The Luxury and up market segment is slowly but surely feeling the impact of the slowdown in global economic growth. New and fast growing markets in Asia may not do enough to offset the slowdown elsewhere.
SLOWING DEMAND - RISING COSTS
As Starbucks is closing down stores and fighting rising input costs, L’Oreal is moderating growth forecasts.
A weak USD, is also affecting the margins of European companies like Porsche SE, LVMH, Luxottica and L’Oreal.
As the expectations of a recovery in the second half of 2008, are now being postponed to 2009; companies are looking to just meet, and not beat their targets for 2008.