Whither Luxury?

For the past several months, luxury businesses have been battening down to cope with a sinking economy. As the consumer pulls back on discretionary spending, luxury executives and retailers are scrambling to redefine themselves. Tiffany & Co. is opening smaller stores. J. Crew has set up shop in a former Tribeca bar and propped it with real liquor bottles along with the bow ties. Times may be tough, but things of great beauty—objects, food, buildings, places, clothing, jewelry—will never lose their appeal. There is a widely accepted theory that in moments of real political, social or economic stress, lipstick sales spike. People may spend less on frivolous items and shop more judiciously, but when they do shop, they will demand more of the experience and of luxury. For that reason, tough economic times are often the most creative. The picky consumer forces the pretenders—those who do not really believe in their craft or who don't have anything to say with their product—to fall by the wayside, making authenticity the priority.

One of my favorite stories in this issue, a special supplement to TIME, is about the current trend in no-frills dining. Major chefs like Joël Robuchon of L'Atelier and David Chang of the Momofuku empire are forgoing the usual dining-room luxuries like linen tablecloths, flowers and bread baskets to focus instead on great food and even greater prices. Some of these forward-thinking chefs are going so far as to forfeit waiters too, choosing to serve the food themselves. Needless to say, their establishments are packed. And customers are more than willing to wait.