Since we spoke, things in the French proceedings have become considerably more complex. Morgan Stanley have filed a defence saying their report is accurate and that the LVMH claim is so unmeritorious as to amount to an abuse of court procedures. They are now seeking damages of Pounds 10 million from LVMH and publication of a judgment in their favour in 20 newspapers and magazines.
&nbsp,manolo blahnik;Kent keeps admirably mum about the lawsuit, although her body language whenever it is mentioned betrays her distress. She warms, though, to our theme, which is whether in these uncertain times there could possibly be a future for the luxury goods market? For luxury goods by the way, read handbags, clothing, shoes and jewellery – not staff, grand houses, race horses, yachts or even that more nebulous New Age commodity "time".
 According to Kent, the real "business" of luxury goods that has come about over the past decade and a half is primarily due to three factors: the huge wealth creation of the Nineties (thanks to the equities boom), the growth in travel (tourism and luxury goods consumption go hand in hand) and, most importantly, a determined strategy on behalf of the luxury goods houses to "democratise" luxury. It’s the last factor that has so significantly altered the face of consumerism as we know it today. It has also given rise both to the luxury conglomerates like LVMH and a new breed of savvy, tough analysts like Kent.
 "We are simply not going to see the same era of prosperity over the next five years that we saw in the Nineties," she says resolutely, in answer to the whither luxury goods question. "Luxury goods companies will need to evolve and develop different strategies as a result." This is, I think, in analyst-speak as near as you can get to the directive that luxury goods companies had better think of something pretty damn quick. As we all shelter at home (the one we cannot sell) with our ready meals and DVDs, and consider our ever-more tenuous job security, who needs a new handbag or another pair of shoes? As it happens, unless you studied the figures you might not think the market was facing its biggest crises since its genesis in the Eighties.

Related Posts Title:

  • No Related Post