Rupert: Rich shy away from bling

Zurich - Rich shoppers are shunning flamboyant watches in favour of sober pieces as they seek to downplay their wealth, the chairperson of luxury goods group Richemont told Reuters on Thursday.

"I don't think people who have money to spend will want to show that they spend it. They are opting for more discrete luxury that is timeless and has an investment value," Johann Rupert said in an interview.

Consumers are more likely to opt for watches made from white gold or platinum rather than yellow gold, Rupert said as many feel it inappropriate to flash their riches as jobs are axed globally in the wake of the worst economic downturn in decades.

"People won't be able to say if it's white gold or platinum or steel and will assume it's steel," Rupert said.

"People will become more introspective and less flashy. They will be more sober."

Richemont, the maker of Cartier watches, saw April sales slump 26% in constant currencies and warned on Thursday markets are likely to remain challenging until September as consumers hesitate about splurging on expensive luxury treats.

Rupert said he had asked his brands, which include IWC, Vacheron Constantin and Jaeger-LeCoultre, to look closely at the designs of the 1930s around 18 months ago when he anticipated a worsening in economic conditions and a shift in consumer preference to more low key designs.

Demand for more ostentatious designs would hold up in Asia, India and the Middle East, Rupert said.

"I don't think they will suffer the same economic problems that the West will and consumers there will be more exuberant in their taste," Rupert said.

- Reuters