LAST WORD
How Luxurious!
Do you believe the luxury market is recession-proof and continuing to grow?
by Lindsey Aspinall

I believe the luxury market is recession-proof. I think there will always be a niche for the carriage trade, especially in my particular market, south Florida, where the real estate market is booming and there's a great built-in climate. But nationwide, there will always be wealthy clientele who will always want to have expensive things. I've been doing this for 25 years and it's always been recession-proof. When the stock market dips, they may hold off for a little bit, but they always come roaring back. The wealthy can't deny themselves fine things.

—Robert Sarasohn, owner of Grove Opticians in Boca Raton, Fla.

 I feel the market will continue to expand. The reason is that the luxury business is always trying to create a financial position in the market that differentiates them from the rest. Prices for high-end eyewear have always been in the $300 to $400 range, but there are a lot of people crowding into that market. So some of us in the industry have decided to move ahead and bring in high-end products in which the price point can be anywhere from $800 to $1,500. You set a new standard for high-end spending and it sets us apart from those who sell high-end for $300 to $400. I think that even as prices get more high-end, there will still be people willing to buy. People want to set themselves apart. It's about status.

—Edward Beiner, president of the Edward Beiner Group with six stores in the Florida area

 I absolutely think the luxury market is recession-proof based on the fact that the people who want this kind of eyewear will buy it no matter what. Everyone wants great quality. Plus, people who spend a lot of money on eyewear do the same thing in other areas of their lives on things like cars and clothes. Eyewear is not just a necessity, it's an accessory.

—Jamie Berkson, licensed optician and general manager of seven Eye Gallery stores in Atlanta

Keeping It Real

Thanks to expanded licensing agreements and bridge lines, luxury items have become more available to the masses. As a result of this transition, some luxury retailers have been challenged to find ways to keep their items distinct. Provided are some tips from a recent Business Week article on how to keep your high-end offerings truly a luxury.

Stellar Service

It's hard for places like Wal-Mart to match the shopping experience offered at a Bvlgari or Bergdorf Goodman. For this reason, high-end retailers can't afford to let their deluxe customer service slip.

Limit It

When all else fails, luxury-goods purveyors can rely on limited editions to retain exclusivity. Neiman Marcus has sold out all 75 of the $65,000 Lexus GS 450H, a luxury hybrid car. But unless these limited editions are really one of a kind, they quickly lose their cachet.

Matters of the Heart

As competition grows, luxury retailers will have to start attaching more meaning to their products, says Unity Marketing's Pamela Danziger. One way is to align products with consumers' values. John Hardy, a jeweler whose work is showcased at Neiman Marcus, says his jewels are a favorite for high design as well as his environmentally friendly working conditions.

http://www.businessweek.com/bwdaily/dnflash/nov2005/nf20051129_4460_db016.htm