Testing the fabric of luxury brands. (News Analysis).

Marketing Week, May, 2002 by Sonoo Singh

The luxury goods sector has weathered recent storms well, and some brands are considering IPOs. However, a combination of cheap fakes and investor pressure could erode their biggest asset -- exclusivity.

The padded nylon Prada, the quilted Chanel, the Fendi baguette, the Ferrari and the ubiquitous Burberry check seem set to stay on the aspirational wishlists of consumers worldwide.

The storm clouds that gathered over the luxury goods market following the attacks on the US and the economic downturn seem to be clearing away, with analysts predicting that the sector is on the verge of re-establishing the massive growth that it experienced in the late Nineties.

On the back of this recovery, both Prada and Burberry are planning an initial public...