Friday, 7 August 2009

When The Going Gets Tough, Women Go Shopping - 7/8/09

A Reuters article, Crisis Pushes Men To Therapy, Women To Handbags, caught our eye this morning. It confirmed our thoughts that women carry very different baggage from men – handbag(agge!)

This article stated that, "Louis Vuitton and Hermes bags are still amongst the most sought-after luxury products compared with weak demand for watches, a traditionally male-dominated sector.” At the moment, there is definitely no contest when it comes to handbags versus watches, women are keeping those ateliers working hard around the clock, whilst the Swiss watchmakers have plenty of time for a coffee break.

The handbags versus watches argument is also about direct retail stores (handbags, leathers) versus third party (wholesale to retail), where the tap has been turned off or slowed to a trickle. The wholesalers are at the mercy of the retailers. And as watch retailers internationally (Australia is excluded, trade continues well according to our industry sources) have reduced sell throughs, their inventory naturally has grown. So they in turn have pushed back with reduced orders to wholesalers, and the domino effect continues down to the manufacturers. In essence, this all boils down to inventory issues, something that may not be fixed for a long time …

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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,