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Stock impact report

The $1,000 Gucci T-Shirt Problem [Yahoo! Finance]

LVMH-MOET H/L/V UNSP/ADR (LVMUY) 
NASDAQ:AMEX Investor Relations: lvmh.com/investors
Company Research Source: Yahoo! Finance
The country's economic bubble had famously burst, yet Japanese clients were apparently drinking more high-end Champagne than ever before. Certain of an error in the data, I queried it with my French CEO. He gave a Gallic shrug and said: “When you are on the plane, and the plane is about to crash, you don't drink piss.” The relationship between economic conditions and luxury spending has never been linear. In boom times, luxury sales explode, but tough economic conditions aren't always bad for luxury either. Leonard Lauder called it the “lipstick effect,” the theory that economic hardship drives consumers toward small luxuries as substitutes for larger ones they can no longer afford. When you can't buy a fur coat, a Chanel lipstick provides an affordable indulgence. Boom or bust, luxury brands traditionally do well. Add global expansion, the luxury obsession of the Chinese, and a general democratization of luxury from thousands of clients to millions today, and you had a golden Show less Read more
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