<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Oct 12, 2008
SHOP
</TR><!-- headline one : start --><TR>Top-end brands 'recession-resilient'
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High-end luxury brands like Cartier are unperturbed by the economic crisis, as their wealthy customers, though earning less, still have very high incomes, The same cannot be said of retailers selling high-end mass consumer brands, though.
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->While most people cut back on the good stuff during bad times, the rich still have money to spend.
That is why high-end luxury brands like Cartier are not worried over the economic gloom.
Cartier, a French jeweller and watchmaker, continues to enjoy high levels of sales despite the economic downturn.
Says Mr Christopher Kilaniotis, its managing director for Singapore, Malaysia, Indonesia and Australia: 'Top-end luxury is not recession-proof, but it is recession- resilient. Usually, our existing clients will come back even during a slowdown.'
Mr George Svinos, the head of retail for the Asia-Pacific at professional services firm KPMG, says high-end luxury brands usually do not feel the effects of an economic recession.
'The very top end of luxury tends not to be affected too much. This is because wealthy people may have less income, but it is still very high,' he said.
However, retailers selling higher-end mass consumer brands are already seeing a slight slowdown.
At American accessory brand Coach, customer traffic has been down by about 10 per cent to 15 per cent since the economic downturn.
The brand also felt the pinch from the Formula One races, which forced its customers to avoid its Raffles City shopping centre outlet. The Muslim fasting month also saw its Malay customers shopping less.
Even the wealthy are not shopping as much. Says Coach's brand manager, Ms Susan Tan: 'Those who are cash-rich are still shopping, but more cautiously.'
While Coach expects sales to pick up during the Christmas and Chinese New Year holidays, it is worried that the real effects of the decline will be seen after the festive season.
KPMG's Mr Svinos says consumers who usually have to sacrifice to be able to afford luxury goods are the ones who will stop buying during a downturn.
However, some luxury markets, such as cosmetics, may even show an increase in sales during this time, he says.
'It's a cheap way of feeling better. A Chanel lipstick, for example, is not an expensive way of spoiling oneself,' he explains.
Shoppers interviewed say they have been trying to keep a lid on their spending.
Relationship manager Chantelle Lee, 32, who follows fashion trends and buys up to three luxury-brand bags a year, says she has stopped walking into shops selling luxury goods.
=> One of those bastoods who conned ah ma's and ah bek's of their life savings?
'I like to pamper myself, but with the economic downturn and increase in cost of living, I feel that I should tighten my belt a little,' she says.
Are you cutting back on your shopping? Send your comments to [email protected] <!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Sun, 12 Oct 2008 07:22:26:95---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
SHOP
</TR><!-- headline one : start --><TR>Top-end brands 'recession-resilient'
</TR><!-- headline one : end --><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
High-end luxury brands like Cartier are unperturbed by the economic crisis, as their wealthy customers, though earning less, still have very high incomes, The same cannot be said of retailers selling high-end mass consumer brands, though.
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->While most people cut back on the good stuff during bad times, the rich still have money to spend.
That is why high-end luxury brands like Cartier are not worried over the economic gloom.
Cartier, a French jeweller and watchmaker, continues to enjoy high levels of sales despite the economic downturn.
Says Mr Christopher Kilaniotis, its managing director for Singapore, Malaysia, Indonesia and Australia: 'Top-end luxury is not recession-proof, but it is recession- resilient. Usually, our existing clients will come back even during a slowdown.'
Mr George Svinos, the head of retail for the Asia-Pacific at professional services firm KPMG, says high-end luxury brands usually do not feel the effects of an economic recession.
'The very top end of luxury tends not to be affected too much. This is because wealthy people may have less income, but it is still very high,' he said.
However, retailers selling higher-end mass consumer brands are already seeing a slight slowdown.
At American accessory brand Coach, customer traffic has been down by about 10 per cent to 15 per cent since the economic downturn.
The brand also felt the pinch from the Formula One races, which forced its customers to avoid its Raffles City shopping centre outlet. The Muslim fasting month also saw its Malay customers shopping less.
Even the wealthy are not shopping as much. Says Coach's brand manager, Ms Susan Tan: 'Those who are cash-rich are still shopping, but more cautiously.'
While Coach expects sales to pick up during the Christmas and Chinese New Year holidays, it is worried that the real effects of the decline will be seen after the festive season.
KPMG's Mr Svinos says consumers who usually have to sacrifice to be able to afford luxury goods are the ones who will stop buying during a downturn.
However, some luxury markets, such as cosmetics, may even show an increase in sales during this time, he says.
'It's a cheap way of feeling better. A Chanel lipstick, for example, is not an expensive way of spoiling oneself,' he explains.
Shoppers interviewed say they have been trying to keep a lid on their spending.
Relationship manager Chantelle Lee, 32, who follows fashion trends and buys up to three luxury-brand bags a year, says she has stopped walking into shops selling luxury goods.
=> One of those bastoods who conned ah ma's and ah bek's of their life savings?
'I like to pamper myself, but with the economic downturn and increase in cost of living, I feel that I should tighten my belt a little,' she says.
Are you cutting back on your shopping? Send your comments to [email protected] <!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Sun, 12 Oct 2008 07:22:26:95---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
