THE CASE FOR LUXURY: (All overseas editions). In this double issue,
Newsweek international examines how the global economic crisis has resulted in
people trading in excess for excellence, superficiality for substance. As
Assistant Managing Editor Jonathan Tepperman reports, in the U.S., retail and
food sales fell almost 10 percent in December and 2 percent more in January.
Yet while trendy or midrange clothes chains like Saks Fifth Avenue are
hurting, ultraclassics with reputations for quality are still going strong:
LVMH, which owns Louis Vuitton, charted 4 percent growth for 2008, while
Hermes hit 8 percent. Gavin Davis, a spokesman for Savile Row Bespoke, a
cooperative of 12 London tailors, says the group has reported a steady rise in
sales over the past few months, in what he calls a "flight to quality."
Experts predict this kind of growth will continue. "The sense from the shop
floor is that it's lower frequency, higher value," says James Lawson, a market
consultant with Ledbury Research. This report looks at how the trend is
affecting all commercial sectors.
http://www.newsweek.com/id/191499
Fashionably Discreet. Special Correspondent Sameer Reddy reports on the
growing success of the smaller, less-known haute couture houses in Paris. In
haute couture's smaller-scaled parallel universe, designers have only their
handicraft to help them make their mark on an industry blinded by brand names.
Lacking advertising budgets, they fail to attract much editorial attention,
and consequently their client base can only grow via word of mouth. But given
the state of the world economy, their leaner operations, smaller overhead and
more accessible price points leave them better positioned than ever to
survive. Reddy reports that while couture houses across the board generally
posted respectable growth in 2008, the gains among the second-string
couturiers were especially strong.
http://www.newsweek.com/id/191500
Hold the Tablecloth. Special Correspondent Ginanne Brownell reports that
in this economy people may be down, but they're still dining out, increasingly
drawn to eateries that offer delicious, hearty food in a laid-back
environment. It sounds like an oxymoron, but bare-bones fine dining is the
order of the day. Forget suiting up and sitting for hours through a four-
course meal, whose heart-stopping bill reflects the stilted service as much as
the food; today's diners want to strip away the excess and pay only for what
they came for: first-rate food.
http://www.newsweek.com/id/191504
Less of a Good Thing. Special Correspondent Joanna Chen reports that not
every meal has to be a no-frills affair. From Tel Aviv to London, some luxury
restaurants are simply serving slightly less of their lavish offerings. With
business down 20 to 50 percent at some top establishments, restaurateurs are
seeking to lure diners back to the table with affordable plates that don't
skimp on the extras.
http://www.newsweek.com/id/191505
Drinking Up the Wine Cellar. Contributing Editor Susan H. Greenburg writes
that the wine cellar that she and her husband built in their home has turned
out to be one of their better investments in recent years. "We've been living
off the contents of the mysterious foil-wrapped packets in the freezer, and
selling 'Breakfast for dinner!' as an exciting new meal option for our kids.
Sushi is for special occasions. But raiding the wine cellar is the one thing
we can do that makes us feel like we're still living the good life," she
writes.
http://www.newsweek.com/id/191506
Signs of Life in The Art Market. Special Correspondent Alexandra A. Seno
reports that in these tough economic times, the contemporary art market is
finding clever ways to lure customers. The downturn allows artists and
dealers to be more creative, and collectors to focus on the fundamentals
instead of on the buzz. And serious collectors are finding excellent deals on
top quality art.
http://www.newsweek.com/id/191507
Living Large by Building Small. Contributing Editor Cathleen McGuigan
reports that in the same spirit as a Wall Street trader who wants to keep his
bonus under wraps, a certain discretion is infiltrating high-end designer
houses. The downward spiral of the economy has already led to the downsizing
of mass-market housing, shrinking the average new single-family home in the
U.S. from a high of 244 square meters to 218. Now the trend is trickling up to
luxury architecture, which these days is not so much about building large as
building well.
http://www.newsweek.com/id/191508
The Return of Luxury. Special Correspondent Nick Foulkes writes that in
the midst of this economic downturn, luxury might seem to have little point.
"However, I would argue that these are the times when we most need cheering up
with small helpings of the better things that life has to offer. Nevertheless,
our relationship with luxury is changing." He writes that a hunger for
luxury is a human instinct; it's just that our appetites got out of check.
"There will be a period of readjustment, an Augean clearing of the branded
bric-a-brac that came to clutter our lives and obscure from view the beauty of
true luxury."
http://www.newsweek.com/id/191511
Next: Harriet Who? London Reporter William Underhill looks at the
potential candidacy of Harriet Harman, the deputy leader of the British
Labour Party, for Labour leader after Gordon Brown's all-but-certain defeat in
the next election. Her surprising emergence as the front runner is a
reflection of the great difficulties Labour is having in the midst of an
economic crisis. Though she has denied interest in the job, she is well
positioned for it. Since entering Parliament in 1982 as one of only 10 Labour
women M.P.s, she has made a name as an advocate of equality and women's
rights.
http://www.newsweek.com/id/191491
WORLD VIEW: A Financial 9/11. David Miliband, foreign minister of the
United Kingdom, writes that just as the world was affected by the terrorist
attacks of September 11, the foreign policies of many countries are again
being reshaped, but this time by the current economic crisis. This crisis has
created the opportunity for governments to enforce a new and effective
multilateralism by doing away with "false necessities" and allowing
progressives to fill in the space. In order for a "global society" to exist,
Miliband states that "progressives must address the deep economic,
environmental and political imbalances that gave rise to the current mess."
http://www.newsweek.com/id/191498
THE LAST WORD: Gen. Barry McCaffrey, former director of the Office of the
National Drug Control Policy under President Bill Clinton. Retired U.S. Gen.
Barry McCaffrey chats with Senior Writer Adam B. Kushner about the drug wars
in Mexico and offers advice in light of Secretary of State Hillary Clinton's
recent trip there. McCaffrey points out that "on both sides of the border,
political authorities are tempted to be in denial of the scope of the
problem." The solution is "engagement" and "resources commensurate with the
problem." Secretary of State Clinton's pledge of American support
accomplishes step one: confirmation that "the Americans are listening to us."
"The second thing is to provide resources, in deference to Mexican
sovereignty, to support their internal efforts."
http://www.newsweek.com/id/191497
