As the worst financial crisis since the Great Depression swept the globe in October, the high-end Italian clothier Brioni introduced the most expensive line of men's suits in its history. Made to measure from rare fibers such as vicuna, pashmina and Qiviuk, the suits have price tags as high as $43,000.
As manufacturers and retailers hunker down for what could be a prolonged recession, Brioni and a handful of other luxury-goods companies continue to roll out new products at exorbitant prices. This past fall, French luxury label Hermès introduced limited-edition silk scarves inspired by works of the artist Josef Albers at an eye-popping $2,800 each -- the most expensive silk scarf Hermès has ever offered. Van Cleef & Arpels last month launched its 120-piece couture jewelry line, Les Jardins, with prices as high as $2.5 million. Kiton, the Italian designer label, says an $8,125 cashmere-and-vicuna sport coat will be arriving at its stores in a few weeks.
These products and price points were in the works long before consumer spending fell sharply this fall. But the labels behind them are taking comfort in the belief that their target customers -- the wealthiest 1% to 2% of consumers world-wide -- are still spending, even if they are buying fewer things. Individuals in this group, whom Mr. Perrone calls the "elite of the elite," have bought 30 of the $43,000 suits.
Bain does expect sales declines in the luxury market's lower echelons -- in the segments it defines as "aspirational," with brands like Gucci and Louis Vuitton targeting upper middle class consumers with handbags priced from $700 to $2,000; and "accessible," with brands like Coach targeting a broader swath with handbags priced from about $300 to $600.
While middle-income consumers have cut spending because of their income, "that's not the case with the wealthy," says Carl Steidtmann, chief economist at Deloitte LLP.
Full Article:
http://online.wsj.com/article/SB123275452531011647.htmlHoly moses, $43,000 spent on a suit?? I can't even wrap my mind around that right now. :shrug:
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(265 posts)
Send PM |
Profile |
Ignore
