A Purse With Prestige? Leiber, Hermes & Prada Top The List

Want to impress someone this holiday season?
Then clearly the way to do it is by giving (or sporting) a Judith Leiber, Hermes or Prada handbag.
Can't afford those? Well then there are 23 others on the list. Read on...

NEW YORK, NY--(source: Marketwire) -

High net-worth consumers rated Leiber the most prestigious handbag brand in the 2007 Luxury Brand Status Index (LBSI) survey from the independent New York-based Luxury Institute (www.LuxuryInstitute.com).




Leiber's handcrafted bejeweled creations --a few of which are shown above (click pn them to enlarge)-- were praised by respondents as perfect show-stopping accessories for that special occasion. The brand scored highly with women over age 45 and those with net worth in excess of $5 million. Hermes and Prada handbags were ranked second and third, respectively.

One of my personal favorites of Leibers' this season: The Karma Buddha Crystal handbag:

Above: Karma Buddah in multi colored Austrian crystals with gold accents. Includes matching satin gold coin purse and double sided mirror. Length: 4.6", Height: 5.4", Depth: 2.6". Imported.
JU-M28541
* Ships within 1 business day (M-F 9-10)
* Made in USA
price: $3895.00
Buy it here.

"Handbags have evolved from utilitarian accessories to coveted collectables. Not only do today's wealthy women want to communicate their sense of style and sophistication, but also their individuality. By carrying a handcrafted handbag, they show they can afford to be uniquely exclusive," said Milton Pedraza, CEO of the Luxury Institute.

One of the classic and most prestigious handbags of all time is the Hermes Birkin Bag:



Looking for an authentic Hermes Birkin Bag? Look here.
Or at Hermes, of course.

"Individualization and customization is a trend that is popping up in a range of diverse categories and serves to separate the mass-class from the truly wealthy," Pedraza added. "Our 'voice of the high net-worth consumer' surveys from the impartial Luxury Institute provide important endorsements for luxury brands and the consumers they serve."

Following are the 26 handbag brands that were rated in alphabetical order (with links to their sites):
1. Bottega Veneta
2. Brighton
3. Burberry
4. Chanel
5. Chloe
6. Coach
7. Cole Haan
8. Dior
9. Dolce & Gabbana
10. Dooney & Bourke
11. Fendi
12. Ferragamo
13. Furla
14. Gucci
15. Hermes
16. Kate Spade
17. L.A.M.B.
18. Leiber
19. Longchamp
20. Louis Vuitton
21. Marc Jacobs
22. Michael Kors
23. Miu Miu
24. Prada
25. Ralph Lauren
26. Yves Saint Laurent

The proprietary Luxury Brand Status Index (LBSI) survey is the only measure of the prestige of leading brands among wealthy Americans. A national sample of 783 wealthy American consumers, with an average income of $305K and average net worth of $2.2 million, was surveyed online. Survey results are weighted to match demographic and net worth profiles of the same audience according to the latest Survey of Consumer Finances from The Federal Reserve.

About the Luxury Institute
The Luxury Institute is the uniquely independent and impartial ratings, reviews and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications and research that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the Luxury Board (www.luxuryboard.com), the world's first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs. To reach the Luxury Institute, please call 646-792-2669 or go to www.luxuryinstitute.com.

Where to get some of these fabulous handbags without paying full retail?

Try these:
Ebay, of course.
Bluefly
eluxury
Karen Kooper
Euro Bella Collections
Good Cost
am pm fashion
Unusual Threads
smart bargains
Rodeo Drive Resale
efashionhouse

Can afford them even at a discount?
Then rent one here at Bag Borrow or Steal.

Consumers Starting to Tighten Their Belts (especially if they're Coach)

Coach and Nordstrom are among the luxury retailers warning of a slowdown, reports Fortune's Suzanne Kapner.

(Fortune) -- It's not just the Wal-Mart (Charts, Fortune 500) shopper who's feeling pinched.

Worried about the health of the economy, affluent shoppers are increasingly thinking twice before splurging on new handbags or designer clothing, analysts and industry executives say. Their hesitation is sending ripples of concern through the lower rungs of the luxury market once thought impervious to a slowdown.

Nordstrom (Charts, Fortune 500) and Coach (Charts) are among the upscale companies that have warned of weaker-than-expected sales in recent weeks, suggesting that the heady growth of recent years may finally be hitting a wall of consumer anxiety tied to a topsy-turvy stock market and a mortgage crisis that is threatening to engulf the middle class.

Pam Danziger, the founder of Unity Marketing who interviews 1,000 consumers every three months for her luxury tracking study, said that the "mass affluent," or those with household incomes $75,000 to $150,000, curtailed luxury purchases by 20 percent in the most recent quarter. "That's the biggest drop we've seen since we started collecting this data in 2004," Danziger said.

If the slowdown continues, luxury retailers could be hard hit. To appeal to a broader demographic, companies from Tiffany to Valentino have courted mass affluent shoppers with new lines at lower prices. The mass affluent account for 23 percent of households, compared to less than 2 percent for those with incomes upwards of $250,000, according to the U.S. Census Bureau.

These households, with incomes of $75,000 to $150,000, make up 23 percent of the population, and it's "the marginally wealthy who are feeling a bit less well off," said Milton Pedraza, chief executive of the Luxury Institute, a research group that studies behavioral habits of the rich.

Even the rosiest scenarios expect luxury sales, which now total $226 billion worldwide, to slow slightly from the torrid pace of recent years. Bain & Co. predicts nominal sales growth of 7 percent to 9 percent, slightly less than the 9 percent growth of 2006. At the same time, much of that growth is now coming from emerging markets in India and China, not from the United States.

"While it would be inaccurate to say there is a major slowdown, the luxury market has cooled a bit from the peak levels we had seen," said Stephen Sadove, chief executive of Saks (Charts).

Sadove pointed to a strong correlation between luxury shoppers and the stock market, particularly among men. "In early September, when there was turmoil in the markets, we saw slower sales in our men's business, though it has since bounced back," he said.

The Age of McLuxury

Coach spooked investors on Tuesday when it said it was seeing fewer than expected shoppers in stores in California, Florida and the Northeast. The company is a bellwether for the mass affluent, having helped create the category when it reinvented itself several years ago as a status brand minus the sticker shock.

After years of double-digit sales growth, Coach investors are beginning to worry about a slowdown. The stock is off 32 percent in the past six months. As of midday, the shares were trading at $36.88, near their 52-week low of $36.15.

Above: chart shows COACH stock price history for the past 6 months

Though still priced well below designer handbags, Coach has quietly gotten more expensive, a fact that may make it "less accessible to a certain demographic challenged by higher fuel costs and lower housing values," wrote Todd Slater of Lazard Capital Markets in a research note yesterday. Slater estimates that the average Coach bag has seen a price increase of 30 percent over the last few years, with $400 handbags now accounting for a quarter of the company's overall sales.

Another retailer that has courted the mass affluent shopper is Nordstrom. The company recently cut its third quarter earnings guidance after September sales came in below plan and inventory piled up on store shelves. Michael Boyd, a spokesman, said women's apparel was among the weaker areas, although sales of designer clothing and handbags remained strong. Nordstrom shares are also trading near their 52-week low of $37.80.

Does bling beat the market?

To be sure, not all luxury retailers are feeling the pain. As Danziger noted, the super rich continue to snap up $20,000 Louis Vuitton handbags and $200,000 Cartier watches. And Cartier's parent, Swiss luxury goods firm Compagnie Financiere Richemont, which recently reported a 20 percent sales increase at its specialty watch division, said its biggest concern was not a softening economy, but its ability to keep up with demand.

Above: 2007 Louis Vuitton magazine ad with Scarlett Johanssen & handbag bearing their signature monogram

While there have been signs of softness at the lower end of the luxury spectrum, analysts disagree over how much of it is the result of tighter purse strings versus unusually warm weather, which keep shoppers away from malls.

"I don't see a big change in spending for households with income of $100,000 and above," said Michael Silverstein, a senior vice president with the Boston Consulting Group and co-author of "Trading Up: The New American Luxury," which chronicles how middle class buying habits have shifted to more upscale products.

Silverstein points out that, despite the recent market roller coaster, stocks are still buoyant, unemployment is low and corporate profits are at record levels. All three factors should keep the mass affluent spending, he says.

But other observers warn that those on the cusp of real wealth may not prove quite so resilient.

"To think that this customer is immune to the ups and downs of the economy is simply not correct," said Danziger, of Unity Marketing. "They may not be defaulting on their mortgages, but there's a good chance their homes are not worth as much as they were last year - and as a result they don't feel as rich."

article above By Suzanne Kapner, images and headline were added for your enjoyment