Thursday, April 1, 2010

Newsweek Special Report: The Future of Luxury

This week's Newsweek has a Special Report on the luxury industry titled "The Future of Luxury". It appears that during the recession, brands like Burberry and Hermes made profit by emphasizing their classic products. As the CEO of Hermes US operation put it: "Hermes isn't about trendy. It isn't even a fashion house. We are a house of craftsmanship". Whatever you call it - craftmanship, an investment buy - Hermes knows how to spin itself out of the recession. The author also mentioned that "during downturns, people don't stop spending, but they do become much more conservative". A woman is more likely to buy one bag a year instead of two, but now she would go for the classic and more expensive version. I call it economies of sanity ;).

1 comment:

  1. It's so true. They're all about the timeless qualities.

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