Money and the bag

The great actor-director Orson Welles reckoned living in the lap of luxury was terrific except "you never know when luxury is going to stand up".

- Jane Clifton

Given the growing list of adverse world events, luxury should be halfway out the door now. Two actual wars and two possible - the Houthis and China versus Taiwan plus a Trump-load of aggro building in the United States should surely focus consumers' minds beyond the latest It handbag and more bling for one's Crocs.

Global inflation is still gnawing the economic scenery and China's growth mode has gone from "charge!" to "a cup of tea and a lie-down". The global labour shortage is undiminished, as are energy prices and housing unaffordability. An Armani blazer can warm one up only so much.

Accordingly, signs had begun to emerge that the US$390 billion (NZ$640 billion) luxury personal goods sector was in decline.

Amid slowing sales and profit warnings, brand merchants were changing ownership at massive discounts. Saks Fifth Avenue couldn't pay its suppliers for several months.

This made sense, as pandemic lockdowns had pumped sales to outlandish heights. Unable to spend on travel, dining and entertainment, consumers splurged record amounts on high-end merchandise.