If the fears of hyperinflation are realized, you'll look back with pride on your luxury purchases. All that money you've sunk into custom jewelry and top-of-the-line stones will make you look like an absolute genius. Well, that's the position of South African billionaire Johann Rupert, and I'd take the advice of a guy who can be described that way.

According to Bloomberg News, the told investors, "If we enter hyperinflation, you're going to be so glad that you bought that stuff two months or six months ago." He added, "If inflation picks up, you're going to see people running into your stores, buying high jewelry."

Will inflation cause a mob to form outside the Cartier store on Fifth Avenue? Well, I don't think I'd worry too much about the pushing and shoving, but being ready to throw an elbow probably isn't a bad idea.

Of course, Rupert has something to gain – his company, Richemont, is the world's second largest luxury goods maker (behind LVMH). In his talk with investors in the company controlled by his family, he forecasted "normal growth" with luxury sales showing signs of recovery this month and next.

Even in this economic climate there is still room for an it bag, it's just a more modest success than past frenzies. Lancel's Adjani bag named after the French actress Isabelle Adjani has sold out giving Lancel what the Guardian terms a "slight rise in comparable retail sales since January." Lancel's chief executive says the growth is between zero and five percent, barely a blip in other times but a welcome bit of retail uptick these days when only a few handbag brands like Hermes and Louis Vuitton have been able to sustain increases.

The versatile multi-pocketed tote comes in a variety of materials in a price range from 800 euros to 8,000 euros. It was inspired by Isabelle Adjani and she is the spokesperson for it. The company expects more than 10,000 Adjani bags in France by the end of the year, having already sold the equivalent of two years of stock in a few months. The success of the bag has encouraged the Lancel brand to skew toward the high end and the company will open new shops in Tokyo, Moscow and Dubai over the summer. So far Lancel, which makes its bags in Spain and Italy, does not have a presence here in the U.S.

By the sound of it you'd think that Cartier was next to being bankrupt, though that isn't the case. More like the optimistic balloon of sales growth is deflating (one of the reasons I used the "Ballon Bleu" watch for the image - and added the sad face). During the last few years of rapid growth and increased demand for Swiss watches and luxury goods, production increased and luxury firms like Cartier staffed themselves accordingly for what looking like prefect blue skies ahead. Now, about 5 years after that all started, the bubble has burst, and Cartier is being forced to let go of many of those people it hired at its production facility in La Chaux-de-Fonds to help supply the perceived demand for luxury watches. Note that this is one of three Cartier production sites.

While Cartier's market success is not exactly a bellwether of the luxury industry, it is a pretty good indicator of current trends. Lots of companies are reducing their work forces, but the reality is that they are just getting closer to the way things where before the economy inflated itself so much. Now in survival or recession mode, luxury brands such as Cartier need to save cash while planning on better times ahead - instead of focusing on making lots of watches right now. Recall again that this cut at Cartier of about 400-500 people (or roughly 50%-60% of their work force) is in the production area, not necessarily at other areas of the Richemont Group owned company including administration, marketing, and sales. Many retained employees will received roughly 94% of their pay until things get better. Then then Ballon Bleu watch above can turn that frown... upside down!

Via WorldTempus here & here (in French).

Ariel Adams publishes the popular watch review site aBlogtoRead.com.

Last year the Richemont Group added Roger Dubuis to its luxury watch collection of brands. Richemont owns such prestigious brands as A. Lange & Sohne, Jaeger LeCoultre, and Panerai. The acquisition of the Roger Dubuis occurred in the midst of wild growth in key markets such as Asia and the Middle East. With surges expected, Roger Dubuis promoted a liberal hiring policy adding new staff quickly.

Recent revenue disappointments have resulted in a decision to lay off as much as one sixth of the Roger Dubuis work force, or about 70 people. The move will emphasize a marketing refocus for the brand that hopes to increase its presence in retail stores as well as complete production on highly sought after high-end models.

Roger Dubuis seems eager to express that this move does not signify an end to the esteemed watch maker, nor does it indicate a slew of bad management decisions. No one is immune from the current economic market, and Roger Dubuis was perhaps a bit too optimistic with its growth and watch production capacity. Unlike "Tier One" luxury watch brands with the most valuable brand names, Roger Dubuis is less known (making them "Tier Two'), even though they still offer a very high quality and complex watch product line. This can negatively affect the value proposition of buying their watches in hard times for some consumers.

Despite this news, Roger Dubuis customers are still eagerly awaiting the release of its most expensive watch date, a $500,000 complex multi-timezone perpetual calendar timepiece. Pictured, is a Roger Dubuis Excalibur with a 45mm white gold case, minute repeater, perpetual calendar, tourbillion, and double rotors.

Via Bloomberg News.

Ariel Adams publishes the watch review site aBlogtoRead.com.

This is the last of the first collections for the newly unveiled Ralph Lauren watch brand. The Classic Slim collection here is very different from the Sporting or Stirrup collection, though they all share use of Roman numeral dials. The Classic Slim collection houses the very thin RL430 movement derived from Piaget, another company by joint parent the Richemont Group. This slim Ralph Lauren watch is only 5.35mm thick.

The most noticeable element of the Classic Slim collection watches is the beautiful use of guilloche engraving machine work on the dial and bezel. The 42mm 18k rose gold case and silvered dial each share similar engraving patterns. Guilloche work is often done by hand on very old machines that must be kept running, as new ones aren't manufactured often or any longer.

Style is similar to Breguet, complete with the engraving, broad Roman numerals, and pomme hands. It is a nice look from the brand that makes luxury sensible. The decorated, yet practical look of the Classic Slim watch works well with the demure logo. Around your wrist goes a dark-colored crocodile strap attached to lugs that appear just a bit too small, but enhance the roundness of the dial.

Ariel Adams publishes the watch review site aBlogtoRead.com.

First for the new Ralph Lauren watch brand I discussed the Stirrup Collection. Featured here is the second line, the Sporting Collection. I commented on how the Stirrup Collection looked like a design melding between Cartier and Hermes; well the same is true here. True to its name, the Sporting Collection is more sporty then the Stirrup of Classic Slim collection. Six large screws keep the bezel looking strong, yet can pass for being functional if necessary. It's strong looks aren't aggressive looking though, which is nice as this watch says "I bathe horses for fun."

I am on the fence about the application of the Ralph Lauren logo, and whether I admire it or not. It is certainly retro, reminding you of a time when branding was less of an issue that it is today. The models come in three flavors. A subsidiary seconds model (the Classic) , the Chronograph, and the World Timer with power reserve. Metals are either steel or gold. Again, Richemont gives Ralph Lauren access to the parts bin, and the Sporting Collection features IWC mechanical movements such as the RL98295 for the world timer. My pick is the black-faced chronograph on the metal bracelet, that is a sure hit.

Ariel Adams publishes the watch review site aBlogtoRead.com.

As the luxury watch market feels the pressure from the economy on its shoulders, you wouldn't expect to see new brands popping up. Regardless, this partnership between Polo Ralph Lauren and the Richemont Group took seed before the economic hit really began and there was no stopping this seemingly immune connection of fashion and haute horology.

The new Equestrian line from Ralph Lauren is separated into three collections. The first of which is the aptly named "Stirrup Collection" due to the shape of the watch case. No, it isn't the tombstone collection. These are no mere fashion watches as can be seen from their unveiling at which occurred at the luxury watch show SIHH 2009. Richemont is the name behind many luxury brands, some of which the Ralph Lauren collection borrows from literally and thematically.

Inside the Ralph Lauren Stirrup collection watches are all Jaeger LeCoultre (Richemont owned) movements, such as the caliber RL750 in the power reserve version of the watch. The 18k rose gold case has a domed anti-reflective coated sapphire crystal, with a water-resistance of 30 meters. The watch designs look to me like a cross between Cartier (Richemont owned) and Hermes (not Richemont owned). Think of the Roman numbers (Cartier) and the shape of the case that looks like the Hermes lock-shaped watch. The stirrup collection is mounted on a wide crocodile band that is almost like a bund strap given how the lugs are attached. It's attractive and sober looking - just what the economy needs right now.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Two years ago luxury brands were aiming at the masses and Dana Thomas wrote an entire book on how luxury was losing its luster. With these sobering economic times, will luxury get some of its "luster" back? That seem to be the message from Cartier CEO Bernard Fornas who told Reuters at the SIHH watchfair that " the real, true luxury is back" and that consumers are being tougher with their choice of brands.

His words come as Cartier parent company, Richemont posted at 12 percent drop in third-quarter sales and announced that 180 out of around 200 staff making watch casings at a Cartier plant in Switzerland would be put on part-time work starting next month. Richemont's statement included the grim forecast that :"given the current economic climate and the uncertainties facing us, we see no cause for optimism."

Swiss watch exports have fallen and Richemont has seen demand for their brands including Cartier, Montblanc, Piaget, IWC, Baume & Mercier and others sink over the past year especially in the United States. Bernard Fornas found hope at the Geneva watchfair, saying that it was better than expected. As my colleague Ariel Adams recently mentioned, Cartier is refining and adding to its classic lines introducing a new Cartier Tank Americaine Tourbillon Volant Watch to tempt watch buyers.

It seems that some brands are facing a new crossroads: either come up with lower priced goods to tempt the customers they spent the last few years acquiring or retreat, slow production, cut jobs and focus on the smaller, wealthier customers who will continue to spend, albeit a bit more carefully.

Polo Ralph Lauren was recently admitted to the Salon International de la Haute Horlogerie (SIHH), a prestigious luxury watch industry trade show. Interestingly enough Ralph Lauren does not currently offer any luxury watches. That is all going to change soon as Ralph Lauren has partnered with the prestigious watch making Richemont Group to produce watches with a license from popular fashion house. The new watches will be distributed through a number of global retailers under the "Polo Ralph Lauren Watch and Jewelery Company" name.

Richemont is the controlling group behind a number of high performing luxury watch brands such and IWC, Officine Panerai, and Cartier. The ensuing Polo Ralph Lauren watches will be established as luxury models, though no images of the designs have been made available just yet. This will all change in less than two weeks as the new watch brand is set to release its first line of models at the 2009 SIHH show later this month in Geneva.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Bastion of top-drawer British style Bamford & Sons is looking for an investor, and luxury goods behemoth LVMH, owner of Louis Vuitton, might buy in. "We've come to the end of phase one, and we need a partner with more expertise in other markets," Lady Carole Bamford, who founded the brand in 2004, tells the Financial Times. She has engaged the Blackstone Group to help the firm, which has experienced 50-55 per cent growth per year for the past two years, field investment offers.

LVMH and rival luxury conglomerate Richemont are in the running, the paper reports. We have previously written about Bamford's custom $30,000 black PVD Rolex Daytona and its fall line of cashmere shooting jackets and such made from sustainable materials. They currently have men's, women's, accessories and bath & body collections, carried at their own retail stores (above) and the likes of Barneys. Bamford bills itself as "the first mainstream luxury brand to make an identity out of its organic stance."

The global economic picture may be grim but Compagnie Financière Richemont SA, the luxury goods group behind Cartier, Piaget, IWC, Panerai and many other luxury brands had a pretty good fiscal year. They reported that for their year ending March 31, the company had an 18 percent rise in net profits to 1.57 billion euros, or $2.22 billion, on a 10 percent increase in sales to 5.3 billion euros, or $7.51 billion. The strong brands included the group's watch and jewelry businesses while Chloé, its main women's wear business was relatively flat. Obviously this is good news but these days no company spokesperson can comment on earnings without a bit of gloom and doom. WWD reports that Johann Rupert, Richemont's chairman delivered the same cautious but hopeful line that we've seen from other luxury companies. Many including LVMH and Hermes have predicted that even in these tough times their profits will continue to rise.