LVMH, the world's biggest luxury conglomorate, has binned plans for a new Louis Vuitton megastore, which was to be opened in Tokyo's Ginza district. While it has been predicted that profits in the £165 billion global luxury market should resist going into freefall for the moment, LVMH share values are in decline, with the conglomorate's shares dropping by 44 per cent in 2008.
We thought the 1980s was the time when self-interest reigned supreme: apparently not. There are those in the trade who believe the future of the industry is looking bleak, and that a decade of greed and easy money is to blame. Alain Nemarq, chairman of prestige jewellery firm Mauboussin, said that luxury brands were seduced by the notion that, when it came to prices and profit margins, the sky was the limit: “The pursuit of exclusive trophies ... is finished,” he wrote in Le Figaro last week. “We will now return to reason, decency and discretion.”
We thought the 1980s was the time when self-interest reigned supreme: apparently not. There are those in the trade who believe the future of the industry is looking bleak, and that a decade of greed and easy money is to blame. Alain Nemarq, chairman of prestige jewellery firm Mauboussin, said that luxury brands were seduced by the notion that, when it came to prices and profit margins, the sky was the limit: “The pursuit of exclusive trophies ... is finished,” he wrote in Le Figaro last week. “We will now return to reason, decency and discretion.”
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