There has been talk of ‘green shoots’ in this economic recession over the last couple of months. Often referring to property, automotive and high street retail sales, very few have taken note of luxury good growth. Whilst most cut back on luxuries such as dining out, buying little indulgences at the supermarket and canceling gym memberships, many are investing. According to figures released yesterday, Italian luxury goods consumption is stable, an improvement in June from a negative May. There is further hope that sales will continue to rise through August. Houses and labels across Italy will be relieved to hear this news from Italian luxury good association Altagamma and expect sales to last until Christmas at least.
With Gucci continuing to produce some limited edition accessories, such as the London Bag, as well as increasingly conspicuous items of consumption, their sales under Frida Gianni have increased steadily. However, there has been much gossip in fashion circles that her refreshing rule after a regime from Tom Ford has made the house more accessible.
Many houses, such as Louis Vuitton, have increased their retail prices by as much as 10% which has, springily, helped increase revenue in the past quarter. With consumers intelligently purchasing investment or classic pieces, figures from many a house suggest that conspicuous displays of wealth are being shunned by followers.
Prada (along with Mui Mui), Versace and Dolce and Gabbana have also seen promising rises since May, yet have not followed the French in discreet branding. Could this be two fingers up to the recession? There has no bigger gap between dream and luxury, reality and the ordinary until now, but with news such as this, it’s wham, glam gracia ma’am for the consumer and retailer alike.