That dreadful trading statement from Royal Doulton makes it clear that, even with Paul Costello doing the design, Waterford Wedgwood has its work cut out to generate much growth in the Wedgwood side of the business over the next year of two.

Just to repeat the extent of the Royal Doulton problems. Jobs have been slashed by 1,200, sales are down 5 per cent in the 11 months to November and sales next year are expected to be below those of 1998. Top that with no final dividend and a forecast that even Christmas trading will be poor and you get a real tale of pre-Christmas woe for Royal Doulton shareholders.

Waterford Wedgwood might suggest that Wedgwood is aimed at the higher end of the market and will not be as affected by a slowdown. But recessions in the Far East and at best a slowdown - at worst a recession - in Britain means two key markets for both Royal Doulton and Wedgwood have been hit hard.

Bad enough that the Osaka housewife is cutting back in her spending, but when the Croydon consumer decides to scale back spending, any manufacturer of high-unit cost items will feel the pinch.

Brian Patterson's Wedgwood teacups are a long way up the price scale from Joe Moran's perfume, and that will tell on the British high street.