Developing Markets: Russia's Anti-Bling Trend

The IHT has an article about how luxury is no longer loud in Russia. I'll say this for those new consumers -- they've caught up to the West fast. It jives with what I've been told. Apparently the Roberto Cavalli stores in Moscow are empty. Muscovites are afraid it is too flashy to be cool. Of course the irony is that now Cavalli is cool again in the West, but they'll catch on soon.

The evolution of the luxury consumer is meant to go something like this (categories are from a report distributed by American Express, descriptions are mine):

1. Acquisitive luxury (show off that new money with flashy logos. Key brand: Gucci)

2. Inquisitive luxury (show off how smart you are about fashion. Key brand: Prada)

3. Authoritative luxury (show off how smart you are about luxury. Key brand: Bottega Veneta)

4. Meditative luxury (show off how smart you are by not buying expensive stuff clothes. Key brand: Damien Hirst)

I wonder if we'll see the same sort of acceleration movement through the consumer cycles in Asia and India. If so, these markets may not be the long-term gold mine managers were hoping they'd be. Because, look, the IHT says the Russians are already onto phase four.