While many retailers are cutting back on advertising, the high-end luxury market is expanding. The wealthy are still buying high ticket items and those looking to sell those items are reaching out in a big way. This is being driven by wealthy Russians and Indian and Chinese seeking luxury items.
Advertising has remained weak in industries like corporate finance, technology, recruitment, property, mortgages and personal finance which remain under pressure. This offset has resulted in a boost in the luxury advertising market.
Tiffany increasing its UK advertising spend by £200,000 to £1.9million in the year to last June, Louis Vuitton luggage increasing UK advertising spend from £67,000 to £1.7 million, the handbag-maker Radley raising its spending from £326,365 to £953,044 and Jimmy Choo, the shoe designer, increasing its advertising spend by about £50,000.
This is further emphasised by the beauty industry. Clinique increased spending on its premium cosmetics range to £2.1 million, up from £1.3 million the previous year. L’Oréal increased spending on its premium cosmetics from £344,000 in the year to June 2007 to £1.25 million in the past year.
Top-end hotel advertising has been equally buoyant in the year to June 2008. Mandarin Oriental was up to £457,182, from £395,812 and Ritz Carlton increased spend to nearly £300,000 from £175,851.