Luxury Trends

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There has been plenty of airtime given to the topic of the economy in recent years – and for good reason. Data indicates that “Workers in the lowest income decile [10%] faced a Great Depression type unemployment rate of nearly 31%” (source: Sum). But has the recession hit everyone equally? Not according to Northeastern University’s Center for Labor Market Studies.

In fact, unemployment among those in the top 10% income group (individuals earning more than $150,000 per year) was only 3.2% in the fourth quarter of 2009 (source: Sum). This means that “There was no labor market recession for America’s affluent” (source: Sum). Due to this phenomenon, many high end services and businesses continue to make sales because the wealthy are still actively buying.

For instance, “The more accessible labels [like Coach] have proved vulnerable, while the higher-end and classic brands, like Hermès, are still flourishing (indeed, Hermès reported an 8.5 percent rise in revenue for 2009)…today’s luxury brands must offer lasting value and/or real exclusivity— Hermès doesn’t need to court the masses, who are still pinching pennies. Luxury is making its way back to the high-end consumer.” (source: Miranda)