Recession, what recession? recent reports have shown that consumers are still spending big bucks on luxury goods. Considering the current climate this probably comes as a big surprise it did for me, someone tell me who's buying all this Moët and Ferrari's and give them my number please.
A recent Harris poll shows the continuing rise in profits for luxury brands so I want to work out why and HOW they are purchasing luxury goods when a lot of us are struggling to afford Primark right now
Top of the pile in fashion brands we have giant conglomerate LVMH and french brand Hermes. In just a year LVMH's worth has grown by 2 billion, from its 16 billion in 2012 to 18 billion in 2013, which is pretty astonishing considering we are meant to be in a recession. So why are we choosing to spend our hard earned cash on luxury items?
It is believed that after years of tightening their belts, consumers are starting to think more about the quality and longevity of what they purchase, which makes sense. Its all well and good buying a couple of 5 pound tops from Primark, but will you still want to be seen in them in two months time, or a more likely question will they still be in one piece? It seems we are looking for investments and that comes at a price I'm afraid.
Moreover it seems extravagant dressing is a way of showing that you are coping with the recession its a clear mark to people of your wealth.
Paris brand Hermès have also seen a sharp rise in profits recently, net profit for the year jumped 24.6%, being one of the biggest names in the luxury fashion industry Hermès are making sure they hold on to their crown as one of the most prestigious apparel and accessories brands in the business.
Something you may or may have not noticed is that one of the biggest consumers of luxury brands is China, part of the emerging BRIC economy, every year they flee to shopping capitals (oh and Bicester Village, we all love a bargain) to get their fix of luxury goods.
It looks like luxury brands are still reigning in fashion and will for some time so get saving girls.