LEADERS

Forecast from the front line

by

Michael Aumock

|

This is the featured image caption
Credit: This is the featured image credit
Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010. Michael Aumock, HNWI…

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010.

Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010.

It’s OK to breathe a sigh of relief, but don’t get too excited just yet; I don’t think we’re racing toward another boom like the one that just fell on our heads again anytime soon (unless a new technology arises that revolutionizes travel, like teleportation). But I do think that the worst is behind us.

That is not to say that it will be an easy climb out of the muck and mire we have collectively been forced to square dance in for the last 18 months. But rather, it will be “two steps forward, one step back” for the foreseeable future. There are too many uncertainties for an unencumbered rebound to simply show up and take wing. For one, banks still are being extremely tight-fisted, and perhaps, rightly so. Would you want to be the president of a bank who made a loan TODAY that defaulted? Me either. Additionally, the housing market us still trying to find its footing. Conflicting reports coming from the media present a patchwork quilt of view of the real estate market…in some places it’s up a little…and it some places it is still sliding a little. But there is good news in that patchwork; the places that were sliding have slowed their slide, and the places that saw the smallest dips, have seen an increase that is bound to be contagious, and start to increase lending on the mortgage side.

Wishing will make it so.

We’ve been in a cycle of self-fulfilling prophecies where the economy is concerned. When the collective consciousness of a nation becomes engrossed in an idea, that idea becomes reality. In the beginning of ’08, the scent of the crash was in the air. If the wind blew just right, you could smell it. You had to know what it was, because to most of us, it was an unfamiliar odor. It smelled faintly of leftovers, hand-me-downs and Grandma’s attic. Boomers who lived through plenty recessions over the last half century were constantly reminded of their parents’ tales of The Great Depression. We knew what was afoot.

By mid-08, when the market really tanked, investors were all doom and gloom….and rightfully so. However, when Joe Lunchbucket started feeling the pinch, the country fell into a malaise that at times, was palpable. The malaise turned to fear, and the people of America did two things: First, they froze; and then, they started pointing fingers. Most of us should have been pointing in the mirror. The effect was absolutely chilling on the country and most importantly, on High Net Worth Individuals (HNWIs), most of whom are baby boomers. The public sentiment might not have been “kill the rich”.

As lavish spending—justified or not—became a huge taboo, HNWIs did exactly what the economy didn’t need…they sat on their hands, and their checkbooks, and did nothing. After all, they had enough things to last a lifetime…so they went once around the sun without spending any real dough, adopting a new saying, “We’ll wait for 2010…the economy will surely pick up by THEN.”

So what does that mean for the luxury segment?

So now, with a new decade upon us and no glaring indicators to signal whether it’s time or not, some economists, myself included, believe that the HNWI segment will start spending again, simply because, a year ago, they put a moratorium on spending and that year has come and gone. By and large, they will feel like they did their penance. They still have disposable income, and in ’10 they won’t be afraid to use it.

One year was enough.

And so, it’s time to call the travel agent, or Quintess.

Email the Porsche dealer and check out the new Panamera. Drop by the watch store and try on a new Panerai or Patek, or take the new Sunseeker 37 Meter out for a sea trial.

Although I don’t think it will be enough to get the economy moving quickly, it will be a start. Money will start to flow again, slowly at first, but picking up speed with every week that passes. And most importantly, the positive trickle-down won’t just be economical…but it will echo through hearts at all levels of the economy and the malaise will fade, but it is doubtful it will soon be forgotten.

Michael Aumock, Vice President of ViaMari

Michael Aumock

CEO/ Founder

Sales and Marketing at the director/C-level for companies serving High Net Worth Individual, and the lifestyle they pursue. My people skills have allowed me to smoothly transition into yachts after successful stints in Resort Real Estate and Aviation. My management and strategy skills have afforded me the opportunity to handle the sales and operations for ViaMari in a manner that has allowed slow, consistent growth even through the recession, and find us poised to make great leaps as money flows again. I am a capable speaker on HNWI lifestyle and buying choices and am usually available to speak at seminars or symposiums on the topics of sales strategy and client retention.

LEADERS

Forecast from the front line

by

Michael Aumock

|

This is the featured image caption
Credit : This is the featured image credit
Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010. Michael Aumock, HNWI…

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010.

Michael Aumock, HNWI expert and vice president of ViaMari, gives an optimistic account of how the affluent will help the economy to pick up steam in 2010.

It’s OK to breathe a sigh of relief, but don’t get too excited just yet; I don’t think we’re racing toward another boom like the one that just fell on our heads again anytime soon (unless a new technology arises that revolutionizes travel, like teleportation). But I do think that the worst is behind us.

That is not to say that it will be an easy climb out of the muck and mire we have collectively been forced to square dance in for the last 18 months. But rather, it will be “two steps forward, one step back” for the foreseeable future. There are too many uncertainties for an unencumbered rebound to simply show up and take wing. For one, banks still are being extremely tight-fisted, and perhaps, rightly so. Would you want to be the president of a bank who made a loan TODAY that defaulted? Me either. Additionally, the housing market us still trying to find its footing. Conflicting reports coming from the media present a patchwork quilt of view of the real estate market…in some places it’s up a little…and it some places it is still sliding a little. But there is good news in that patchwork; the places that were sliding have slowed their slide, and the places that saw the smallest dips, have seen an increase that is bound to be contagious, and start to increase lending on the mortgage side.

Wishing will make it so.

We’ve been in a cycle of self-fulfilling prophecies where the economy is concerned. When the collective consciousness of a nation becomes engrossed in an idea, that idea becomes reality. In the beginning of ’08, the scent of the crash was in the air. If the wind blew just right, you could smell it. You had to know what it was, because to most of us, it was an unfamiliar odor. It smelled faintly of leftovers, hand-me-downs and Grandma’s attic. Boomers who lived through plenty recessions over the last half century were constantly reminded of their parents’ tales of The Great Depression. We knew what was afoot.

By mid-08, when the market really tanked, investors were all doom and gloom….and rightfully so. However, when Joe Lunchbucket started feeling the pinch, the country fell into a malaise that at times, was palpable. The malaise turned to fear, and the people of America did two things: First, they froze; and then, they started pointing fingers. Most of us should have been pointing in the mirror. The effect was absolutely chilling on the country and most importantly, on High Net Worth Individuals (HNWIs), most of whom are baby boomers. The public sentiment might not have been “kill the rich”.

As lavish spending—justified or not—became a huge taboo, HNWIs did exactly what the economy didn’t need…they sat on their hands, and their checkbooks, and did nothing. After all, they had enough things to last a lifetime…so they went once around the sun without spending any real dough, adopting a new saying, “We’ll wait for 2010…the economy will surely pick up by THEN.”

So what does that mean for the luxury segment?

So now, with a new decade upon us and no glaring indicators to signal whether it’s time or not, some economists, myself included, believe that the HNWI segment will start spending again, simply because, a year ago, they put a moratorium on spending and that year has come and gone. By and large, they will feel like they did their penance. They still have disposable income, and in ’10 they won’t be afraid to use it.

One year was enough.

And so, it’s time to call the travel agent, or Quintess.

Email the Porsche dealer and check out the new Panamera. Drop by the watch store and try on a new Panerai or Patek, or take the new Sunseeker 37 Meter out for a sea trial.

Although I don’t think it will be enough to get the economy moving quickly, it will be a start. Money will start to flow again, slowly at first, but picking up speed with every week that passes. And most importantly, the positive trickle-down won’t just be economical…but it will echo through hearts at all levels of the economy and the malaise will fade, but it is doubtful it will soon be forgotten.

Michael Aumock, Vice President of ViaMari

Michael Aumock

CEO/ Founder

Sales and Marketing at the director/C-level for companies serving High Net Worth Individual, and the lifestyle they pursue. My people skills have allowed me to smoothly transition into yachts after successful stints in Resort Real Estate and Aviation. My management and strategy skills have afforded me the opportunity to handle the sales and operations for ViaMari in a manner that has allowed slow, consistent growth even through the recession, and find us poised to make great leaps as money flows again. I am a capable speaker on HNWI lifestyle and buying choices and am usually available to speak at seminars or symposiums on the topics of sales strategy and client retention.

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