Luxury items

29 October 2008

Blog pic By Jake Kanter

Many reports recently have suggested that the super-rich have not felt the effects of the financial crisis. Take Chelsea football club owner Roman Abramovic for example. The Russian tycoon is said to be embarking on a new project to build a £200 million super yacht, complete with radar and weaponry to ward off pirates and terrorists.

However this story in the FT today suggests even people with mega money are cutting back their spending on luxury items. Consultancy Bain & Co expect sales of luxury goods to fall from this year's record high of €175 billion (£139 billion), to the still high figure of €163 billion. Not a significant difference you might think, but still nearly one fifth of the UK government's recent £50 billion bank bailout.

Have you had to make cutbacks on luxury goods and services in your organisation?

What qualifies as a luxury good or service?

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