More bad news for the luxury market, the Wall Street Journal reports on Gucci's sales figures. Sales at Gucci fell 3.3% in the first quarter. What's interesting is that Gucci's new strategy to improve their bottom line is to market lower-price products more aggressively. This goes against the common wisdom for luxury brands which is that the when the economy is down it is the time to focus on the affluent consumers who are still spending. Gucci also announced this week that popular actress Claire Danes will be the face of their fine jewelry line which follows an announcement that James Franco is the new face of the latest Gucci fragrance.

Other brands in the luxury world including Louis Vuitton are still doing well and perhaps Gucci is looking to mimic that glossy success. The Chief Financial Officer of Gucci's parent company PPR Jean-François Palus has said that the brand was focusing too much on their more expensive products such as those in the Pelle Guccissima line (even though the brand did well last year with over 2.2 billion euros in sales). Gucci is one of the brands that has weathered the most storms in the luxury market, languishing for years before being revitalized during the Tom Ford era, and I have no doubt they will triumph in the long run.

A study done for VINEXPO by the International Wine and Spirit Record on wine and spirits sales tracked sales and consumption trends all over the world. It found that the US is in a position to become the leading consumer of wine in the world by 2010, with red wine accounting for more than half of what will be a $23 billion market. Worldwide, wine consumption is expected to increase by 266 million bottles every year until 2010!

Spirits are encountering considerable growth, as well, with tequila, cognac and vodka sales all increasing in the US. Vodka is currently the most consumed spirit in the US, but is expected to eventually account for more than 25% of all spirits consumed. Worldwide, spirit consumption is increasing by roughly 1.3% per year, with drops only in gin, while whisky, rum and tequila are taking off in many other countries.

In spite of bans and animal rights outcries against its production, fois gras might be more popular than ever before at eateries. Luxury and gourmet foods are becoming increasingly popular and more diners are seeking out high-end meals in general. There are only a couple of farms in the US, but the French fois gras industry is expecting a record year. 85% of the world's production of the fatty duck (or goose) liver comes from France and the French foie gras producers see the 6% growth from the last year as in indicator of things to come, though they do say that half of the annual sales of fois gras are generated in December.

A marketing director in Santa Clarita, California has a new take on how to sell a house. To give the houses in a new development a "lived-in" feel, she has hired a group of actors to play house while prospective buyers come out and tour the property. "Mom," "Dad" and their two "kids" bake scones, celebrate a birthday party and play games, interacting with each other and with any guests who wish to play along or ask questions. It's "reality" real estate and the program has been dubbed "Home Life." Many of the guests who toured the house when it opened were actual realtors, not looking to buy the house, but to see how appealing having a "family" would be to clients.

As one visitor from USC's business school put it, "You imagine yourself in this situation. If you have a beautiful experience, that gets people to think, oh, I want to live like that!" The model family was as appealing, if not more so, than the home itself. It's easy to see how clients, perhaps used to watching reality shows on television, could relate quickly to a similar scenario that confronts them in real life.

Since the setup had immediate appeal to buyers and realtors alike. This could be the start of a new real estate trend, particularly with upmarket estates and in new developments, where houses might look less lived in because of their newness or their size.

According to the company Leadpile.com in a press release, more and more luxury car buying is going online. The company has an interest in the issue because they sell luxury cars via the internet, though they do make some strong points in their argument. Luxury car buyers are looking for stylish vehicles that offer comfort and convenience, and car dealerships could not be considered to be as convenient as shopping from your computer at home. The question is really whether the shoppers will miss the interaction and attention at upscale dealerships, which, in some locations, can rival the level of service received at posh salons.

With buyers who prize both comfort and convenience, it would make sense that they would put the comforts of being pampered at a high-class dealership above the convenience of shopping online. If convenience alone was the issue, they might not hold out for a luxury car in the first place.