How does the world work? image

How does the world work? Some say the world is crisis, but luxury brands post strong sales
Well, the world is in crisis right? Well yes.

Greece is clearly bankrupt. They organized last elections with borrowed money. In Spain, well in Spain more than half of young peoples are out of work, according to fresh statistics. Yes, the number of 16-24 year old Spaniards out of work rose to 51.4 per cent in December, more than double the European Union average, according to a report by Spain’s National Statistics Institute.

In Italy, new car sales fell 25 percent in June to 128,388 vehicles – their lowest level since 1979.
Kodak is bankrupt, Air France plans to cut over 5,000 jobs by 2014, PSA Peugeot Citroen over 10,000 ( may close one factory), and Opel is preparing to close its Bochum plant (the first major plant closure in Germany since World War II). Ah, and let’s not forget Nokia – they just announced this week that they will cut “additional ” 10,000 jobs by 2013. These come on top of close to 14,000 job losses announced last year.
You may say – yes this is happening only in Europe. But let me to continue.

In US BlackBerry maker Research in Motion is reportedly cutting jobs in ‘batches’ in a bid to save as much as $1 billion by the end of the current fiscal year. No more than a year after the Ontario-based company cut 2,000 jobs, it looks to shed another 2,000 jobs from non-essential departments in the coming weeks and months.
Best Buy Co., the largest U.S. electronics retailer, is cutting 2,400 jobs, or 1.4% of its total, as the retailer seeks to cut costs…
Corporate layoffs in the US amount to 37600 in June after 61887 in May. And the unemployment rate is still at almost 10 percent (8.2 per cent).
The jobless rate peaked at 10 per cent in October 2009, and dropped to its lowest in April at 8.1 per cent. But keep in mind that Since World War II only one US president has been returned to office with the unemployment rate above 6 per cent.
In Japan, Renesas Electronics will cut more than 5,000 jobs, Olympus 2,700.
Ok, now let’s see the big picture – or let’s hear what some of the most powerful peoples have to say…
The boss of the International Monetary Fund (IMF) believes the global economic crisis has become “more worrisome” and that the Asian region is not immune from the spillovers from Europe’s problems.

The head of the European Central Bank Mario Draghi says that the central bank could not “fill the vacuum” left by member states’ lack of action as it was claimed the zone is on the point of “disintegration”.
So yes – I think is clear. The watch would not stop, but the world is facing challenging times.

However

The high prices do not seem to ruffle customers – in fact, many high-end businesses have been able to mark-up items to attract clientele who liken quality with price.
Luxury retailers scored the biggest gains in June, in what was otherwise considered a mixed month for retail. High-end department stores Saks Fifth Avenue and Nordstrom both posted strong same-store gains. Saks’ June sales jumped 6 percent; Nordstom’s grew by 8.1 percent – while mid-range department stores didn’t fare as well.
Prada said first-quarter profit doubled. Tiffany & Co anticipates 7% to 8% growth in total net sales this year, while LVMH opens Louis Vuitton jewellery stores in Paris and around the world. Also last week, PPR, home to Gucci, Yves Saint Laurent and other brands, said its luxury segment’s sales are up.

But how about premium vehicles?

BMW, the world’s largest premium carmaker announced Friday that the first half of the year was its best ever in sales. BMW said it sold 900,539 vehicles worldwide between January and June, a more than 8 percent increase from 833,391 vehicles during the same period of 2011.
June was the company’s second-best sales month ever, as 172,516 vehicles were delivered to customers, a 4 percent increase from 165,868 during the same month last year.
Also Daimler said Mercedes Benz sales during the first half of this year have been encouraging. June 2012 proved to be the best month ever for Mercedes Benz.
Mercedes Benz sold 652,924 units globally this year, a 6.9% increase as compared to the similar period in 2011.

So even if the world is not going in what should be known as “the right direction”, we still have hope because, as we all know, hope is the last thing to die.

  • Mike van der Zee

    This simply proves the old adage about the rich geting richer and the poor,poorer