Luxury sector resilient in parts

Luxury sector resilient in parts
Although the luxury sector appears to be suffering from the recession, and indeed is predicted to shrink by 10% this year, some parts of the sector are thriving. Handbag-maker Hermès, whose Birkin bag retails at £4,000 upwards – Victoria Beckham reportedly owns 100 of them – is selling well, as is upmarket shoe supplier Kurt Geiger and yacht-maker Oyster Marine. These are the "strong, strong brands", that succeed because they are reassuring for the consumer to buy; after all "a Louis Vuitton bag is forever", says Claudia D'Arpizio of Bain consultancy. On the other hand brands such as Dolce & Gabbana, Dior and Chanel are finding things much tougher.
The Guardian, 24 June 2009, p23