Monday Miscellany and Confident Consumers

If you just happen to pick up the December issue of ELLE magazine and you happen to see the Beladora ad, let me know what you think about it.

Oh...and what else did I want to mention.
National Jeweler has posted an article stating that consumer confidence is increasing.
I'd have to agree with that statement given the prices on what I see being sold at auction.

Take these earrings, for example.

Van Cleef and Arpels Lion Doorknocker Earrings

This pair is being sold on Beladora.com for $8750.

A pair of the same VCA Lion Doorknocker earrings

except with diamond eyes instead of emerald eyes

sold two weeks ago Christies New York sale for $18,750.

Obviously, there must be a lot of consumer confidence out there if estate jewelry buyers are willing to pay $10,000 (114%) more at Christie's auction for basically the same earrings.

( you know what I'm thinking don't you....ARBITRAGE!)

Also, at the same Christie's auction a gold and diamond evening bag, unsigned, sold for $20,000 while the Boucheron gold and diamond evening bag on Beladora was priced at $19,750.  Did I mention that the Beladora bag was Boucheron....and yes, it sold (with a discount) right after the auction.

At any rate, I don't know who was bidding at Christie's but it wouldn't surprise me if some very wealthy Chinese were doing the buying.  After some 80 years of pent up demand, everyone is expecting the Chinese to dominate high end luxury goods purchases, like the Russians did a few years ago, and the Middle Eastern Royals before that.

There are new fancy-schmancy stores being built now on Rodeo Drive, (Tom Ford, Stephen Webster, Badgley Mischka, etc...) that will open for the holidays, so high end businesses are investing in new stores.  Obviously these Luxe businesses are confident.

BTW, Gold Sets A Record Price ...again
Investors looking for safer places to stow their assets pushed gold to a record price above $1,400 an ounce Monday as they become more worried about the global economy.


A combination of issues have created fresh worry among investors: Ireland's debt difficulties and two key global summits where leaders of major industrial and developing nations are discussing currencies, free trade and ways to help the world economy.



Also in the back of investors' minds is the prospect of inflation stemming the Federal Reserve's multi-billion bond-buying program.
I'm wondering, do you think that consumer confidence is increasing?

Is This The End Of The 'It' Bag?

Loewe's Papelle Bage $1045

Perhaps my prediction two years ago of the end of the 'It' bag was premature, but at least one Luxe house is moving in that direction.

From the WSJ

The Anti 'It' Handbag

From 2005 to 2007, Stuart Vevers was known for creating showy studded and tasseled "it" handbags, transforming staid British brand Mulberry into a hot contemporary label.

Now he's headed in the opposite direction.

Well this sounds promising

To do that, he's been leaning toward simplicity over bling, functionality over flash. One of his newest creations: a leather version of an ordinary brown paper grocery bag for about $1,045. He's making a point of using the same bag shapes season after season—the opposite of "it" bags' short fashion cycle. And he's made sure that Loewe bags are lightweight, under two pounds. "It's kind of taking the bag back to its purest functionality," Mr. Vevers says.

I appreciate the end of the wasteful and over consumptionist (is that a word?) habits encouraged by the purposefully designed short fashion cycle,

but isn't this just the same marketing strategy of Hermes with their Birkin and Kelly bags?

I can only hope that Mr, Vevers will be as successful with his anti "It" bag designs for venerable Spanish luxe brand Loewe, now owned by LVMH, as Hermes was with the Birkin design

but can he please come up with something better than a $1000 grocery bag look alike.

LVMH - Why Is This Man Smiling?

I've always thought that we lived in a world with an oversupply of luxury goods and that in the event of a deep recession a strong correction was bound to hit the large luxury goods conglomerates. Apparently I was wrong.  But I do wonder, where does all the growth come from? China?

Yes, I'd be smiling too if I were Bernard Arnault

From the WSJ
LVMH First-Half Profit Soars, Showing Luxury's Return
PARIS–French luxury goods behemoth LVMH Moet Hennessy Louis Vuitton Tuesday reported a 53% jump in first half net profit, heralding a strong return of high-end consumption and, in a departure from cautiousness seen in previous quarters, expressed confidence in the rest of the year.
All divisions, from perfume to wine posted double digit sales growth with the highest increase coming from watches and jewelry, up 28%... 
not that you asked but

The Christian Dior Group (Paris:CDI) recorded revenue of 9.5 billion euros in the first half of 2010, an increase of 16%. Organic growth (at comparable structure and exchange rates) stood at 14% compared to the same period in 2009. The Group performed particularly well in Asia, the United States and Europe.

Profit from recurring operations in the first half of 2010 increased by 33% to 1,812 million euros.

Group share of net profit increased by 68% to 422 million euros. 

Is Luxe Shopping Over?

Is Luxe out?
From New York Magazine
Kelly Cutrone: ‘Fashion Luxury, Forget It. It’s Over.’

Here is her quote...do you agree?

Here is what I think is the future: Street life and
life style. Style is in; fashion luxury, forget it. It's over. Gucci, Vuitton,
Hermes ... all those places are really great, go for it. That business exists in
a city called Paris, France. That's where that is. Those businesses will
continue. Retail business, pretty much over. I think people who sell to retail
companies are people who can't afford their own stores. The poor boys — Old
Navy, J.Crew, Gap ... they already knew that and aren't wholesaling. Editorial,
magazine, we are going to say buh-bye to them as we know them. They will still
exist but everything is on the internet.

Meanwhile over at 24/7 wall street we've got an article on 10 brands that will disappear. The demise of Zales has been predicted for years but Moodys?

Will luxe brands be next?

(and why do I have problems with the block quote function)