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Luxury Items As Gifts

October 21, 2007 Continuing with my theme of the luxury consumer, I read in the The Economic Times that “increased global travel and brand exposure has led to a growing affinity” for luxury items as gifts.

Luxury brands such as Lladro, Swarovski and Salvatore Ferragamo have elaborate products lined up for those who are looking at extravagant choices in corporate or personal gifting.


GALLOP I $320


Full chess set in faceted Jet and clear crystal; mirror chess board. $1,500

A Salvatore Ferragamo spokesperson says, “Our customers buy expensive gifts not just for their family members but also for their close associates and friends. They also like to splurge on themselves. Gifting luxury items is the latest fad today. It is no longer enough to own a luxury item but also essential to use it as a gift item. For families too, expensive gifting has become the norm with an increase in income and the clamour for owning luxury items on the rise.”


A simple, classic slingback in posh suede. $390

I am not so sure it is “the latest fad”.  I am beginning to think there may be a “clamour” for luxury for another reason.  We are told by analysts, on talking-head TV shows, that there is no inflation; that excluding food and energy, the core rate of inflation is only 2% or so.  I believe we are seeing a movement to hard assets; things that hold value.  

I recall dating a girl in high school whose father sold Mercedes Benz automobiles.  She told me that their car had a windshield that in a head-on crash protected its passengers by popping out when hit.  In the late ‘50s this car sold for the outstanding price of $13,000!  Why that was $2,000 more than the cost of my parents house.  Sure the Benz is an amazing car and a better car today, but it can sell for over $100,000.

Instinctively, the rich are the early adopters.  They can afford it.  I think they see the dollar going lower and inflation rising and strive to protect themselves.  He who dies with the most things doesn’t win, just preserves his estate.

Thoughts?  Email them to landfair3554@comcast.net. 
You can also read more of my posts at Landfair Furniture (Blog)

Posted by Mike Landfair on October 21, 2007 | Comments (2)