Rodeo Faces More Competition, Panelists Say
Luxury consumers typically spend twice as much as the average consumer, but will a weakening economy put a damper on those high-end shoppers?
That was the question posed by speakers at the recent Luxury Summit 2008.
The March 4 event was produced at the Beverly Hilton Hotel by The Beverly Hills Chamber of Commerce.
Panelists included Emmanuel Perrin, chief executive officer and president of Americas for Van Cleef & Arpels Inc.; Judith E. Murphy, vice president/associate publisher of Departures; Liz Dunn, manager director for financial-services firm Thomas Weisel Partners; Suzanne Hader, principal of consultancy 400twin; and Jane Wells, business-news reporter for CNBC. Donald Straszheim, vice chairman of Roth Capital Partners LLC, moderated the panel.
According to the panelists, the economy has impacted luxury spending, but several said luxury consumers will continue to spend during tough times. Typically luxury spending for fashion items is more than double compared with the average, according to Thomas Weisel Partners’ Dunn.
Still, any slowdown in luxury spending is bad news for Rodeo Drive, Beverly Hills’ thoroughfare for boutiques for true luxury brands such as Chanel, Dior and Prada.
CNBC’s Wells said Rodeo will be facing increasing competition from new luxuryoriented retail centers such as Americana at Brand, which will debut May 1 in Glendale, Calif. New shopping centers may siphon off luxury shoppers on the hunt for something new, she said.
“Rodeo looks fabulous, but if you are local, will you want to go [to another place] or Rodeo?” she asked.
With more shopping options for luxury consumers, Rodeo Drive is seeing growing competition from other retail outlets. Rodeo was once one of the few places to shop for true luxury items. In the past few years, luxury has become less exclusive and easier for consumers to find. Heritage luxury brands such as Louis Vuitton have opened more stores. The company operates three at South Coast Plaza in Costa Mesa, Calif., and has one in the Hollywood & Highland shopping center in Los Angeles’ Hollywood district.
Panelists also considered international hot spots for the luxury market. One such place is East Asia. Van Cleef & Arpels’ Perrin said the luxury jewelry company opened a Van Cleef & Arpels store on the Chinese island of Macau in February. In one short week, he said, the shop met its sales goal for its first six months in business. —Andrew Asch
