It's not an accessory; it's a lifestyle.

Hand-wringing is currently going on at luxury bag manufacturers.

Luxury handbag maker Coach came in with relatively strong numbers for their fiscal fourth quarter but are still feeling gloomy. Although Coach's fourth quarter profit rose 33% the company has predict that the continued consumer cautiousness in the U.S. will reach well into 2009.

Does this type of cautiousness differ in kind or degree when compared to the cautiousness displayed by the American consumer who moves from cheddar cheese to American cheese to nothing?

Coach joins other retailers in predicting reduced spending even among luxury shoppers.

When the superfluous cannot be moved, a principle feature of capitalism is in peril.

Chief Executive Lew Frankfort said in an interview that the company will introduce products with higher material and labor costs at prices lower than they would have charged during more rosy economic times.

Will the laborers who are increasing their workload see any increase in their wages? Or is it piecemeal? Or, more likely, will their increased effort be rewarded with decreasing wages because of the unfortunate "fluctuation" in the market?

From: http://www.luxist.com/2008/07/29/coach-predicts-tough-times-ahead/