Recession, an Excuse

Recession is a buzzword. You hear people talking about it and sometimes using it as an excuse, but for Rahul it is business as usual. Recession is what has impacted him the least. He goes to his office in his Armani suit and pair of chic Gucci sunglasses and drives around in his fancy Mercedes convertible. He is able to afford his lifestyle because “those who are rich in the true sense have enough reserves to maintain their lifestyle. In India, we don’t just live by our savings but those of our parents and grandparents put together. We have a good buffer to last us during the bad times. It’s the noveau rich who are affected by the turn of the economy.”

A recent article in a leading magazine supports his thought. Leading fashion designers and luxury houses have seen no let-up in demand from their luxe clientele. Top designer Shantanu-Nikhil say that, “even though overall prices for their Spring-Summer line have increased, the demand is still holding good”. The duo’s business has grown at a consistent 20% over the last year but they admit to a faster growth had the aspirational segment not slowed down its purchases. “The only negative impact of the recession that we have seen is the aspirational segment who has taken a step back. The growth of that market has slowed down for the time being.”

Kavita who takes close to 4 trips abroad a year, is aware of the recession affecting the world with the shopping malls going empty, things getting cheaper with everything going on sale including homes. However this couldn’t have been a better time for her. She gets more for the same amount of money, more diamonds, more travel, more value. She for sure isn’t complaining.

Opportunity: Make people enjoy the recessionary times