Is luxury recession-proof? How to get and keep the bag.

Brands like Tiffany, Louis Vuitton, and Hermes cater to an upper-class echelon and therefore never ever compete on price. They aren’t interested in sales and coupons. And, they aren’t really interested in advertising because let’s face it, we are already watching them without being reminded.

So what happens in a recession when us laity don’t have the funds to even entertain these brands. If the rich get richer, their luxuries should remain intact. But, that’s not really the case. When we saw the global recession in 2008 a few brands thought they would be safe too. And, you guessed it, they were wrong.

Turns out that after the economic downturn in late 07 thru 08, spending on luxury brands worldwide dropped by a considerable amount. By 2009, some high-end department stores saw a dip in sales as high as 25%.

Why tho?

Luxury spenders aren’t going broke during a recession; they are playing the game the right way. The rich get richer because they divert their funds to areas that make more money. Instead of spending on luxury brands to consume for their pleasure, they spend that money on buying businesses that can’t survive, drop money into market research, and bring new products to the market that satisfy the needs of the public at large.

How does that help you and me… the laity?

Super simple… The current breed of bourgeoisie knows that the way to get more money is to let us lowly proletariat feel special. So, they intentionally mimic luxury brands at a price we can afford. And, they buy up all that surplus in bulk from the luxury brands that they didn’t buy for themselves and remarket it to us.

Ah… what a sneaky way to get a sale on that new LV… just gotta find a way to create a recession…

Vogue Business has luxury brands at a sustained 9% decline in value since the recession of 2008. While not everyone suffers the same, no one is immune. And, if you can repurpose a little of your cash, you can create the same opportunities as big spenders by purchasing surplus and remarketing it for a product.

Plus… that LV and Versace sale… just saying…