There were a couple of models and a show producer on my flight yesterday from Paris, all of us in jeans and looking a little whacked. Three or four nights of staying up until 2 a.m. will do that to you, and I can only imagine the client demands nowadays on a show producer. It’s ALL about money, one way or the other.
I saw Maureen Chiquet, the chief executive of Chanel, up at the Chanel studio the other day, with Lagerfeld and his crew, and we got to talking about the economy. The Asian and Europe stock moneys had fallen sharply that day, and of course people in the States are very concerned about a recession. Generally, luxury chiefs tell you business is great. I can’t help thinking, though, that there’s got to be some sense of caution even among companies that have a solid record and the attention of the affluent. So I was glad to hear Chiquet express concern. Later, I followed up by email and she said that indeed “more expensive and unique products have continued to sell, since they create desire and emotion and do not necessarily fulfill a need. In addition, we have experienced strong growth in emerging markets and feel that there is still a lot of potential. However, because of the broad and global nature of current economic problems, we could see a softening in the luxury sector, particularly in product categories with a larger distribution.”
I think the key word in her comment is “global.” It’s impossible nowadays to view the “North American market” or the “Asian market” as separate and distinct dominions. Everything is far more interconnected...
Full article by Cathy Horyn at the following link