economy

Even the Rich are Hitting Pawn Shops

Filed under: Wealth

Normally pawn shops are reserved for the seedy and desperate, and the occasional middle-class divorcee looking to unload bad memories and a diamond ring, but in these tightening economic times even some of the country's wealthier individuals are turning to pawn shops to keep their high-end lifestyles and struggling businesses afloat. Since the banks aren't lending, pawn-brokers are seeing increased business from upper class individuals seeking short-term loans to fund everything from elective surgery to business payroll obligations, and they're putting up their diamond jewelry, watches, and even boats as collateral.

That can't be a good sign.

Source

Tags: economy, news, pawn, pawn shop, pawn shops, PawnShop, PawnShops, wealthy

Economy Turns the Rich into "Stealth Shoppers"

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

Earlier this year the term "stealth wealth" kept popping up in reference to the trend in luxury markets away from big bold brand names and toward items with more subtle logos or even totally invisible labels -- it was cool to be so elite that nobody but a select few would recognize who you were wearing.

But now, just a few months later, stealth wealth has been replaced by stealth shopping. The economy has made times so hard for so many people that the wealthy are embarrassed when they are seen spending large amounts of money. Does that mean they stop shopping though? Heck no. They just do it in secret.

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Tags: economy, stealth, stealth shoppers, stealth shopping, stealth wealth, StealthShoppers, StealthShopping, StealthWealth, then and now, ThenAndNow

Daimler Slows Mercedes Benz Production

by Deidre Woollard (RSS feed) —

Filed under: Luxury Cars & Autos

The principle of supply and demand has led to a throttling of production in many places. This week Daimler announced that it is reducing the working week at its largest Mercedes-Benz factory, the Sindelfingen factory near Stuttgart, Germany. BBC News reports that the factory will implement a four-day working week from January 12 until at least the end of March and there may even be some three-day weeks in the mix.

The AP says that Daimler has also announced a reduced work week at the Rastatt plant in southern Germany. Workers there will be facing four-day work weeks and occasional three-day work weeks from January 12 until the end of February. Daimler already expanded their Christmas wokr stoppage for all 14 German production lines. Although production has slowed, the workers have a labor deal that protects them from layoffs until 2011.

Tags: economy, factory, germany, mercedes benz, MercedesBenz

Even Dubai Feels Wall Street's Pain...

by Laura Malesich (RSS feed) —

Filed under: Wealth

In a global marketplace, even Dubai isn't protected from the economy's frosty embrace. Although real estate giants don't anticipate a market crash in this tourist hot spot it has certainly slowed the rush to invest in Dubai down a bit. There may be a positive note in this unpredictable market as some believe the speculators or "flippers" will get weeded out and bring more stability. I don't pretend to understand everything about the effects of our economic issues but it's certainly disconcerting when Dubai is feeling the strain.

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Tags: dubai, economy, global market, GlobalMarket, market, TIME, wall street, WallStreet

Sealine Yachts Trims Their Sails In Hard Times

by Deidre Woollard (RSS feed) —

Filed under: Yachts & Sailing

English yacht company, Sealine, is the latest to be hit by hard times. It is closing down two of its three sites and is set to lose 297 jobs (it employs around 630 people). The firm, which is based in Kidderminster, Worcestershire, is entering into a 90-day consultation process with its staff to reduce redundancies among its office and production workers. Sealine has been in business since 1972 and manufactures around 300 boats a year ranging from 25 to 60 feet. All their boats are constructed entirely in house. A spokesperson for the company has said that the current economic conditions are the reason for the downsizing.

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Tags: economy, england, sealine, yachts

Coach Predicts Tough Times Ahead

by Deidre Woollard (RSS feed) —

Filed under: Handbags

Luxury handbag maker Coach came in with relatively strong numbers for their fiscal fourth quarter but are still feeling gloomy. Although Coach's fourth quarter profit rose 33% the company has predict that the continued consumer cautiousness in the U.S. will reach well into 2009. As Marketwatch indicates, Coach joins other retailers in predicting reduced spending even among luxury shoppers. The company is planning to go ahead with opening more stores (around 40 North American stores and at least six U.S. factory outlets) but Chief Executive Lew Frankfort said in an interview that the company will introduce products with higher material and labor costs at prices lower than they would have charged during more rosy economic times. This move may spur consumer interest but it will also eat into Coach's bottom line. The company is also planning increased expansion into Japan and China where the demand for Coach is on the rise.

Coach stock has taken a big hit too, the shares have lost more than two-fifths of their value in the past 12 months.

Source

Tags: coach, economy, handbags, purses

Akris Outfits High-Powered Women At High Prices

by Tracy Chait (RSS feed) —

Filed under: Apparel, Celebrity Shopping

Swiss designer Albert "I cannot work with cheap fabric" Kriemler has gradually built his family-owned brand, Akris, into a luxury power seller. Now serious competition for longstanding luxury brands Armani and Chanel, Akris often outsells both in that elusive upper echelon of fashion. But you won't see the brand on many a young starlet. Akris is not for the trendy, despite a criticized attempt to change things up for the Spring 08 collection. Favored by women looking to be taken seriously -- Condoleeza Rice is a fan, as is Diane Sawyer -- Akris focuses on quality and timelessness, with the seasonless, highly packable fabric to prove it. Yet highly packable translates to highly priced: a cashmere/silk jersey dress is in the $3-4000 range. Check out selections from Fall at Bergdorf's and also at Neiman's. Then browse the gallery to see some evening pieces, and all those gorgeously cut pants. To see some new shapes and a few perfectly draped dresses, check out the Akris resort collection on Style.com, which isn't out quite yet.

Gallery: Akris Outfits High-Powered Women At High Prices

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Tags: Akris, Albert Kriemler, AlbertKriemler, Armani, bergdorf goodman, BergdorfGoodman, Chanel, condoleeza rice, CondoleezaRice, diane sawyer, DianeSawyer, economy, neiman marcus, NeimanMarcus, power suits, PowerSuits

High Fashion Immune To Low Stocks So Far

by Deidre Woollard (RSS feed) —

Filed under: Apparel

Like the high-end art market, the high-end fashion market continues to remain afloat in difficult times. This week is Paris Fashion Week and as WWD reports couture, the very top of the fashion world, contains to see strong sales. The number of couture clothes available is very small and clothing is in the thousands of dollars per piece.

So far, the couture business for fashion houses like Giorgio Armani, Jean Paul Gaultier and Christian Lacroix hasn't seen any fall off from the declining U.S. economy. The customers for couture exist at the very highest end of the economic spectrum and are often immune to even fairly dramatic economic shifts. Also new clients from Russia, the Middle East and Asia continue to provide a stream of new customers.

Chanel reports that today's client wants a lot of attention and can be demanding. The Chanel team has flown around the world for fittings and presentations. It seems that today's couture houses have to work harder for their customers than ever before often because today's clients have increasingly busy schedules.

Couture also remains a way to reinforce a brand's image. We can't all afford the gorgeous Galliano gown shown above but the beautiful couture clothing serves as an advertisement for the quality and inventiveness of the designer.

Source

Tags: couture, economy, fashion, paris

High Gold Prices, Faltering Economy Crush Gold Jewelry Demand

by Deidre Woollard (RSS feed) —

Filed under: Jewelry

If you've stopped buying the bling, you are far from alone. The World Gold Council reports that gold jewelry demand decreased 21 percent in the first quarter of 2008 compared to the same period in 2007. This was the lowest quarterly level since 1993. The rise in gold prices as wells as the economy were key factors. The demand for gold jewelry in the U.S. decreased as did the demand in Italy, the U.K., India, Japan and many key countries in the Middle East including Saudi Arabia. Where is the demand up? China's gold demand increased 15 percent, Russia also experienced a healthy increase as did Egypt. It is expected that the second quarter of 2008 will also likely be fairly grim for gold demand.

Source

Tags: economy, gold, jewelry

Bentley Headed For A U.S. Downturn?

by Deidre Woollard (RSS feed) —

Filed under: Luxury Cars & Autos

In the past five years, once-staid Bentley has been the car of choice for those with six figures to spend on transportation. But could the current economic downturn finally be starting to affect the luxury carmaker? The Times reports that Franz-Josef Paefgen, chief executive of Bentley, has said the English brand is noticing less sales in their number one market, the good old U.S.A. Traditionally, cars at the highest end of the market are more immune to the economy than those in the middle-to-upper range. Just a couple of months ago, we heard news that 2007 was the the best year ever for Bentley. The luxury car company sold 10,014 units worldwide, outselling Rolls-Royce, which also broke through the 1,000 mark for the first time last year, by around 10 to one.

But Dr .Paefgen says that Bentley, which is owned by Volkswagen, is now experiencing lower demand in their two top U.S. markets, New York and California. Bentley sells about 45 per cent of their cars in the US. Many of Bentley's deep-pocketed customers are in the financial sector which is an area that has taken deep hits recently.

Bentley's saving grace may come from China and Russia which are both just beginning to to really catch fire. In 2007 in China, sales grew by a blistering 93%, offering the automaker hope for a growing market.

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Tags: bentley, cars, economy, expire-images2009-4-20

Blogging From the Luxury Summit: How the Wealthy Spend When Times Get Tough

by Deidre Woollard (RSS feed) —

With dire economic news coming out nearly every day what is going on in the luxury community? Are consumers worried? Have they stopped buying? At the American Express Publishing Luxury Summit the second annual Survey of Affluence & Wealth in America produced by American Express Publishing Corporation and the Harrison Group was revealed. As the survey reveals, no one is stopping their shopping anytime soon but they are shifting from what they call an "iWant" economy to an "iNeed" economy and finding new ways to spend money.

Source

Tags: economy, expire-images2009-4-20, luxury summit, LuxurySummit, recession, shopping

Continue reading “Blogging From the Luxury Summit: How the Wealthy Spend When Times Get Tough”

Ultra Rich Continue to Spend

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

Economic slump or not, according to The New York Times the ultra-rich aren't slowing down on spending. This news follows right along with the current trend of contradicting reports we keep hearing, like the fact that luxury retailers are reporting steadily falling sales while private jet spending is holding steady or even going up but luxury car sales are down. So what is it, are the rich spending or aren't they? Or is it just that the ultra rich are still spending, but all those who are just "middle-of-the-road" rich are cutting back?

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Tags: economy, money, rich, shopping, spending, wealthy

Slowing Economy? Private Jet Travelers Refuse to Go Commercial

by Rigel Celeste (RSS feed) —

Filed under: Wings

Having or chartering a private jet used to be a big deal, a very special luxury enjoyed by only the elitest of the elite, but private air travel is practically a necessity for even "entry level" wealthy people in today's world. Even with the economy in the condition it's in, those accustomed to traveling privately aren't giving up the luxury in exchange for less expensive commercial flights. And although chartering private jet travel certainly isn't cheap it's not as pricey as it used to be -- as little as $10,000 will get you where you want to go.

If the economy has any kind of negative effect on private air travel experts expect it to be in how much people fly, not in the privacy they expect when they do. Many of those who use private charters and/or own their own jets consider it a necessity in their lives, not a splurge.

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Tags: commercial aviation, commercial flights, CommercialAviation, CommercialFlights, economy, money, private jet, private jets, PrivateJet, PrivateJets, spending

Will the U.S. Economy Affect Baselworld?

by Deidre Woollard (RSS feed) —

Filed under: Timepieces / Watches

Every year the watchmakers and jewelers converge on Basel, Switzerland in the spring for Baselworld and the SIHH show. It is the place where exhibitors display some of the most dazzling luxury goods in the world. But this year, fears over the U.S. economy may be dampening the usual excitement.

The show, like fashion shows, is one that looks ahead, trying to sell buyers on the goods they will want in their stores in September and October for the holiday season. Many are already predicting that the Christmas business of 2008 will be bad news for both the U.S. and Europe. The annual event has over 2,000 exhibitors and attracts around 100,000 buyers. According to Jacques Duchene, president of the BaselWorld Exhibitors Committee quoted in National Jeweler, last year was a boom year for Swiss watches: Swiss watch exports reached about $15.75 billion last year which was a 16 percent increase over the previous year, and a rise of more than 50 percent over the previous four years.

In this Reuters article, Rolf Schnyder, the chief executive of Swiss watchmaker Ulysse Nardin is quoted as saying that the slowdown in the U.S. market will generally affect the mid-range products. This reflects the general trend we have seen where luxury consumers at the top of the market are spending but those that are at the lower end of the affluence spectrum are cutting back.

For those who make watches and jewelry, bright spots can be found by looking east. Increased demand in Asia, Russia and the Middle East will likely provide most manufacturers with market growth even if other economies continue on their gloomy course. One thing that I will be curious to see is if the change in consumers will change the products. The big spenders in these markets often have particularly lavish tastes and a taste for diamond and jewel-covered watches as opposed to more subtle watches with elaborate complications. I wonder if in the next few years, the major manufacturers will be shifting their output to attract these customers.

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Tags: baselworld, baselworld 2008, economy, expire-images:2009-4-3, watches

Drop in Demand for Luxury Cars Continues

by Rigel Celeste (RSS feed) —

Filed under: Luxury Cars & Autos

Do luxury markets really hold up better than others during an economic crunch? Many experts say no, and it would seem the steady decline in luxury auto sales is backing them up. Estimates say that automobile sales fell in March, which would mark the 5th straight month of decline and could result in the lowest numbers since 2005. Analysts speculate the drop in auto buyers has to do with several factors, including higher-end buyers holding onto their vehicles longer (waiting for the market to improve) and fewer entry-level lux auto owners being able to afford to buy right now due to increasing costs in other areas of their budget.

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Tags: auto, automobile, automobiles, autos, economy, luxury, luxury market, LuxuryMarket, money, shopping, spending, wheels

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