Luxury retail defies slump by selling things only money can buy
Tony Gosling
tony at cultureshop.org.uk
Sun Jun 24 22:50:24 BST 2012
Emacs!
http://www.dailymail.co.uk/news/article-2162697/Jimmy-Carr-tax-evasion-After-attack-avoidance-David-Cameron-backs-down.html
Cameron family fortune made in tax havens
http://www.guardian.co.uk/politics/2012/apr/20/cameron-family-tax-havens
Luxury retail defies the slump by selling the things only money can buy
From historic hotels to private jet showrooms,
the business of catering to the super-rich is still booming
http://www.guardian.co.uk/business/2012/jun/24/luxury-retail-defies-slump-things-only-money-can-buy
http://www.911forum.org.uk/board/viewtopic.php?p=161385#161385
Terry Macalister and Zoe Wood - The Observer, Sunday 24 June 2012
Want to fly a fighter jet at 500 miles an hour
just above the ocean off Cape Town, drink
champagne inside a glacier halfway up a Swiss
mountain or host a five-a-side football game on
the deck of a battleship complete with England
star for your child's birthday?
The price may be prohibitive for most £5,000,
say, for the Top Gun experience alone but
business is booming for Red Carpet Enterprises,
the London-based events company that aims to
tickle the fancy of the most jaded super-rich.
Red Carpet is not alone in surfing the waves of
cash that are still washing round those parts of
the British capital that are relatively immune to
double dip recessions, eurozone crises and cuts in public sector spending.
Italian luxury brand Bulgari has just opened in
London what it claims is the first newly-built
five-star hotel for 40 years, where for £700 per
night you can apparently enjoy an "uncompromising sense of excellence".
Around the corner in the same part of
Knightsbridge, The Jet Business has recently
opened what it claims is the world's first
executive plane salesroom, where you can choose
your new aircraft inside a full-size, mocked up interior of an Airbus.
And all of this is a stone's throw from One Hyde
Park, the "oligarch silo" where a penthouse suite
can set you back £140m, but where you get
SAS-trained security staff as well as the ubiquitous gold taps thrown in.
Last week the annual World Wealth Report produced
by Capgemini and RBC Wealth Management said that
the global population of millionaires stood at 11
million an elite club whose finances were
riding out the financial storm, with their assets
declining by less than 2% to $42 trillion
(£27tn). If there was a surprise, it was only
that the Asia Pacific super-rich outnumbered
those in north America for the first time in 2011.
A recent luxury-goods market study by Boston
Consulting Group predicted that spending on
yachts, designer frocks and safaris would hit
nearly £1bn this year. But the study identified a
shift in spending patterns among the wealthy, who
are increasingly keen to buy luxury "experiences"
rather than add to their wardrobes and car
collections. More than half of the £900m spent on
luxury goods last year bought one-of-a-kind
holiday packages or stays in exclusive resorts
such as luxury goods group LVMH's hideaway in the Maldives.
"It's all about storytelling," says Robert
Gaymer-Jones, chief executive of the Sofitel
chain, which, following several years of
investment by French owner Accor, has been recast
as a luxury brand complete with Hermès toiletries
in the en suites. He points to hotels such as the
Sofitel Legend Old Cataract in the Nubian desert,
where Agatha Christie wrote Death on the Nile.
Visitors there, he says, feel like they are going
back in time: "Our clients don't want an ordinary experience."
Making the dreams of the super-rich come true has
proved to be a successful second career for Alan
Rogers, a former general manager of Luton
Airport, who now lives on a 17-acre estate in the
Cotswolds complete with its own lake and manor
house. The founder of Red Carpet says he has
fewer corporate clients these days, as executives
particularly those at banks are frightened of
being accused of excess when many of their
customers are struggling financially. But the
market for the "high net-worth wealthy" is still
the same, he reports, and he says he has never
been asked for an exotic event or trip that he has been unable to fulfil.
"We organised for people to launch their own
rocket at Kiruna in northern Sweden, and held a
champagne reception on the helipad of the
Peninsula Bangkok. If it's not physically
impossible, or illegal, we can do it."
Steve Varsano, founder of The Jet Business, has
the same message. He spent a fortune decking out
his sales office off Hyde Park, but will fly
anywhere at the drop of a hat to sell planes that
cost anything from less than $18m to over $80m.
"Business at the top end of the market is
excellent, extremely strong," he reports, with
Russian oil executives, Saudi princes and
American technology entrepreneurs always game for a new "time machine".
Nothing is too much trouble: the Arab buyers may
want seats that swivel to face Mecca, while the
Chinese may want silk carpets and the Brits a
replica of an old country pub. "Certainly what we
are seeing is the buying of bigger and
longer-range aircraft so that the guy in Mongolia
can do his business with the oil guy in Nigeria," says Varsano.
The biggest growth in demand, perhaps
unsurprisingly comes from China up some 800%
since 2003 but there are still only 150
executive jets registered in China and 1,000 in
the whole of Asia compared with 450 in England and 11,000 in America.
Jets are now advertised in numerous magazines for
the super-rich such as the Robb Report and the
new periodical Elephant Lifestyle slogan: "Hit
Big, Live Large" which claims to be the "luxury
living magazine for energy tycoons". It offers
yachts, sports cars and even islands all priced neatly in barrels of oil.
Private Islands, a luxury estate agent, says that
business slowed dramatically during the recession
but has picked up strongly over the last year. It
is currently marketing the $18m "Cebaco private
biosphere" off the coast of Panama, which boasts
"palm-fringed coves with sandy beaches, cascading
waterfalls and dramatic rock formations".
"We have seen an increase in inquiries from
potential buyers as well as a healthy number of
new islands coming on the market," says chief
executive Chris Krolow, who adds that he has a
number of islands in the $10m-plus range under
contract. "The general feeling is that island
prices have finally bottomed out and investors
are feeling that this is a good time to buy. This
is a very exciting time in the island world."
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