The Luxury Market

While most Americans would be content with a Sony Play station 2 or a sweater twin set under the tree, for an increasing number of people mere cashmere does not say ''I love you'' with quite the same authority as pashmina. Accustomed to luxury, these new-economy swells expect the most expensive version of everything -- and are likely to get it.
The economy may be slowing and lots of dot-com stock options are underwater, but the top slice of income earners is still sitting on a huge pile of wealth and their free-flowing extravagance is expected to propel such top purveyors of gilded baubles and designer delectable as Tiffany & Company, Neiman Marcus Group and LVMH-Moet Hennessy Louis Vuitton into yet another banner financial year.
Luxury goods are, of course, not necessarily expensive in absolute terms, but they almost by definition cost more than the same products by other makers.
But high price is part of the appeal, and these products are designed to muddle the sub-lobe of the brain that makes cost-benefit calculations. Public companies have to report gross margins -- the money they take in after the costs of making their goods are deducted.

TIFFANY & CO. Tiffany 1837 Hoop earrings

TIFFANY & CO.Elsa Peretti Open Heart bracelet

TIFFANY & CO. I Love You Lock charm necklace

Thursday, November 05, 2009