Economic woes boost luxury sales

Economy and fashion 2009 2010You would think that the effect of the economic crisis on the fashion industry might be immediately negative; certainly many fashion and beauty companies are seeing a downturn in sales, and luxury prices have been slashed in Japan as a result.

Not so in all countries, however, with Australian luxury retailers current experiencing a surge in sales.

The large comes courtesy of a heavily devalued Australian dollar; which has reached as little as US$0.60 in value. Bad news for Australians travelling overseas, but fantastic news for tourists with foreign money to spend.

And have they spent.

Chanel’s Melbourne boutique has seen record sales this week, to the extent where they have now sold out of all classic Chanel handbags. They company, now flying in more goods from their overseas stores to cater to demand, has seen the sales increase largely on the back of tourists from the Far East.

A similar story is to be told for the majority of Melbourne’s luxury boutiques, with average mid-week sales up near the 300% mark.

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