Wednesday, 10 June 2009

Red Is The New Black For The Ailing Luxury Industry – 8/6/09


The latest word on the luxury market by leading American analysts Bain & Co is ‘what goes down must come up.’ Bain representative Claudia D’Arpizio has been quoted in a Reuters article as saying Bain “expects the sale of luxury goods to drop 10 percent this year and not fully recover until 2012.”

The good news is that the luxury market may be back in the black as soon as next year with sales predicted “to rise 1 percent in 2010, 4 percent in 2011 and 7.5 percent in 2012.”

D’Arpizio also goes on to say the rich and fabulous are still in the market for luxury items, but times have changed and “austerity is fashionable, even for the wealthiest customers.”

So long term, growth is forecast for the luxury market. While in the short term, the chief executives of many luxury purveyors – including Burberry, Hermes and Tiffany & Co – will attend Reuters’ first-ever Global Luxury Summit. The summit is being held in Paris, London, Tokyo, Dubai and New York from the 8-10 of June. It is a platform to ask these leading CEOs the big questions; such as their preferred ways of coping with the financial crisis and how their futures are shaping up.


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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au