Nick

Chuckles, I think you slightly missed J's point. Purchasers of luxury/premium brands are assumed to be by-and-large fairly wealthy and so their consumption would not be affected as greatly in an economic downturn. They may spend less in harsher economic times, but not to the drastic extent of the general middle-class population; and they will still continue to spend it on luxury/premium brands but just less than they would have in the past (e.g. a Bentley Owner would be less likely to trade down to a Honda in an economic slump)

The 'elasticity' of spending (if that is the correct usage of the term, I am not an economist) is much less in the extreme ends of wealth (the wealthy and the poor) than the entire middle-class.

Nick

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