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Deep financial crisis, the plight of so few companies fall into the abyss of a luxury, like tiffany, chanel, LV, Gucci. Have Gianfranco Ferre, Exte and Malo brand, Just Cavalli, as well as the production of luxury goods authorized IT Holding Group, carrying 200 million euros of debt not even have to pay the license fee authorized by the brand, had filed for bankruptcy protection, which has alerted the Government of Italy, because of the closure of the company really will affect thousands of employees will lose their jobs.
      ESCADA German luxury brands continued deterioration of the situation, the loss of 2007 from 27 million euros up to 70 million euros, the company urgently needed a few months to raise 30 million euros in funds to ease tension in the chain.
      Luxury brands mainly the tiffany jewelry in the retail industry's most vulnerable to the impact of financial crisis, while the rich are still rich wealth, but they also feel that the consumer at this time, some out of date. Popular in the beginning of today's luxury consumers is the reduction of the base so that the most tense of luxury brands.
Good performance of the original company's profits fell sharply, particularly in jewelry brand significantly.
Bulgari net profit in 2008 than in 2007 of 51.8 million euros dropped to 5.7 million euros, sales in 2008 than the 12.8 percent decline in 2007 to 1.08 billion euros. Bulgari company CEO Francesco Trapani is expected to allow customers to buy less in 2009 even more difficult for the poor performance of the company will close shop, he will be their annual salary in 2009 to reduce by 75%.
      The same situation also occurred in the tiffany jewellery, Companies in the fourth quarter 2008 profit fell 75.6 percent, 32 percent drop in annual profit. Vice President and Chief Financial Officer James fernandez said the main reason sales affected other jewelry brand strategy to take a discount, and Tiffany & co. Always insist on full-price strategy to maintain brand image. The company plans to reduce costs, the United States part of the retirement age of 800 to 600 employees received early retirement agreement, the company's total number of employees accounted for 10%. In addition the company also plans to close 16 stores, these two initiatives can save tens of millions of dollars the cost of 6, while the other will be a reduction of 60 cents earnings per share.