- **Shift Towards Value-based Brands:** There is a growing demand for affordable and high-quality jeans, causing a surge in value-based brands.

### Where This Applies

- **Fashion Retail:** The fashion retail industry needs to adapt to the decline in the premium denim market by offering more affordable options.
- **Textile Manufacturing:** Textile manufacturers should explore producing high-quality jeans at a lower cost to cater to the increasing price consciousness of consumers.
- **E-commerce:** As consumers shift towards value-based brands, e-commerce platforms have an opportunity to offer a wide range of affordable jeans options.

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