Everybody wants a slice of the luxury pie, but our Luxurist says it's the true prestige brands that are best poised to serve the new wealthy classes

What does luxury stand for in 2008? As far as I can see it’s a word bandied around far too much by what I call the ‘mock-xury’ brands. Luxury is not merely a larger seat and free popcorn at the cinema, nor is it a souped-up readymeal from a supermarket. A true luxury purchase is an experience. This notion of experience is what makes the real luxury brands stand out from the rest. Service is paramount, as is choice and convenience. We even go to the desks of our City clients, as they just don’t have the time to come to us.

Over the past few years a new vein of moneyed individuals has emerged. This upper echelon have a vast amount of disposable income, which they are readily spending. Never before have we seen so many private jets, yachts and cars selling for the price of a small London flat: everyone wants a slice of the carat cake. The highly affluent want the rarest, the first and the unique and the true luxury brands are responding to this. Look at the Hermès saddle made for the Selfridges Wonder Room launch in London; and last September in London we launched our largest ever collection of Cartier high jewellery, 34 unique pieces, and we sold over two thirds instantly. The luxury consumer in London is no longer just the affluent aristocrat; it’s the Russians, the Middle Easterners and before too long it will be the Chinese. But I’ve always believed that new money is better than no money.

Asia is booming; heritage, excellence and a strong sense of brand identity are crucial in these markets and, let’s face it, they are our future. Japan is currently Cartier’s number one market but by 2015 China will have surely taken over. The luxury world is taking note and we are likely to see an increasing number of brands putting greater emphasis on Asia and launching new collections there, like Karl Lagerfeld’s Fendi catwalk on the Great Wall of China. We mustn’t forget India either; the country is waking up to luxury. The Emporio building in New Delhi, due to open later this year, will house 130 brands including Versace, Paul Smith, IWC and, of course, Cartier.

It would be naive to say that luxury jewellery brands, such as Cartier, are not concerned about the recent economic downturn, but it is a fleeting concern. Most of our top clients will not feel its effect so we are confident that it will have a very minimal impact on a brand like ours. And let’s not lose sight of the fact that it’s an exciting time for London’s Bond Street and the surrounding area. Marc Jacobs, John Rocha, Matthew Williamson and Anya Hindmarch have all set up; Dunhill’s new temple arrives this year; and then there’s Louis Vuitton’s imminent expansion.

Not to mention the myriad jewellery boutiques, including two Cartier stores. All demonstrate the global pull of Mayfair right now.

It’s a good time for fine jewellers too. Demand is on an upward trend with more and more brands launching fine jewellery lines. Even the hip fashion emporium Browns has entered the market. Chanel is one of the best examples of a fashion brand creating fine jewellery; it has retained its quintessential French identity yet entered this new arena highly successfully.

However, now is the time for the authentic jewellery brands to demonstrate their prowess. Bespoke commissions are rising and the art of the fine jeweller is appreciated now as much as it was during the belle époque; the demand for craftsmanship, skilled artisans and outstanding creations is having a renaissance. And the finest jewellers are responding to this. Clients are increasingly being invited to ‘design from the stone’, where they are given the creative freedom. It’s another example of the high service and exclusive experience given to those who can afford it.

Whereas fine jewellery does not follow any trends as such, there are influences on its design. Unlike the world of fashion, which centres around and creates new trends, jewellery is more a process of cycles. For example, white gold and platinum have been immensely popular in recent years, but yellow gold is now enjoying something of a revival. Coloured stones and fancy diamonds are becoming more desirable as their sources become scarcer. Furthermore, the traditional rules of jewellery design are being ignored: never before have we seen the mixing of precious and semi-precious stones; now it’s a regular feature of some brands. It allows designers to be more daring in their creations as the colours of semi-precious stones are vast.

It’s an exciting time for luxury brands and those that carry on adapting and appealing to the super-affluent can’t fail.

ARNAUD BAMBERGER is UK Managing Director of Cartier and UK Chairman of Richemont