"Why Luxury Will Lose Its Luster in 2008"
- Thread starter IntlSet
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Conversely, I think that places with booming economies (such as Hong Kong and China) are seeing a significant increase in luxury purchases.
I'm gonna be taking a break from any major purchases for a long time as well. I have to save money for grad school and a new computer!
I'm gonna be taking a break from any major purchases for a long time as well. I have to save money for grad school and a new computer!
Ppl are scared and the over growth and too much spending is simply catching up to us.....economy has always gone up and then down generally.....
The luxury market will do fine imo, just less profitable than before but only compared to the crazy profits they are used to......
But the Economy is in a unique situation now with the rising costs vs. the earning lows and loosing dollar and the stupid war we are engaged in....bad combo....very bad...the nice balance of before is lost and needs readjustment to find it again.....hopefully soon....sigh.
The luxury market will do fine imo, just less profitable than before but only compared to the crazy profits they are used to......
But the Economy is in a unique situation now with the rising costs vs. the earning lows and loosing dollar and the stupid war we are engaged in....bad combo....very bad...the nice balance of before is lost and needs readjustment to find it again.....hopefully soon....sigh.
This is interesting. I was really noticing the drastic markdowns at the Barney's sale recently. Some Louboutin shoes were nearly 70% off. I thought it was just me thinking that I'd never seen such deep markdowns on high-end designer stuff, but I guess this article explains it.
Sonya is right about the uber wealthy will just sail away and purchase as they always have. The "affluent masses" reads, to me, the upper groups of the middle class. Remember, the middle class makes up the bulk of society, NOT the uber wealthy. ANd I think the bulk of luxury goods has always been purchased by those that want "better, prettier, be part of the crowd, I deserve it, etc", not those that really have the money to say "oh, I'll take one of each style in every color. Have them sent to my home. Ta".
When I've been out shopping, I never, ever, ever see cash or checks. Always credit cards. Now, they may pay them off each month. They may be using debit cards. I don't know. But, considering the amount of consumer debt there is, the fact that we have the worst savings account rate in the western world and the "gotta have it NOW" mentality that is woven into every fiber of the US culture; I seriously doubt it.
Those "creative fincancing rates" for home start to adjust in the next year. You think it's bad now? Just wait; it's going to get MUCH worse. Much worse.
When I've been out shopping, I never, ever, ever see cash or checks. Always credit cards. Now, they may pay them off each month. They may be using debit cards. I don't know. But, considering the amount of consumer debt there is, the fact that we have the worst savings account rate in the western world and the "gotta have it NOW" mentality that is woven into every fiber of the US culture; I seriously doubt it.
Those "creative fincancing rates" for home start to adjust in the next year. You think it's bad now? Just wait; it's going to get MUCH worse. Much worse.
Great post, cjj. I agree... I'm not sure for most companies, like NM (again, I will happily stand corrected if I'm wrong) make their living from the uber-rich, but rather, from the upper-middle and middle classes.
I guess I never thought about how many credit cards I see out... I use one, too. I guess you can't beat the convenience of it, but they do leave a lot of room for you to screw up (example: allowing you to go OVER your credit limit -- then why call it a credit limit? -- then charge you a giant fee).
With the "profit" and "greed" corruption that is going on among many companies (luxury markets or down to Wal-Mart) plus the "buy, buy, buy" trend with the consumers with its over-stretched "credit" limits (borrow off the cards/loans/mortgage) the so called "bubble" or "air" money... somethings have got to POP!
Not only are we looking at a housing crisis... if you research further, unemployment will also jump due to our jobs all being sub-out to people who get their degrees overseas (they don't get into college loan debts like many an American, who needs to be paid more to pay-off their loan). Sad part is, many of these foreign educated degree holder probably does not have to be in debt or even pay at all to go to a foreign college; hence will take less pay then an ordinary college kid.
That is the very NEXT crisis that will hit home and already have been in motion (company hiring degree holder from another country) for close to 5-7 years now? Remember, THEY are cheaper labor than many other locals... if you are a company; and to make the most profit... they are what you want.
Oh well... economy is like a vicious cycle; an action will prompt a reaction.
Just glad that me and hubby did not have any college debts.
Not only are we looking at a housing crisis... if you research further, unemployment will also jump due to our jobs all being sub-out to people who get their degrees overseas (they don't get into college loan debts like many an American, who needs to be paid more to pay-off their loan). Sad part is, many of these foreign educated degree holder probably does not have to be in debt or even pay at all to go to a foreign college; hence will take less pay then an ordinary college kid.
That is the very NEXT crisis that will hit home and already have been in motion (company hiring degree holder from another country) for close to 5-7 years now? Remember, THEY are cheaper labor than many other locals... if you are a company; and to make the most profit... they are what you want.
Oh well... economy is like a vicious cycle; an action will prompt a reaction.
Just glad that me and hubby did not have any college debts.
I agree. Chanel's price increases have been literally exponential.
I hope this makes them reconsider doing any more drastic increases.
My mom ALWAYS uses checks nearly everywhere she goes. She says she'll only stop using them when she's MADE to stop using them lol. She doesn't even like debit cards and hates when people waving their debit cards or CC's get all huffy behind her because she's finishing up her check (she writes most of it in advance so all she has to do is fill in the amount).
I use my debit card sometimes if something I want is pricier, but in general, I stick to cash.
And we're not the uber-wealthy, either.
. I think we are going to see alot of tightning of the purse strings.