MANILA, Philippines?At the rate luxury shops are multiplying, it?s hard for the skeptic not to raise a brow and ask, ?Is the state of the economy really as bad as the headlines make it out to be??

In just six months, the Swiss luxury label Mont Blanc has opened two boutiques in Manila?last December at Rustan?s Makati, and recently an even bigger space at Shangri-La Mall in Mandaluyong. The Tantocos of Rustan?s acquired the local franchise to the 102-year-old brand in 2001.

?Let?s take a macro look,? said King Chau, regional marketing director of Mont Blanc Asia-Pacific. ?A Goldman Sachs research forecasts China to overtake Japan as the biggest luxury consumer by 2015? Our strategy is ?Think retail.? In 2005 Mont Blanc China took over the business from our (retail agents) and expanded to 100 boutiques in China in the last three years alone.?

But how does the Philippines figure into the equation?

?Mont Blanc is a global brand,? Chau noted. ?Our customers are well educated, successful and have power. They can travel to international cities, and one of them is Manila. So we don?t just focus on China. We keep a balanced strategy.?

To date, the brand, mainly known for writing instruments and which has diversified into luxury watches, fine jewelry and leather goods, has 150 Mont Blanc-owned points of sales in Asia, with 200 more run by retail partners.

?We got hit [by the slump] but luckily, it?s not as serious as in the United States,? Chau said. ?Ten years ago, we were faced with the same thing when we introduced our watches. But as a reputable European company, we have a commitment to provide quality products. After 10 years we now see the fruit. The watch-making industry is two to three times higher than the average growth rate. We look for long-term investment. We can?t stop just because of the downturn.?

In the Philippines, he said, Mont Blanc sales slowed in the last three years ?because of its limited distribution.? As in its strategy in all Asian cities, Mont Blanc closed its small retail corners and opened boutiques in their stead. ?There?s no use in having many if the quality isn?t good. Mr. [Rico] Tantoco is supporting us and we see that we have a good future in the coming years.?

Mont Blanc is now courting the female market with the recent introduction of products for women, all of which are available locally. Previously, 50-60 percent of the Mont Blanc customers were women, according to Chau, who would buy gifts for the men in their life. Thus silver jewelry was created for women. Last year, the fine jewelry line was launched, following the unveiling of its patented diamond cut, the Mont Blanc star, at the brand?s centenary in 2006. For this purpose, it had signed on high-profile celebrities like Reese Witherspoon as spokespersons.

But with many other luxury brands whose heritage is watch, fine jewelry or leather goods, how would Mont Blanc, whose own heritage is writing instruments, compete?

?What we offer isn?t just a pen or a watch,? Chau said. ?What we sell is love. No one buys a pen for writing, or a watch to tell time. What we offer is emotional appeal. People buy watches or pens to reward themselves. There?s an intrinsic value that can be retained and passed on to generations. It?s not like fashion [that?s disposable]. We try to offer uniqueness with limited-edition products and collector?s pieces.? Globally, Mont Blanc pens still sell the most, he said, but in Asia, the top seller is its watches.

And if people buy, it ceases to matter if they?re new money. ?Ten years ago, that was a valid point of concern [for China],? Chau said. ?Now they?re more sophisticated. They have the ability to appreciate craftsmanship. They ask more in-depth questions compared to Europeans or Americans. They have more info to support their buying decisions.?

Chau added, ?Asians have their own appreciation of luxury goods. They want to own because they want to show that they?ve reached the status.?