It had to happen at some point with the world economy in a continuous spiral downward, that even the luxury retailers such as Louis Vuitton designer products for the rich and famous are taking a hit.
Louis Vuitton Handbags Take a Hit
The problems arise because these high end retailers are not catering to lower income groups, and even the high end celebrity women aren’t buying in the continued recession. Quality products are taking a hit and all the creativity of designers who are now scrambling to produce sales by re-launching collections for the Spring/Summer season are waking up to smell the coffee.
In China luxury retailers are getting hit worse that lower priced retailers as the Chinese consumer is tightening the purse strings. Retail sales during the Chinese New Year sales in February were the lowest in 3 years. Retail surveys in major Chinese cities reported consumers are very concerned about the gloomy economy.
High End Fashion Retail Takes a Hit
The Swiss based companies of Cartier and Montblanc are experiencing the worst decline in their markets in over twenty years. Italy’s Bulgari company predicts a very challenging market for this year.
In these economic times, a Louis Vuitton handbag does satisfy as much as getting a job. When people are struggling to stay in their foreclosure homes and job losses are sending even more people into a lower income bracket- luxury handbags just don‘t do the trick. Even though the Louis Vuitton retailers have to lower their prices for products that cost under $1,000.00 with brighter colors and various patterns.
Luxury retailers would be better served with lower profit margins and to get involved in community organizations who are helping people, rather than making products that not many people can afford- even the rich and famous.
The stock market keeps trying to find its bottom and plunging to even lower depths it may continue until it has no where to go but up. The stock market has not reached that point yet with the instability in the credit and lending market.
Corporations who appear to be giving back to society by donating a percentage of sales although many believe this helps sales is not as important as the struggle to survive this economy.
The times they are a changing as someone said and luxury brands are not escaping the adverse effects of the global financial disaster.
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