Eurozone crisis, luxury consumption

Is Europe's economy affecting luxury spending?

Shortly before resigning in disgrace as the Italian prime minister, Silvio Berlusconi famously made a remark that there didn’t seem to be any crisis in Italy, because the restaurants were filled. This does not seem fully to apply to Spain, with its 23 percent unemployment, or even to France, which I am also visiting and which is in better shape than Spain. One of the restaurants I had hoped to eat at while in Barcelona, recommended by the 2009 edition of my Fodor’s guidebook, had closed. A tapas place in Madrid, about which the same guide had said come early or you won’t be able to get a seat for lunch, was largely empty even at 1:30, by which time even the Spanish have begun to sit down for lunch. At 6:30 a Saturday morning, a taxi driver was waiting outside my hotel on the outskirts of Barcelona, patiently hoping for a fare. Nonetheless, luxury consumption is not dead, even in a crisis-hit Eurozone.

Nestle, the Swiss food giant, has in recent years developed a new coffee offering to supplement its longtime megabrand Nescafe, now going downscale and tired except in some developing countries. Called Nespresso, it is a single-serve upscale coffee pouch coming in endless flavors – some of which actually have vintages (!) indicating what year’s coffee crop they come from -- and brewed in striking modernistic for-the-home coffee machines, sold in special stores devoted only to all things Nespresso. (I believe there are now a few of these outlets in the U.S.)

The heart of Barcelona has the largest Nespresso store I have ever seen, with almost 30 counters and a take-a-number system like in deli departments in supermarkets. This monument to consumerism, which features a stupendous variety of gorgeous coffee brewing machines for sale, was very crowded when I went inside a weekday afternoon. Sales were brisk. One theory, I understand, is that these gourmet coffees are an affordable pleasure for people who can’t afford other pleasures – my understanding is that Starbucks sales held up well during the U.S. economic crisis in 2008 and 2009 for the same reason. (The Starbucks in Spain, although not ever-present as in some other countries, are also extremely crowded.)

The French daily Le Figaro ran a story about the continued sales growth of Hennessy cognac, still managed by the family of the Irishman Richard Hennessy who began the brand, though now owned by the French luxury conglomerate LVMH, which also owns Louis Vuitton, probably Asia’s most iconic French brand. One thing I learned from the article is its status among black musicians, starting with the jazz legend Miles Davis, who preferred it to Scotch, which he regarded as a white drink, and continuing through rappers such as Tupac Shakur and Jay-Z. In the last decade, U.S. sales of Hennessy have increased from 600,000 to 2 million cases a year, and each year the town of Cognac, France, where Hennessy is made, has a Blues Passion festival including blues and rap.

I had dinner in Paris in a trendy restaurant called Bistrot Paul Bert, which has sparked a foodie renaissance on a street of the same name in the downscale Paris neighborhood around Place de la Nation. It was a Saturday evening, and, not surprisingly perhaps, the restaurant was filled. My hotel had told me they had called the hotel and told them I’d be an hour late for my reservation, but when I arrived, the restaurant knew nothing of such a supposed phone call, but they let me sit by myself at a sort of small bar right where the maitre d’ welcomed new guests.

I was surprised how many people – mostly Americans – arrived without reservations, hoping to get tables. But I was also amused by a scene I never would have seen had I not been sitting at this small bar. This very French restaurant, of course, serves nothing but wine, French bottled waters, and some liquors to drink. However, at one point when things were quiet I noticed the maitre d’ stealthily take a big plastic bottle of Coke out from under the bar, inconspicuously pour some into a glass, and proceed to drink it up, in successive gulps, over the next few minutes.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.