Luxury brands are finally facing the recession like the rest of us: in a fetal position. When the U.S. economy first started tanking, upscale goods companies like Louis Vuitton and Cartier weathered the storm, since the rich are never too affected by things like higher gas prices, mortgage meltdowns, or George Bush's fiscal policies, which means they get to keep buying $14,000 luggage trunks (as coffee tables) and $145,000 watches (as bureau adornments). And then a funny thing happened: Eventually, the recession caught up with even the uber-wealthy, and their luxe spending dipped. Tiffany only posted decent financial reports because of international sales.

So what's a luxury brand to do to entice customers? Espiecially in the scary world of the Internets?

"The three core purchase motivations are indulgence, exclusivity and status," said Charlton. "Don't just focus on the rational benefits, entertain them. Extend the in-store experience online and welcome them to 'the club.' You need to create a seamless integration of the physical and digital brand experience." He also said that just as consumers expect more from luxury brands, they also have higher expectations for their ad campaigns. "You need to raise the bar," he said. "Use the latest tools and techniques, animation, sounds and new formats such as expandable banner ads." [WWD]

Also: Mark up your products by 15,000% of their cost.