Brace yourselves, it's a bumpy economic ride out there.
The Luxury Design House Without a Santa Claus:
"Marc Jacobs' annual holiday fancy dress parties are legendary on the New York fashion scene . . . His staff and friends were eagerly awaiting his costume this year at what promised to be one of his most extravagant parties yet - a Rock and Roll circus at Manhattan's Rainbow Room, but the lavish party has been cancelled by Jacobs and his business partner Robert Duffy, because of the credit crunch."
Wow. Marc Jacobs has thrown a holiday party for the last 18 years, rain or shine, so you know that the economic s**t has got to be hitting the designer fan. For an extra kick of sober, take a look at this article about vacant storefronts on New York's Madison Avenue: Madison Avenue Takes Hit From Economic Troubles.
Video clip below from the Marc Jacobs holiday party in '07 (obviously, happier times):
Jewelers are also seeing their sales numbers drop: Sales of high-end jewelry lose their luster: "In Manhattan's famed Diamond District, Wall Street bankers have been known to splurge their bonus money on flashy jewels at Ultimate Jewelry Designs. But Gem Sezgin, one of the store's longtime employees, says big-ticket items have lost their allure among New York's high-rollers . . . Even the smaller, independent jewelers are having a hard time ringing up pricey items, especially after the meltdown on Wall Street left thousands without jobs. Between March and August, 19,000 jobs were lost in New York's securities and financial activities sectors, according to the New York Federal Reserve."
Even Patrick Thomas, chief executive of the allegedly recession-proof House of Hermès, said that sales growth this year would be lower than expected: "We see a general sales slowdown in all countries. The toughest period will be between now and Christmas."
Analysts said that the warning by Hermès was likely to send shockwaves through the luxury goods sector, because if the Hermes customer isn't continuing to spend, then that means no one is spending.
Video clip below of the Hermes Spring/Summer 2009 collection:
Can you hear the sound of a fashion collection screaming if there's no one there to buy it?
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