• Los Angeles Times , Thursday, December 4, 2008 11 AM

I knew business was real bad in the luxury segment when an acquaintance of mine who sells Lamborghinis and the like told me that his favorite customers were journalists because they had such fascinating stories to tell. Let's ignore the fact that 99 and 44/100% of journalists don't have two $25,000 notes to rub together for a Lexus, no less a Lamborghini.

When times are flush, the sellers of luxury goods don't have to resort to the lavish parties that Alana Semuels describes as becoming de rigueur for pushing top-end goods on the coast. But, this being L.A., the New Frugality is being met with the New Extravagance. "Splashy events are back in vogue," she tells us, starting with a bash thrown by jeweler Damiani and lifestyle magazine Angeleno.

"About 40 men in dark suits and women wearing pearls dined on frisee and filet mignon, then sipped champagne as they gazed at jewelry displays illuminated by eco-friendly fireplaces, watched videos of yachts with 'Damiani' on their sails and ate coconut raspberry cake in the shape of a diamond."

As you can imagine, all this is done to win the loyalty of the core consumer by giving them more intimate interactions with the brand. And lest you think it's all about wanton debauchery, the Damiani-Angeleno event also raised money for inner-city art programs.

"The nonprofit element of these parties certainly would alleviate the apparent gluttonous nature," says David Winter, president of the Luxury Marketing Council of Southern California .

Read the whole story at Los Angeles Times »