Will Luxury Spending Save the Economy?
As experts in premium and luxury, we have had a unique perspective on the recent economic downturn. We readied ourselves for a significant drop in businesses as we anticipated that our industry would be hit the hardest. Instead, however, we found an actual increase in our business and a common feeling amongst our clients that they were fairing rather well.
The economic shake-down seemed to be, in effect, a sort of cleansing – removing the pretenders and reinforcing the authentic. It forced people to be more selective about their purchases, so they spent money more wisely on products and services of a genuine higher quality, rather than on many of the phony premium brands that had sprung up as a means to gouge consumers. As the economy has begun its rebound, the premium and luxury space is still driving growth, and portfolio.com asks “Will Luxury Spending Save the Economy?”
Read their insightful thoughts here:
Jennifer says:
I am totally in the belief that a market correction was required to “remove the pretenders and reinforce the authentic”. For a couple of years prior to this recession, I had been of the belief that we needed a market correction. The sooner the better, as a delayed correction would result in a larger and more detrimental downturn.
We are seeing, in Alberta, that not only are weak companies disappearing, but that companies are getting rid of the week “filler” employees that were used to just get a warm body to perform a task. “Filler” employees that resulted in poor customer service.
This economic correction really needed to happen to help ALL companies perform to higher levels for all level of customers. This includes the “no-name” to luxury brands.