Economy Tanks, Luxuries Boom

I walk by Louis Vuitton, Jimmy Choo, Barney's, Bulgari, and Gucci stores pretty much every day on my way home from work. I couldn't help but noticed when I was shopping in Louis Vuitton last Saturday that the economy didn't seem to be having a huge affect on the store's traffic - it was downright bustling.

So just how is the economy affecting luxury goods makers? Depends on just how luxury you're talking about.

Is Bulgari selling as many half-million dollar gems? No. But the LVMH (Louis Vuitton Moet Hennessy) company reported a 6% increase in business during the third quarter. And it's not just people drowning their sorrows with cognac and champagne that's driving the growth, Louis Vuitton sales are through the roof - on certain products, mind you. Apparently luxury products that aren't ostentatious are all the rage, as flagrantly spending obscene amounts of money on a suitcase right now seems... distasteful. So LV's fresh line of black on black designed products came just in time.

In fact, the biggest affect the slowdown seems to be having on this market is to the people who run the companies. They're selling off jets, and, horror of all horrors, even cutting back on their vacation properties during the hard times. Not because their hurting for cash, of course, but because they saw the "Wax" job other executives received before Congress this week and would prefer to avoid the same treatment. So shop away, just don't be too flashy with the logos.