Luxury items are selling well
There’s plenty of bad news out there about the economy, but sales of luxury products are doing very well.
Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.
Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering — they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price.
“If a designer shoe goes up from $800 to $860, who notices?” said Arnold Aronson, managing director of retail strategies at the consulting firm Kurt Salmon, and the former chairman and chief executive of Saks.
The rich do not spend quite as they did in the free-wheeling period before the recession, but they are closer to that level.
The performance of the stock market has a lot to do with it according to the article, so sellers of luxury goods are probably very nervous today!
Posted in: Economy, General Business
Tags: Chanel, designer clothing, luxury, luxury cars, luxury items, luxury sales, luxury sector, Mercedes-Benz, Nordstrom, stock market
Luxury sales are rebounding
Here’s some interesting news regarding the retail sector and the luxury goods market. Luxury sales are rebounding, which probably means consumer sentiment is ticking back up.
The luxury sector is rebounding better-than-expected this year thanks in large part to wealthy Americans replenishing their wardrobes after a year of self-denial and nouveau riche Chinese indulging in a worldwide spending spree, according to a new study released Monday.
Sales of designer clothes, fine leather goods, jewelry, watches and other indulgences around the globe is forecast to surge 10 percent to euro168 billion ($236.7 billion) in 2010, recovering from a disastrous 2009 when sales declined 8 percent to euro153 billion, Bain & Co. said in its annual review of the sector commissioned by Italy’s Fondazione Altagamma association of high-end producers.
Let’s see what happens this holiday season. If double-dip recession concerns are fading away, retailers might be in for a pleasant surprise.
Posted in: Economy, General Business, Retail
Tags: Bain & Co., designer clothes, holiday shopping season, jewelry, jewelry sales, luxury, luxury items, luxury sales, luxury sector, luxury watch sales, luxury watches, nouveau riche Chinese, watches