Luxury consumers just got a little more demanding: while they still love their favorite high-quality brands, they’re liking them at lower prices. Will it help or hurt the luxury exchange traded fund (ETF)?
Now the luxury consumer is not only demanding a good product for a lower price, but at the very at least want to understand why the product commands the price it does. Christina Berk for CNBC says for instance, Saks(NYSE: SKS) has been adapting to the current environment by focusing more closely on customer service and enhancing the experience of shopping at its stores. This has included hosting events where shoppers can meet designers.
The challenge is for brands to succeed in this environment is to remain accessible while maintaining some mystique. [Why should you incorporate a luxury ETF into your portfolio?]
Meanwhile, the recession isn’t hurting one big jewelry name. Luxury jewelry designer Tiffany & Co. (NYSE: TIF) reported that total sales were up 17% in November and December, while same-store sales were up 12% in the same time frame. Is Tiffany’s doing something magic, or is the consumer spending slump over?, asks Spock Picks on Benzinga. [Would a luxury ETF be worthwhile?]
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- Claymore/Robb Report Global Luxury (NYSEArca: ROB): Tiffany is 2.8%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.