America’s wealthy haven’t cut back… but they’ve reallocated.
It’s Wednesday night at the SLS Beverly Hills. Watching well dressed patrons eating foie gras covered with cotton candy one might be tempted to ask, “What recession?”
The bar, restaurant and dessert counter are all bustling at this ritzy hotel.
It seems that high income individuals have chosen not to scale back on luxury experiences during the economic downturn. Based on conversations with the cocktail drinkers and diners we spoke to…the wealthy are still spending money on what they enjoy and value. Dining out, spending time with friends and family, socializing with coworkers and cotton candy covered foie gras are just some of the things make the no-sacrifices list. But if y
ou look closer, some things have changed.
Spending on Self AND Others.
Susan is a high power entertainment lawyer and philanthropist. She looks very put together and is in her element at SLS.
Susan indentifies herself as “very liberal”, and has increased her spending on tips and charitable donations. She tells me she has always been a philanthropist, but now she wants to contribute in ways that have an immediate impact on those in need.
“I am tipping more. I always have, but more now since people are without jobs and I am very fortunate.” Susan still goes out for fine dining and expensive drinks herself, but she is also making adjustments with other people in mind. For example, these days she throws m
ore dinner parities at her house. “I invite my friends over that I know are cutting back. They might pass up on a dinner out somewhere, so this is what I can do to stay in touch.”
Interestingly, while Susan is very open to talking about increases in charitable spending she is more reluctant to discuss the luxury goods she buys (even the items she is wearing at the time of our conversation).
INSIGHT:
Talking about luxury in a conspicuous way is passé even with those who have Louis Vuitton on their shoulders and Louboutins on their feet.
It’s Wednesday night at the SLS Beverly Hills. Watching well dressed patrons eating foie gras covered with cotton candy one might be tempted to ask, “What recession?”
The bar, restaurant and dessert counter are all bustling at this ritzy hotel.
It seems that high income individuals have chosen not to scale back on luxury experiences during the economic downturn. Based on conversations with the cocktail drinkers and diners we spoke to…the wealthy are still spending money on what they enjoy and value. Dining out, spending time with friends and family, socializing with coworkers and cotton candy covered foie gras are just some of the things make the no-sacrifices list. But if y
ou look closer, some things have changed.Spending on Self AND Others.
Susan is a high power entertainment lawyer and philanthropist. She looks very put together and is in her element at SLS.
Susan indentifies herself as “very liberal”, and has increased her spending on tips and charitable donations. She tells me she has always been a philanthropist, but now she wants to contribute in ways that have an immediate impact on those in need.
“I am tipping more. I always have, but more now since people are without jobs and I am very fortunate.” Susan still goes out for fine dining and expensive drinks herself, but she is also making adjustments with other people in mind. For example, these days she throws m
ore dinner parities at her house. “I invite my friends over that I know are cutting back. They might pass up on a dinner out somewhere, so this is what I can do to stay in touch.”Interestingly, while Susan is very open to talking about increases in charitable spending she is more reluctant to discuss the luxury goods she buys (even the items she is wearing at the time of our conversation).
INSIGHT:
Talking about luxury in a conspicuous way is passé even with those who have Louis Vuitton on their shoulders and Louboutins on their feet.
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