Thursday, December 4, 2008

Our Economy and Luxury Items

We hear about it every day, more and more. Wall St. is creating more horror stories than Steven King, these days. This bank is failing, that corporation is filing for bankruptcy, everyone has their hand out for some financial help...and let's not even talk about the Market. It is economic chaos. So where does that leave the luxury watch market?

According to Bertram Kalisher, executive director of the American Watch Guild:
"Regardless of the economy, the world demand for handmade watches remain strong. There is no inventory. The new wealthy - individuals coming to the US from Russia, the Middle East and China - are ramping up demand, while supply cannot keep up because certain luxury goods, like expensive watches cannot be mass produced and there is a world shortage of watchmakers."

The American Watch Guild is an association of watch retailers, manufacturers and designers. They promote products by brands like Cartier, Breguet and Patek Phillipe prices ranging from $10,000 to $400,000.

Some areas of the luxury market are seeing the same sales levels as 2007 with the help of Europeans and other foreign buyers leveraging the weak US dollar. The watch has always been a sign of wealth. With this economy, one has to remember that if someone is losing money, someone else is making it, Those "new" high-net worth individuals are purchasing luxury branded goods at a rapid clip to showcase their wealth.

It may seem that with these economic times everyone is hurting, (and most are), but the luxury watch market is doing pretty well.


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