Living in Armenia: The Battle of Poverty and Prosperity

I have had to bear witness to poverty in my homeland more times than I care to remember. I have felt the bitter cold of winter on my back each time I have gone to the village of Vedi for Christmas to visit distant relatives who live there. The same occurred again this year when I made my annual trek to see this family of six who live in conditions that should bring shame on all of us. Of the four children between the ages of 18 and five, the eldest is physically and mentally impaired. The family does not have running water for cooking or washing or cleaning, nor do they have natural gas to heat their tiny dilapidated home. The mother has critical health issues, including hypertension, and the father does the best he can with the resources God has given him. They receive only a fraction of the medical care they so desperately need because of limited services available in their village and because of limited funds. The daughter is set to attend university next year, but her hopes of pursuing a higher education are quickly fading as living costs in Yerevan skyrocket and tuition fees are more than what her parents earn in one year. The mother dreams of one day having a kitchen and a real toilet in the house. The father wonders how he will be able to marry his daughters off when they have an older brother who is physically and mentally challenged. After all, no one wants a new bride who might be carrying defective genes that could potentially compromise the process of procreation. The only person who is oblivious to this family’s plight is their little five-year-old boy who still believes in Santa Claus and dreams of brand new toys. But even this slight little human being has begun to understand that not all good things come to those who deserve them. This is but one family; there are tens of thousands of families like them whose circumstances are similar or far worse. And the future doesn’t hold much promise for them. According to the Republic of Armenia’s National Statistical Service (NSS), 34.1 percent of our population today lives in poverty. For the first time since1998, we are witnessing an increase in the country’s poverty rates. According to the recently published NSS report, every fifth person in Armenia is considered to be in poverty. What is more alarming is that 117,000 people in our homeland live on 17,486 AMD a month (approximately $48). Forty-eight dollars a month for food, heat, water, gas, clothes, transportation, and medical services. . . . This group is considered to be in extreme poverty. The NSS measures a family’s standard of living by their consumption. What can a family consume on $48 a month? Imagine the entire population of Inglewood, California, or Boulder, Colorado, surviving on $48 a month. Now imagine yourself living on $48 a month — not in Inglewood or Boulder — but in a village or town in Armenia when one kilogram of locally produced cheese costs about $8, and a pound of ground beef hovers at about $6, thanks to rising inflation. It gets worse. The same report states that approximately 47.2 percent of the population of Shirak lives in poverty. Almost half of the entire population living in poverty… As a result of the global economic downturn, in the course of one calendar year, 2008-2009, 214,000 people fell into poverty in our homeland. Of those children living in extreme poverty, 44.2 percent of them live in households where there is no refrigerator. This is what happens when the state’s social and economic policies are flawed; when there is an unequal distribution of wealth and when the concept of equal opportunities and market competitiveness is thrown out the window as more and more power and wealth is being concentrated in fewer and fewer hands. When corruption at every level decimates even the best of social and economic policies by ensuring funds are redirected into the pockets of those with power and endless greed. The day I read the NSS report on poverty, I was invited to a friend’s home for drinks with some local women I had never met. They all live in the same apartment complex, one of the most beautiful buildings in Yerevan, in an affluent neighborhood right in the heart of the city. Meeting new people and forging relationships is part of our experience of living in Armenia. When I arrived, what struck me most was how well these women were dressed for a casual evening where all they needed to do was take an elevator ride to reach their destination. I don’t know much about designer clothes or jewelry or handbags, but I can read, and from the Hermes bags to the Bvlgari jewelry to the meticulously crafted shoes and clothes these women were wearing, I was speechless—a rare occurrence in my life. Hadn’t I just read that morning that 34.1 percent of our population lives in poverty in Armenia? As the evening wore on, discussion ranged from the status of women in society and families (briefly) to the new Tommy Hilfiger store that had opened on Northern Avenue (extensively). We spoke about our children, shopping in Dubai, and where to buy the best furniture in Yerevan. Surreal is not a word to describe that particular day in my life. The extremes that make up the mosaic of our lives are exhausting and frustrating. While I don’t have the right to begrudge these women the obvious prosperity and wealth that surrounds them, I do have the right to wonder if they wonder about the NSS statistics. I would bet my life that the overwhelming majority of this class does not. While they may have, at one point in their lives, been faced with poverty, now that they have acquired this new found wealth, they have quickly forgotten where they have come from and now spend their days debating whether to buy a Hermes bag or a Chanel on their annual trips to Dubai, Moscow, or Paris. The battle of poverty and prosperity endures in our country. And while poverty rates are exceeding all of our expectations, we must all learn the values of what good citizenship means. It means extending a hand to the helpless; it means creating programs that will help elevate the lives of children who live in unbearable conditions; it means, at the very least acknowledging that hardship and poverty surrounds us at every turn and it means taking a stand and doing something about it. As we prepare to celebrate the 20th anniversary of an independent Armenian republic this year, I hope that we can finally begin to understand the value and fragility of statehood. While the total eradication of poverty in Armenia may be unrealistic, we must strive to create conditions where those less fortunate than us can find the means of pulling themselves out a vicious cycle that has imprisoned them. Each of us will have to find our own way to help create those conditions: some will do so by repatriating, some by investing in businesses that work within the law, some by contributing to one of the organizations that do good work, others by advocating for less corruption and wiser government programs. While prosperity is certainly not an evil, it is unforgivable when only a handful of families benefit from the limited resources of this small plot of land we call the motherland. Maria Titizian in a Vice-President of the Socialist International and the Armenian Revolutionary Federation’s representative in Socialist International Women. She also the director of the Yerevan-based Hrayr Maroukhian Foundation.

Wholesale Handbags – and the War of the Worlds

Wholesale Handbags are in the midst of a truly cultural revolution, and it’s going to result in an epic battle for the top spot, as designers and manufacturers go toe to toe with their heaviest artillery in 2011. We’ve seen all kinds of styles and designs hit the streets in the past year; but with the nation’s economy showing continued growth in retail spending, the heat is on for the ultimate in eye-catching fashion. What started as a little skirmish on the borders of good taste and practical sensibilities, turned into an all-out attack from the front lines of designer-inspired creations coming out of every imaginable location around the globe. The output was not only limited to China, but a whole slew of new contenders made their appearance as Vietnam and India broke onto the scene with a variety of wholesale goods to make things interesting. Things have gotten so heated in the industry, that the U.S. International Trade Commission (USITC) has made the decision to vote the institution of investigating certain handbags, luggage, accessories, and packaging thereof. While there will be a growing list of items under this new regulatory policy, the products at issue for now in this investigation are handbags, luggage, accessories, and related packaging that bear certain monogram designs. On the other hand, the environment for new and upcoming designers has never been better, and the increased regulations regarding trafficking of fakes will only add to the incentive to promote the creation of innovative designs that consumers will accept readily. Talent from as far away as the Philippines comes in the form of Nine West’s appointment of designer Rafe Totengco, who had previously launched his own namesake brand in 1995, with great success in international markets. A celebratory party was held by Nine West to attract media attention, and to showcase the new designer works. Not to be outdone by anyone, Chanel has also been hard at work trying to relieve itself of brand-numbness, by giving the company’s new Mademoiselle line a fresh face to promote the product. Blake Lively, the hot A-list celeb from the Gossip Girl series, is going to be putting her best face forward fro the new line of handbags, as she has been an avid fan and follower of Karl Lagerfeld for many years. As she excitedly put it, the choice was beyond her expectations. “ A dream come true is an understatement. I can say that I feel like the happiest, luckiest girl around!” Other notable stars that have carried the Chanel name to new heights are Lily Allen and Vanessa Paradis, Kate Moss, and Keira Knightly, to name a few. Along the same lines of the Chanel brand and styling trend, Nicole Richie is making news as the TV celebrity-turned-designer has admitted to having a “closet full of Chanel handbags” as one of her weaknesses in life. Often voted by celebrity reviews and fan sites as the world’s most stylish woman, Richie has also given a nod to designers who produce super chic Wholesale Handbags, like famed designer Alexander McQueen

V.I.P, Samsonite to foray into handbags for women

The Rs 1,500-crore (Rs 15 billion) ladies handbag market will see some major action this year, with luggage makers V.I.P and Samsonite contemplating entry soon. Dilip Piramal, chairman of the Rakesh Jhunjhunwala-backed V.I.P Industries, confirmed his company was putting a business plan in place for an entry into the market in about six months from now. Samsonite will launch its collection next month, said the chief operating officer, Subrata Dutta" "We are launching a casual bag range for both men and women next month. This will include a collection of ladies handbags as well," he said. Piramal declined to indicate the pricing and positioning of V.I.P's collection. Datta said his range would be mid-priced, beginning from Rs 2,500 a piece. The range will be called Samsonite Red, he said. The interest that luggage makers are showing in the competitive ladies handbag market is not without reason. Growing at 15 per cent per annum, this is far more than the growth the organised luggage market is seeing, at about 11 per cent yearly, said Purnendu Kumar, associate vice-president at retail consultancy Technopak. V.I.P has close to 60 per cent share in the Rs 1,300-crore (Rs 13 billion) organised or branded luggage market; archrival Samsonite has close to 30 per cent. The total luggage market is pegged at Rs 2,700 crore (Rs 27 billion), with both organised and unorganised at 50 per cent each. The ladies handbag market, on the other hand, is style-driven, with collections undergoing a change every so often. Some of the key players include Hidesign and Baggit. Being a fashion accessory, most apparel makers also dabble in ladies handbags, Kumar said. According to Piramal, a foray into ladies handbags will give it a more well-rounded presence. "We were traditionally strong in briefcases. With the decline of hard luggage, we began focusing aggressively on soft luggage, a key component of our business today. Ladies handbags would be another important area for us," he said. For Samsonite, the entry into ladies handbags complements the work done by its sister concern, Bagzone. The latter is promoted by Ramesh Tainwala, the Indian joint venture partner in Samsonite. In 2010, Bagzone, which manufactures and retails bags, launched an in-house brand called Lavie. "This brand is targeted at the ladies handbag market," said Sandeep Goenka, business head, Bagzone. Lavie products are priced between Rs 1,600 to Rs 3,000 a piece. Plans are afoot to launch exclusive Lavie stores, Goenka said.

Her own bag: model Camila Alves crafts luxe leather handbags

Matthew McConaughey wasn’t the only one in his household hard at work while he was in New Orleans recently shooting the movie, “Killer Joe.” Camila Alves Brazilian model Camila Alves, McConaughey’s girlfriend and the mother of his two children, held a trunk show here to introduce her handbag line, Muxo, to the local fashion scene. The event packed a Champagne-sipping crowd into the tiny upstairs showroom of Designer Social, the handbag and accessories shop above Scriptura on Magazine Street. Alves started designing handbags about five years ago with her mother, who has a background in fashion and interior design. The leather bags have a polished tribal feel, from the hand-cut fringe and pinwheel-like flower appliques to cryptic symbols, whipstitching and distressing. The look is “Gossip Girl” meets Pocahontas. Alves, who’s as charming as she is beautiful, moved from Brazil to Los Angeles when she was about 16. She spent her first few years in the United States cleaning houses and waiting tables before her modeling career took off. By 19, she was walking the runway for Carolina Herrera and posing in ads for Armani. “When I started modeling, I started to make money, and I began to think about ways that my mom and I could do something together,” Alves said. Traveling for her modeling gigs required a really good handbag, one that could stand up to the rigors of airplanes, hotels, cabs and backstage craziness. “Every handbag I had would break or fall apart,” she said. “The ones that did stay together, the label handbags, everybody else would have it.” So Alves and her mom came up with their own design. “People started asking where I got it,” she said. “We started making them out of our garage. We couldn’t hammer in the middle of night, so we put everything in our car and would drive to a parking lot so we could hammer without bothering anyone.” The line now features more than 60 clutches, totes, shoulder bags and satchels. “We still touch every single bag,” she said. “We do the distressing. We don’t teach that to anybody, and you can’t machine copy it.” The bags range from $212 for a small, casual shoulder bag to $1,800 for a large fringe statement piece. Alves spent two months in New Orleans this fall while McConaughey was working on the film. She said the whole family was charmed by the city. And though they have two small children in tow these days — son Levi is 2 years old and daughter Vida just turned 1 — Alves says she’s not slowing down. “I grew up with my parents working for a living, and I never plan to stop working myself,” she said.

Balenciaga City Tote in grenadine for spring 2011

Balenciaga City Tote is one of the most popular styles by design house Balenciaga. Grenadine, called peony in the United States, is one of the spring 2011 colors that Balenciaga is offering for the spring collection. Grenadine happens to be the “IT” shade of pink that Pantone has declared to be the “IT” color for spring 2011 under the name Honeysuckle. This makes the Balenciaga City Tote in Grenadine one of the most highly sought after handbags for spring 2011. The Balenciaga City Tote is a medium sized handbag that features a detachable and adjustable shoulder strap. Handbag Fashionistas can easily carry the Balenciaga City Tote by using the two top handles or by using the shoulder strap. The shoulder strap can be adjusted to be worn in a longer length which allows the handbag to hit at the hip; which was the length all over the New York, Milan and Paris runways for spring. Balenciaga’s City Tote is offered in vintage lambskin and four choices of hardware; regular, giant silver hardware, giant gold hardware and giant covered hardware. The City Tote by Balenciaga features a zipper closure, front zip pocket, cloth lining and an interior zipper pocket. All Balenciaga City Totes come with a detachable mirror and offer a 4” top handle drop. The Balenciaga City Tote measure in at 15” X 9.4” X 5.5” and is made in Italy. In order to ensure you purchase an authentic Balenciaga Handbag, visit an authorized retailer such as a Balenciaga Store, Neiman Marcus or Barney’s.

Citadel Hiring Citigroup, EFG for Taqa Share Sale

Citadel Capital SAE, an Egyptian private equity company with $4 billion of assets, is in the process of hiring Citigroup Inc. and EFG-Hermes Holding SAE to manage the initial public offering of its energy unit, Taqa Arabia. The shares will be sold “around June,” Citadel’s Chief Financial Officer Ahmed El Shamy said in a telephone interview today, declining to provide details. Citadel, which first said in September 2009 it may sell shares of Taqa Arabia, has held off making the decision until market conditions improve. “Citadel is finalizing the agreements with the banks and is in the process of signing,” he said. “The key is investors will be able to see the market value of Taqa,” Hatem Alaa, a Cairo-based analyst at Egyptian investment bank AlembicHC, said by telephone. Citadel shares rose 3.8 percent to 9.53 Egyptian pounds at the 2:30 p.m. close in Cairo, valuing the company at 6.3 billion pounds ($1.1 billion). The stock has gained 17 percent in the past two weeks. “We’ve been seeing a very solid trend over the last few weeks from institutional buyers,” El Shamy said Construction of Egyptian Refining Co.’s $3.6 billion oil refinery, Citadel’s biggest project, will start “immediately” after final documents are completed within the next few weeks, El Shamy said. Cairo-based Citadel has investments in the Middle East and Africa, according to its website.

UPDATE: LVMH Ups Stake In Hermes Capital To 20.21%, May Buy More

French wines, spirits and luxury goods group LVMH Moet Hennessy Louis Vuitton SA (MC.FR) said Tuesday that it has built its stake in the capital of French luxury goods company Hermes International SCA (RMS.FR) to 20.21% from the previously disclosed 17.1% and said it could make more acquisitions as market circumstances allow, thus turning up the heat in its disputed attempt to build a bigger stake in family controlled Hermes. Hermes declined to comment on this latest LVMH shot in its battle to remain independent of the big diversified luxury products group controlled by French financier Bernard Arnault. The Hermes family, which consists of fifth- and sixth-generation descendants of the company's founder, collectively owns 73.4% of their company. In a terse news release, LVMH said it "has crossed the threshold of 20% of Hermes International and today holds 21,338,675 shares." It didn't elaborate. But the company added that it has further access to 204,056 Hermes shares via an equity swap that it can exercise at a future date. In a separate statement, the French bourse regulator Autorite des Marches Financiers said LVMH had informed it that the Hermes holding rose above the 20% mandatory reporting threshold last Friday, as subsidiaries bought the shares in transactions on and outside the stock market. At present, five LVMH entities hold the aggregate 20.21% of the stock and 12.73% of the votes in Hermes. The LVMH Fashion Group holds the biggest chunk of that stock--10.05%, according to the company's regulatory filing. LVMH told the AMF that it isn't acting in concert with outside parties in its Hermes share acquisitions. LVMH also reiterated that it doesn't plan at this time to seek the nomination of a representative to the Hermes board of supervisors, and that it doesn't envisage taking control of Hermes or making a public offer for its shares. Under current French rules, LVMH would have to launch a public tender offer for Hermes if its stake grew beyond a third of the capital, which would be unlikely given the family's 73.4% shareholding. "The investment of LVMH in Hermes International is strategic and long term," LVMH said in its regulatory filing, repeating its previously stated intention. "LVMH supports the strategic vision, the development and position of Hermes International." Members of the Hermes family said earlier this month that they will set up a holding company that will keep more than 50% of the Hermes International, in an attempt to fend off LVMH, although the move seemed redundant as Hermes is a limited partnership, which alone makes it pretty much impregnable to attack. The family is awaiting approval from the AMF for the holding company maneuver, without being required to launch a full takeover. The AMF is expected to issue its decision in the coming weeks. LVMH, which the world's largest luxury-goods company, surprised markets and the Hermes family in October when it said it owned 17.1% of the famous saddlery maker, in one swoop crossing three ownership thresholds requiring disclosure under French market regulations. Arnault built the bulk of that stake by exercising equity swaps secretly acquired several years ago. While LVMH insists it isn't out for a takeover, Hermes executives and family members are wary of LVMH's presence in its capital. LVMH Chairman and Chief Executive Arnault built his luxury empire by collecting smaller, often family run, companies.