Financial crisis heralds era of "new seriousness"

By Tom Bergin

LONDON (Reuters) - Power tools roar as an army of workmen rushes to ensure Europe's largest city-centre shopping mall opens on time, but marketing executives say the crisis in global financial markets has accelerated a trend among consumers to reject conspicuous consumption.

The $3 billion (1.87 billion pound) Westfield centre in West London will have a strong focus on luxury when it opens on Thursday. Promotional material cites Louis Vuitton, Prada, Tiffany and Gucci among its stores but Managing Director Michael Gutman downplays these.

"We have a mass-market offer here, even though a couple of the precincts have attracted particular attention," he told Reuters by telephone.

Executives say other retailers are quietly dropping the term "luxury" from their marketing material in favour of phrases depicting shopping as relaxation and time shared with family and friends.

With credit harder to obtain, mortgage costs rising and unemployment growing in the United States, Europe and Japan, clever advertising may not be enough to persuade those who can still afford it to part with their money.

"In grim times it becomes distasteful or simply unfashionable to spend money on bling or what you might call conspicuous consumption," said Rory Sutherland, vice-chairman at advertising agency Ogilvy.

"There will be a trend towards Swedish, Lutheran-style minimalism," Sutherland predicted, referring to the modest, even austere, lifestyles favoured by Lutherans and Swedes by reputation.

Bentley-driving broker Scott David said people in the City of London financial district who could still afford it were hesitating before spending conspicuously.