TheByte

Mikael · 10-08-2008, 02:10 PM

Oct. 8 (Bloomberg) -- In-your-face luxury is suddenly very passe.

Ostentatious taste and conspicuous consumption will make way for conservative looks and ``stealth wealth'' in the wake of the worldwide financial crisis, said Milton Pedraza, chief executive officer of the Luxury Institute in New York.

``Nobody wants to be the luxury pinata,'' Pedraza said in an interview yesterday after a global sell-off sent markets reeling from Europe to Asia. ``Who wants to be the focus of attention on greedy spending in a tremendous crisis?''

Luxury consumers will still covet extraordinary things, but they'll spend less and won't let everyone know what they're consuming, Pedraza said. That may be especially true for members of the financial industry, he said.

``If you made your money on Wall Street, you are going to be an unpopular guest,'' Pedraza said. ``You clearly need to be discreet, far more than those who made their money in, for example, technology. Even Donald Trump is going to be a little more subdued.''

Bloomberg News asked Pedraza to identify the dos and don'ts of luxury consumption during a financial meltdown. His firm surveys the wealthy regularly and sells data to clients including major luxury-goods makers.

Living in ``a huge McMansion'' is out, and buying a ``classic Colonial'' is in, Pedraza said. Owning the biggest yacht is out, and choosing an environmentally friendly model is in, he said.

``I don't think you'll want to show up in your orange Lamborghini,'' Pedraza said. `You might want to bring your navy blue BMW instead.''

Fewer Insignias

Oversize watches are no-nos, he said, while classic timepieces are de rigueur. Likewise, forget $10,000 mobile phones and buy an iPhone instead.

Insignia mania will subside as the wealthy get frugal, Pedraza predicted. That should benefit brands like Hermes, Bottega Veneta, Salvatore Ferragamo, Patek Philippe and Vacheron Constantin, he said.

``Logo-free is optimal,'' Pedraza said. ``Logo-subdued is the next-best alternative.''

Men's fashions will undergo a noticeable change, he forecast.

``The `I'm-rich-but-casual' look is out, and the `I'm- credible-and-conservative' suit and tie are in,'' Pedraza said. ``You don't want to be the most casual-looking guy in the room with a custom shirt and chinos.''

The tie will make a big comeback, he predicted, with men favoring slender styles with sedate patterns over solid bright- colored ties with big knots.

Loafers Out, Wingtips In

In the current environment, bold, multicolored shirts with French cuffs and bejeweled cuff links are ``tacky,'' Pedraza said.

Loafers -- in particular, rubber-studded driving shoes -- now seem ``flimsy'' and streamlined wingtips are the better, more substantial choice, he said.

Pedraza also said more men will start carrying attache cases as a symbol of gravitas. As for the bigger picture, the luxury expert sees a gender shift.

``Women are in as CEOs and board members, men are out,'' Pedraza said. ``Men have lost a lot of credibility.''

Bloomberg.com: Spend

Rob · 10-08-2008, 02:29 PM

This is very much as expected.

Mikael · 10-09-2008, 07:57 AM

Sure was but I wanted to post it since we earlier briefly discussed it at GCF.

Rob · 10-09-2008, 09:47 AM

Oh, I'm glad you did Mikael, I love this kind of topic.

I imagine Louis Vuitton will be hit hard by this -- I find it difficult to think of another brand that has exploited itself more over the past decade.

Mikael · 10-09-2008, 03:43 PM

Hmmm... Maybe I should change my avatar now.

j/k Although it will probably soon lose some of its effect as a sarcastic ode to the worship of status symbols. That's not to say there's not a fair share of materialist in myself.

10-08-2008, 02:10 PM	#1
Mikael Fanatic Moderator Emeritus Join Date: Nov 2005 Posts: 1,836 Thanks: 828 Thanked 415 Times in 233 Posts	Avoid Lamborghinis, Loud Logos Amid Financial Blues Oct. 8 (Bloomberg) -- In-your-face luxury is suddenly very passe. Ostentatious taste and conspicuous consumption will make way for conservative looks and ``stealth wealth'' in the wake of the worldwide financial crisis, said Milton Pedraza, chief executive officer of the Luxury Institute in New York. ``Nobody wants to be the luxury pinata,'' Pedraza said in an interview yesterday after a global sell-off sent markets reeling from Europe to Asia. ``Who wants to be the focus of attention on greedy spending in a tremendous crisis?'' Luxury consumers will still covet extraordinary things, but they'll spend less and won't let everyone know what they're consuming, Pedraza said. That may be especially true for members of the financial industry, he said. ``If you made your money on Wall Street, you are going to be an unpopular guest,'' Pedraza said. ``You clearly need to be discreet, far more than those who made their money in, for example, technology. Even Donald Trump is going to be a little more subdued.'' Bloomberg News asked Pedraza to identify the dos and don'ts of luxury consumption during a financial meltdown. His firm surveys the wealthy regularly and sells data to clients including major luxury-goods makers. Living in ``a huge McMansion'' is out, and buying a ``classic Colonial'' is in, Pedraza said. Owning the biggest yacht is out, and choosing an environmentally friendly model is in, he said. ``I don't think you'll want to show up in your orange Lamborghini,'' Pedraza said. `You might want to bring your navy blue BMW instead.'' Fewer Insignias Oversize watches are no-nos, he said, while classic timepieces are de rigueur. Likewise, forget $10,000 mobile phones and buy an iPhone instead. Insignia mania will subside as the wealthy get frugal, Pedraza predicted. That should benefit brands like Hermes, Bottega Veneta, Salvatore Ferragamo, Patek Philippe and Vacheron Constantin, he said. ``Logo-free is optimal,'' Pedraza said. ``Logo-subdued is the next-best alternative.'' Men's fashions will undergo a noticeable change, he forecast. ``The `I'm-rich-but-casual' look is out, and the `I'm- credible-and-conservative' suit and tie are in,'' Pedraza said. ``You don't want to be the most casual-looking guy in the room with a custom shirt and chinos.'' The tie will make a big comeback, he predicted, with men favoring slender styles with sedate patterns over solid bright- colored ties with big knots. Loafers Out, Wingtips In In the current environment, bold, multicolored shirts with French cuffs and bejeweled cuff links are ``tacky,'' Pedraza said. Loafers -- in particular, rubber-studded driving shoes -- now seem ``flimsy'' and streamlined wingtips are the better, more substantial choice, he said. Pedraza also said more men will start carrying attache cases as a symbol of gravitas. As for the bigger picture, the luxury expert sees a gender shift. ``Women are in as CEOs and board members, men are out,'' Pedraza said. ``Men have lost a lot of credibility.'' Bloomberg.com: Spend

10-08-2008, 02:29 PM	#2
Rob Aficionado Join Date: Sep 2005 Posts: 4,618 Thanks: 892 Thanked 719 Times in 401 Posts	Re: Avoid Lamborghinis, Loud Logos Amid Financial Blues This is very much as expected.

10-09-2008, 07:57 AM	#3
Mikael Fanatic Moderator Emeritus Join Date: Nov 2005 Posts: 1,836 Thanks: 828 Thanked 415 Times in 233 Posts	Re: Avoid Lamborghinis, Loud Logos Amid Financial Blues Sure was but I wanted to post it since we earlier briefly discussed it at GCF.

10-09-2008, 09:47 AM	#4
Rob Aficionado Join Date: Sep 2005 Posts: 4,618 Thanks: 892 Thanked 719 Times in 401 Posts	Re: Avoid Lamborghinis, Loud Logos Amid Financial Blues Oh, I'm glad you did Mikael, I love this kind of topic. I imagine Louis Vuitton will be hit hard by this -- I find it difficult to think of another brand that has exploited itself more over the past decade.

10-09-2008, 03:43 PM	#5
Mikael Fanatic Moderator Emeritus Join Date: Nov 2005 Posts: 1,836 Thanks: 828 Thanked 415 Times in 233 Posts	Re: Avoid Lamborghinis, Loud Logos Amid Financial Blues Hmmm... Maybe I should change my avatar now. j/k Although it will probably soon lose some of its effect as a sarcastic ode to the worship of status symbols. That's not to say there's not a fair share of materialist in myself.

Search Cloud

TheByte

Avoid Lamborghinis, Loud Logos Amid Financial Blues