The crushing pessimism of Europe’s financial situation cannot be overstated. The Eurozone may recover from the current crisis (albeit in a different guise, hopefully) but it may also ‘infect’ other single currency markets as well. Regardless of speculation, the situation is pretty dire. But, have no fear gentle reader – there is magical village amongst us, where the goblins of fiscal ineptitude can’t reach, and floating dreamlike above the writhing masses is an imaginary village called ‘Poshville,’ – a consumer lily pad untarnished by the stink of reality, and the good times just keep rolling, even through the tumult of the last two years.
BBC business reports that luxury items like Louis Vuitton and Prada are blooming quite nicely on the proverbial pile of s**t that is Europe’s single currency. Like everything in life, when one person is losing, another, you can bet, will be gaining. And so it is with posh goodies. For the fashion houses who are producing their goods in countries feeling the decline of the Euro, like Italy and France, production costs keep falling, and with their markets mainly based on exports to countries like the US, Asia, and even the UK, it’s a good time to be ‘bling.’
In fact, Louis Vuitton have just opened a mammoth new flagship store on New Bond Street and are capitalizing on this increasingly polarized economic climate. Cartier, Montblanc, and Burberry have all seen profits rise almost 25% in the last year, and the new crisis in Brussels doesn’t seem to be raining on the spending parade. But, as was stated in the piece, the only markets that are a longer-term ‘safe’ bet are those in Asia, and that seems to be the same story whether you’re selling car tires or diamond-encrusted loo seats. Go east, young man, go east!