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Luxury for Sale

"Look at the quality," he said. "A woman will wear this to her next Christmas party, and she is spending $3,000 to use this just once."

Foy is chief executive of eFashi onSolutions, a Secaucus based company that provides online customer service for luxury brands such as Judith Leiber, Oscar de la Renta and DKNY.

His company is among those that cater to the monied class ultra rich clientele who can range from successful hedge fund managers to the wealthy entrepreneur next door. The ultra wealthy are not tightening their Gucci belts at a time when retailers are fretting that middle class consumers will spend less this year.

There are roughly 150,000 households in the United States with a net worth of at least $20million, according to Ron Kurtz, president of the American Affluence Research Center, an Atlanta consulting firm to companies that target affluent customers. His group derived the net worth figure for the first time based on 2004 Federal Reserve Board research, the latest available, he said.

"They are relatively recession proof," he said of high cartier gold engagement knock off rings net income households. "They still have a positive outlook about their own personal income and their spending plans."

People in the bling business want a piece of that action. Corporations sponsor everything from fashion shows to golfing events to try and reach well heeled customers. No less than five magazines aimed at high net worth readers are being launched this year and next. They include ForbesLife Executive Woman, Trump Magazine and Conde Nast Portfolio, which is published by the same company that owns The Star Ledger.

"They are unrestrained spend ers when it comes to travel and va cations, parties, fashion, collectibles, automobiles and similar items," according to "The Sky's the Limit," a 2007 book on how to market luxury products (Charter Financial Publishing Network; $39.95). In 2005, they spent an average of $1.75million per person on fine art and $248,000 on jewelry, the book said.

Bernard Arnault, chairman of LVMH, which makes Louis Vuitton and Givenchy leather goods, said last week he expects global spend ing on luxury goods to almost double to $450 billion within five years.

The filthy rich have to deal with out of stock goods just like everyone else. But they have a way around such inconveniences.

There is a shortage of big yachts on the planet because it takes 4 1/2 years to build one. That's why some buyers are willing to pay a 10 percent premium to other customers to take their place in line for a new boat, said Felix Sabates Jr., chairman of Trinity Yachts, a yacht manufacturer in Gulfport, Miss.

"There are a lot of multimillionaires in Russia, and we are building a few yachts for them," Sabates said. "They don't mind paying a premium."

Some yacht owners who started out with "a small boat," which he defined as 120 feet long, now want more space. During a three year period, his company sold 18 yachts that were 161 feet long for between $30 million and $33.5 million each. The trend is to outfit them with large bedrooms, bathrooms, satellite TVs and cartier diamond wedding knock off rings the latest navigation systems.

"There are not a lot of yards capable of building big boats," Sa bates said. "We don't negotiate on price."

Luxury brand companies have different ways of attracting and holding on to wealthy customers. Mercedes Benz USA, for example, sponsors everything from fashion shows in New York to the Master's golf tournament.

The Montvale importer also sells an AMG line of high performance vehicles with largely hand crafted engines to super affluent drivers, according to Steve Cannon, vice knock off cartier love ring as wedding band president of marketing for Mercedes Benz USA. AMG is an example of an exclusive brand within a luxury brand.

"Some owners buy 10 or 15 cars, and they have garages with multiple vehicles," he said. "One buyer flew to the Frankfurt auto show this year because he wanted to see the SLR roadster," which costs $495,000 plus destination charges.

Mercedes set up a private lounge on the Web, so AMG owners can share information on limited edition cars, such as the CL 65 AMG 40th anniversary edition, a $295,000 model. Only 20 cars were built for sale in the United States, and each one was sold, Cannon said.

"They are looking for exclusiv ity," he said. "If everybody has one, that is less interesting to them."

Mercedes Benz also runs events for owners to race their cars at motor speedways around the coun try, and it helps to sponsor vintage car shows such as the Pebble Beach Concours d'Elegance.

The super rich also want their baubles, but not necessarily white diamonds because they already own them, according to Ralph Des tino, former chairman of Cartier, the jeweler and watch maker.

"In the world of diamonds, there is a stronger than ever desire for colored diamonds," said Des tino, who is chairman of the Gemological Institute of America, an independent nonprofit organization. "Pink and blue diamonds are extremely rare, and the rarity alone appeals to the very rich."

Luxury wristwatches also are highly desirable among the polo set, who are enticed by designer names, he said.

"There is tremendous interest in luxury watches that have become jewelry watches," Destino said. "It now becomes a jewelry bracelet that happens to tell time."

People at the Movado Group know the upscale wristwatch market.

The high cartier ring box for sale imitation end watchmaker re cently launched the C1 chrono graph, an 18K rose gold model that retails for $29,900. The watch has received "an incredibly positive response from our top retail customers," said Mary Leach, chief marketing officer for the Paramus company.

Movado reaches consumers through relationships with cultural organizations such as Lincoln Center for the Performing Arts, the Kennedy Center and the New York City Ballet. The company uses ads in program brochures and signs at cultural events, gives wristwatches to VIPs and leverages celebrity endorsements with Yankee shortstop Derek Jeter and New England Patriots quarterback Tom Brady.

Besides philanthropy, super rich entrepreneurs want to establish employee stock ownership plans to reward their loyal workers and develop business succession plans to retain key managers who are not related to them, she said.
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