The 150 years prison conviction of BERNARD MADOFF, who pulled off the largest financial fraud in the world, through its ponzi scheme has dominated headlines in media all over the world. While Madoff apologized in court, many of its victims will never be able to recover financially. From celebrities to middle class people, Madoff’s clients lost from life savings to properties, some in the court ... read more

Swiss Federation of Luxury Watchmakers (Fh) has annouced in a recent statement that the luxury watches sector is more affected than the one of jewelry. According to the chief executive of Fh, only those watchmakers which will continue investments will survive. The statement regards research and finding new procedures and materials. ... read more

According to our in depth market research, in 2009, Romania has over 9.000 luxury consumers, compared to 11.000 in 2008. Our luxury consumer profile criteria is a minimum yearly income of EUR 500.000 and an yearly budget of minimum EUR 50.000 on luxury goods and services, on a returning basis. The drop is given by the real estate crush, only those with diversified business areas surviving.

CARTIER, ST. DUPONT, LA PERLA are among luxury brands with an oversized presence in a rather small luxury market like Bulgaria, mainly due to the push by the brands themselves. Without taking into account the realistic potential of a market the size of Bulgaria, such prestigious international brands have opened mono brand stand alone locations in the capital city of Sofia. By contrast, neighbouring ... read more

The EU diplomacy chiefs agreed that visas for Serbia citizens should be suspended until the end of the year. This was decided at the meeting in Luxemburg yesterday. The two-hour dynamic debate was led about de-blocking of the transient trade agreement, too. This measure brings Serbia closer to EU integration which would be an added stimulus to the Serbian luxury market, eliminating import taxes and duties. ... read more

CPP Management Consultants LLC, sole Central and Eastern European management consultancy specialized in luxury, has conducted a survery among major luxury fashion and accessories retailers in Ukraine during May 2009. The results have confirmed an average drop in sales of 20%, mainly on mono brand distribution. Most affected seems to be the Gucci Group brands which are present through a unique ... read more

An article featured in the Financial Times, written by Jean-Noel Kapferer and Vincent Bastien warns against the use of common marketing practices in the luxury industry, which should stay away from these strategies in spite of all warnings from the market.

Patek Philippe has recently confirmed for CPP that the expansion strategy does not include countries in the Eastern European markets, at least no sooner than 2011. Not only the international crisis, but also lack of international distributors might cause this decision. Patek is specialized on luxury watches and accesories, considered to be a representative brand for these luxury segments. In the ... read more

LOUIS VUITTONs latest ad campaign features three of the worlds most famous astronautes, thus making an abrupt turn from the pop celebrity campaigns, Madonna being the latest in a series of star campaigns. The world financial crisis has determined many top international luxury brands to reconsider their positioning, by re-discovering their heritage, intelectual values and sustainability. The new ... read more

GRAND HOTEL REX, MAMAIA, VEGA are the only 5 star category hotels on the Romanian BlackSea side coast, all of them located in Mamaia. None of the three hotels would qualify for a higher rating than 4 stars in any western European resort town.

Gucci’s new chief executive officer, Patrizio di Marco, said he’s fighting the recession by cutting production, making fewer styles to reduce costs, and bulking up the luxury label’s mid-priced range. Di Marco said he’s refreshing goods made with the 88-year- old brand’s interlocking-G logo, adding crocodile and leather trim to printed-fabric purses priced between ... read more

In a city with no dedicated luxury streets or areas such as Bucharest we welcome the emerging of a new concentration of premium facilities in the immediate vicinity of the Athenee Palace Hilton hotel and the landmark building of the Athenaeum, the most famous concert hall in Romania. It all started with several cafes and restaurants such as Byblos and Galeron and then small concept fashion shops, to ... read more

CBREs latest hotel analysis in Central and Eastern Europe reveals the fact that most striking ADR (average daily rates) falls year-on-year were recorded in Warsaw (-21.6%) and Bucharest (-23,6%). In both cases the national currency weakened significantly against the US dollar and the euro. In this region Bucharest suffered the greatest slump in occupancy rates, falling by 26.4% in the first quarter of ... read more

We cannot help but notice the constant media coverage in the Romanian market indicating the international crisis as the main and only reason for the decline of the local luxury fashion and accessories market.

An unprecedented scandal at FOUR SEASONS Aviara in San Diego USA between hotel owners and the FOUR SEASONS management company has drawn attention to the deep and dramatic issues facing the luxury hotel market worldwide. The international crisis which has brought a decline of up to 16% in occupancy at all major worldwide luxury hotels seems to add pressure on the relationship between owners and luxury ... read more

The Ukraine, once the leading luxury market in the region, after Russia, continues to be heavilly affected by the international crisis, with little hope for any recovery earlier than 2011. Moody’s Investors Service has downgraded Ukraine’s foreign and local currency government bond ratings to B2 from B1, and assigned a negative outlook, mainly to reflect the continuing fragility of ... read more

In a recent article, COTIDIANUL publication made a top out of the best-paid pensions in Romania. If until recently, the public was informed about the incomes of representatives of the parliament and state dignitaries, now is the high time to find out about luxury pensioners in Romania.

Salaries in luxury retail, especially in fashion and accessories, have dropped by 15% in Q1 of 2009 in Romania, Bulgaria, Hungary and Czech Republic. Salaries in Ukraine and Russia have seen a drop of up to 20% in the same period.

The worst has yet to come for the luxury auto market in Romania. With sales down more than 50% in the first quarter of 2009, compared with the same period last year, the major dealers face another blow. This time, from major dealers in Germany, Austria and Hungary that often give higher discounts for luxury cars than the Romanian dealers of the same brands. Flexibility comes with volumes, especially in Germany ... read more

In a recent trip to London and Paris, strolling down Sloane street, Bond Street, Faubourg St Honore and Avenue Montaigne, we couldnt help noticing the contrast between the empty Dolce Gabbana and Roberto Cavalli stores and the busy Gucci, Hermes or Louis Vuitton stored. We wondered, was it just the crisis to blame or was it also a identity crisis of the 2 reputed Italian brands, coupled with poor strategic ... read more