Penny pinching or business as usual?
Do hard times effect everyone, or do the rich keep getting richer?
Who's not broke at this time of year?
The aftermath of Christmas gifts, holiday parties, which require a little something for the hostess and a new cocktail dress, another dress for New Years and yet another for. . . the season, shoes to go with all the dresses (of course), party funds, dinner's out and an overall increase in spending all contribute to an economic slump come January.
This year, however, you can bet the beginning of the New Year will be far worse than others because of the current state of the economy. Globally, spending is waaaaay down, but it's especially evident in North America. Businesses are closing, huge corporations are majorly downsizing and debt is undeniably causing suffering and a more conservative spending regime.
Retailers everywhere are seriously feeling the recession, but how is business for couture designers and labels?
Everyday people with everyday incomes are re-evaluating their needs and consumer habits, but what about the super rich? Are they cutting down on their PJ (private jet, of course) chartered excursions to St. Tropez and Saks Fifth Avenue shopping sprees, or is it business as usual?
Certain luxury categories, such as cars and jewellery, are affected more so than other industries, such as fashion. Both Mercedes Benz and Bentley sales have significantly decreased over the past year. In fact, Mercedes is slowing production down so drastically, the factory is instigating a three or four day work week in the New Year. Bentley's numbers are also way down and the company is turning to international customers to make up for lost sales on this end of the pond.
Though not as drastic, things aren't looking up so much on the other side, either. Reports of Parisian pawn shops accepting bottles of wine for consignment (typically, they exclusively accept high end jewellery and rare and collectable trinkets) for the first time ever shows the French are just as desperate for euros as we are for dollars. The demand for gold in jewellery is down 21 per cent this year and moderate label Coach is scheming a plan to lower prices in 2009 to increase sales.
Despite all of these luxury industry's hardships, mega labels such as Jean Paul Gaultier, Giorgio Armani and Christian Lacroix are reportedly doing as well as ever and are nearly immune to the current economic state. Shoppers who are buying these labels are clearly wealthy enough that the price tag doesn't need to show a number as it doesn't matter what the item costs; they will always be able to afford it. People this rich are hardly affected by the economy's fluctuations and will continue to shop as they please. This is good news for Donatella and Miuccia as although their couture garments are rather exclusive and the market is niche, the high price makes up for the minimal number of clientele and the collections are still selling strong.
The New York Times recently reported on the ultra—rich and their spending patterns and put it quite simply. Free-spenders have apparently earned so much cash duringthe good times, that they are still enjoying smooth sailing now, literally. Yacht purchases, extravagant getaways, insanely expensive Upper East Side real estate properties and multi — million dollar Plaza Hotel parties are all still showing up on the super rich's Visa bills.
Good thing only the elite and privileged are invited to these parties and vacations as they are the only ones flushed with enough money to afford the couture pieces necessary to attend the events.
Who's not broke at this time of year?
The aftermath of Christmas gifts, holiday parties, which require a little something for the hostess and a new cocktail dress, another dress for New Years and yet another for. . . the season, shoes to go with all the dresses (of course), party funds, dinner's out and an overall increase in spending all contribute to an economic slump come January.
This year, however, you can bet the beginning of the New Year will be far worse than others because of the current state of the economy. Globally, spending is waaaaay down, but it's especially evident in North America. Businesses are closing, huge corporations are majorly downsizing and debt is undeniably causing suffering and a more conservative spending regime.
Retailers everywhere are seriously feeling the recession, but how is business for couture designers and labels?
Everyday people with everyday incomes are re-evaluating their needs and consumer habits, but what about the super rich? Are they cutting down on their PJ (private jet, of course) chartered excursions to St. Tropez and Saks Fifth Avenue shopping sprees, or is it business as usual?
Certain luxury categories, such as cars and jewellery, are affected more so than other industries, such as fashion. Both Mercedes Benz and Bentley sales have significantly decreased over the past year. In fact, Mercedes is slowing production down so drastically, the factory is instigating a three or four day work week in the New Year. Bentley's numbers are also way down and the company is turning to international customers to make up for lost sales on this end of the pond.
Though not as drastic, things aren't looking up so much on the other side, either. Reports of Parisian pawn shops accepting bottles of wine for consignment (typically, they exclusively accept high end jewellery and rare and collectable trinkets) for the first time ever shows the French are just as desperate for euros as we are for dollars. The demand for gold in jewellery is down 21 per cent this year and moderate label Coach is scheming a plan to lower prices in 2009 to increase sales.
Despite all of these luxury industry's hardships, mega labels such as Jean Paul Gaultier, Giorgio Armani and Christian Lacroix are reportedly doing as well as ever and are nearly immune to the current economic state. Shoppers who are buying these labels are clearly wealthy enough that the price tag doesn't need to show a number as it doesn't matter what the item costs; they will always be able to afford it. People this rich are hardly affected by the economy's fluctuations and will continue to shop as they please. This is good news for Donatella and Miuccia as although their couture garments are rather exclusive and the market is niche, the high price makes up for the minimal number of clientele and the collections are still selling strong.
The New York Times recently reported on the ultra—rich and their spending patterns and put it quite simply. Free-spenders have apparently earned so much cash duringthe good times, that they are still enjoying smooth sailing now, literally. Yacht purchases, extravagant getaways, insanely expensive Upper East Side real estate properties and multi — million dollar Plaza Hotel parties are all still showing up on the super rich's Visa bills.
Good thing only the elite and privileged are invited to these parties and vacations as they are the only ones flushed with enough money to afford the couture pieces necessary to attend the events.
