Undoing the Democracy of Wealth

It will be interesting to hear the final retailer numbers for the about-to-conclude holiday shopping season. Especially interesting will be the numbers for high-end retailers trying to hawk overpriced merch in a down economy.

The Center for Media Research says that luxe marketers are changing their sales tactics. This according to a recent Wharton Marketing Conference in Philadelphia.

According to the Center's report:

• 2009 will be the worst year on record for marketing luxury goods


• Out are marketing campaigns aimed at making 16-year-olds want that to-die-for luxury handbag


• Out are marketing campaigns aimed at nouveau riche Russians flush with petrodollars


• Out is pandering to the conspicuous wealth of the Persian Gulf

What's in? Pampering the richest and most loyal of customers. The Center quotes a representative of one luxury goods manufacturer: 50 percent of their sales come from just 5 percent of their customers.

So after an unprecedented period of economic expansion and wealth creation, we're entering a period where wealth will be where it's always been--concentrated in the hands of a few. There was something democratizing to see members of what used to be the middle class driving tricked-out SUVs, checking time on their Rolexes, or stopping for a quick shine on their Guccis.

In a future where government will control more and more of the capital, and private industry in various sectors--finance, healthcare, manufacturing--will become more and more dependent on government for that capital, we may not see these days again.

Just thought you might like to know.