For the first time since World War II, elite marketers are lowering their prices. Chanel, Versace, Christian Louboutin and Chloe have announced sales. Market researcher Bain & Co. predicts that the market for luxury items will fall 2 to 7 percent next year, radio station Echo of Moscow reports. Sales in elite houses have dropped from $225 billion last year to $172 billion this year.

The Russian market for luxury goods is the fourth largest in the world and one of the fastest growing. It is begin to contract as well.

“In general, we are dealing with rather rick people who are continuing to buy luxury-class goods, even in spite of the crisis, but demand is beginning to fall nonetheless,” said Alexander Reebok, general manager Mercury, the world’s largest seller of luxury items. TsUM, the Moscow department store usually full of well-to-do shoppers in this season, is almost empty. Mountains of black caviar and lobsters sit untouched. …