• Newsweek, Wednesday, April 7, 2010 10:46 AM

Interestingly, Jonathan Tepperman had a report in Newsweek a couple of weeks ago that found that some heritage luxury brands that "stayed true to their roots" have thrived during the recession. Among them, Louis Vuitton (see item above), which saw sales double last year.

It's not that the luxury landscape isn't changing. "With the crisis, bling bling is passé," says Bernard Arnault, the chairman of Vuitton parent company LVMH. And buyers are "moving away from conspicuous consumption, fat logos, and lively colors," according to HSBC analyst Erwan Rambourg.

But established luxury brands with products that stand outside seasonal fashion trends have an inherent advantage when the well-to-do trim back from say, five pricey handbags a year to one or two. Among the winners: classic bags and scarves from Hermès, old-fashioned luggage from Louis Vuitton, and Burberry raincoats based on a World War I template.

The two stories seem to agree about Versace: In time like this, brands that are "too edgy" won't fly, Milton Pedraza of the Luxury Institute tells Tepperman. "People are not going to buy Versace," he says.

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