| Public Relations luxury executives see no turnaround soon |
|LONDON, April 26, 2009 – A round table discussion among international public relations executives representing the luxury|
industry found little ground for optimism in the near term as sales of luxury goods around the world fall sharply due to the economic crisis, but some saw green shoots emerging next year.
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| || PureJewels|
Dominic McCarthy of London-based Neville McCarthy Associates said a consensus view among several of his colleagues from Europe and the United States, was that luxury sales had taken a 20-25 percent hit but he believes signs of recovery should filter through around this time next year.
However, he believes it will be tough for luxury goods companies to price products at the high levels seen in the past. Andrea d’Amico, Client Services Director of Milan-based Attila & Co., said we are entering a “new economy” in which many of the old rules will be gone.
The emergence of India and China as economic superpowers will change the face of luxury in the longer term, creating new markets and triggering new styles.
India is perhaps better placed than China to make the first big steps towards having a say in the global luxury arena, as its huge market is relatively unregulated, and it has the advantage of wide use of the English language.
Nathalie Carot, a director of Paris-based BMRP, said she saw no immediate signs of recovery as France went through social upheaval such as “kidnapping of bosses”, and as unemployment sapped consumer confidence.
The PR executives agreed that the re-emergence of consumer confidence around the world would be key for any recovery in the luxury industry to take hold.