The things that money can’t buy: Luxury lifestyle

by 24K Staff

Introduction

Does anyone else know that when it comes to luxury goods, bad news sells? Yahoo just released that demand for high-end clothing and accessories has dropped
12% from recent years. And consumers have been feeding the trend by buying these products less and less while the stock prices of luxury department stores continue to tank.

  1. Clothing

A study by McKinsey has indicated that high-end label brands suffer the
worst declines. Luxury brands saw a 7% drop in sales last year. And brands from
LVMH, Richemont, Prada and Burberry all suffered a 8% decline in sales.
Handbag sales declined by 3%.

  1. Homes

Luxury home builders have been sliding steadily for a few years now.
McKinsey Architects and Luxury Housing Index show that housing prices in these markets have fallen by 17% in the last 3 years. This has
already resulted in heavy job losses in the industry.

  1. Travel

The number of high-rolling leisure travelers who drive into luxury
hotels in San Francisco, Manhattan, Miami and Los Angeles containing
company-owned condos has decreased rapidly. These groups have declined by
36% in many hotels, including and not limited to
Planet Hollywood, Waldorf Astoria, Caesar’s Palace and Monte Carlo properties.

  1. Art

Two brands are at the heart of the art world: Phillips and Christie’s. But both collaborations are seeing major drops in sales, namely
because
the public has been cutting back on high-end or luxury purchases.

  1. Luxury hotels

Luxury travel also took a hard hit with hotel demand for rooms.
Luxury hotel demand has decreased 9% in London, Paris, Tokyo, Singapore as well as Los Angeles. The reports show the same increase of domestic travelers
who are basically using hotels for the basic necessity of rest and sleep instead
of “high-rolling leisure travelers who drive into luxury hotels.”

Conclusion

In conclusion, not all news is bad. Luxury demand has slowed, for a number of reasons. One of the biggest factors is that luxury tastes are changing with increased “momentum in the mass market.”
But the intention of luxury goods is not to make a profit, it’s to offer a
luxury lifestyle.

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