Luxury Institute Blog

By Bruce Horovitz, USA TODAY

For $4,000, you can land a luxurious week in Europe, an Armani 100% cashmere overcoat or a diamond ring from Tiffany’s.

Or perhaps you’d prefer a new pair of sunglasses?

We’re not yet out of the worst economic crisis since the Great Depression, but Oakley, the egocentric sunglasses maker that prides itself on outside-the-box craftsmanship and marketing chutzpah, on Monday will announce plans for a line of $4,000 sunglasses.

One luxury-market expert even predicts strong sales. “There’s pent-up demand for exclusive luxury products,” says Milton Pedraza, CEO of the Luxury Institute, a consulting firm. “They could sell out quickly.”

The move comes at a time when the $200 billion luxury-products industry, once thought recession-proof, is spiraling downward. Luxury-product sales globally are expected to fall a hefty 8% in 2009, projects a Bain & Co. study.

Pooh-poohing all that is Oakley CEO Colin Baden. “Why not go after the Holy Grail of elite sunglasses? It’s less a business objective and more Oakley flexing its R&D muscle and thumbing its nose at the other expensive eyewear makers.

“But he doesn’t expect to make money on the line. “We’re doing this because it’s brand-positive. It’s Oakley being Oakley.”

Read the full article here

http://www.usatoday.com/money/industries/retail/2009-10-25-oakley-sunglasses_N.htm