I'm Back - But is Luxury Dead?

I begin my triumphant return with the discussion of a WSJ article on the luxury goods market and how aggressive markdowns and discounts in high-end department stores during the holidays diminished the attractiveness of high-priced apparel, shoes, and - of course - handbags.

It's an understatement to say that designers were a bit peeved by the startegies of Neimans, Saks, and other luxury retailers; they felt that their brands were being damaged, perhaps irreperably, and are now threatening to withhold the best items of their collection from these stores instead of going through traditional channels.

The fears of Marc Jacobs and other high-end designers may well-founded. Former Gucci, Prada, and Chloe enthusiasts alike were interviewed in the article, and stated that they would never again pay full price for luxury items. To paraphrase their rationale: how do they know that the very items for which they shell out 2 grand will not be reduced to a mere pittance the next day?

What say you, folks? Is luxury dead, as some alarmists would have you think? Or are we in for a temporary bump in the road, which will eventually resolve itself once the stock market starts to climb?

I for one favor the second theory. While I may not be purchasing any luxury bags in the near future, I will continue to oggle them until the economy is on steady ground and I can finally indulge again.