In a great article today by Lauren Sherman in Forbes.com "The New Rules of Luxury Spending", she outlines the core principles of sustainability and success in the luxury industry. Brands that have seen huge growth in the past few years, which could be more accurately described as entry point luxury or prestige brands, will find, in these dynamic times, the disposable income of a greater number of people who could afford to buy into the brand will now fall away. This will have a huge impact on a few brands as their growth and ongoing sustainability was based on the recruitment of new and mostly young clients that wanted to be seen with a designer brand. Priorities will shift and the need and means to purchase will no longer be available.
As great believers of true luxury and the inherent quality and dependability of brands to constantly and consistently deliver on these principles, the keys to longevity of the most premium luxury brands; think Hermes,Chanel and Cartier in particular, lie within. With Louis Vuitton, Bvlgari, Gucci and Prada to follow. A quote extracted from Lauren Sherman's article says it beautifully in our book.. "The days of shopping 'til you drop are over," says David Lamb, chief strategic officer at diamond giant De Beers, which, with London-based market research firm Ledbury Research, recently examined the changing demands of the high-net-worth customer. "Instead of seeking out novelty, they're exploring authenticity," he says. "In this kind of economic climate, you literally can't afford to make a mistake."