When you are down to your last hundred of millions, the most important is to save your face. It is the question of who is in and who is out. One businessman told us: “Nobody knows how many digits you lost in your bank account. I have the same Lexus, the same 2 bodyguards. So on the outside people will think my business and I wasn’t affected by the credit crunch.”
In Russia, it is very important to maintain connections. Thus the places where you can show off and make connections are always in demand in Russia.
This is why we see that even though over a year, 215 restaurants were closed in Moscow, 358 new ones were opened. Rich Russians still want to feast in a high-profile way to network.
Insight: One of the new drivers in the luxury consumption is that people are looking for simple/affordable ways to be still ‘in’: now it is even more important to look fresh, still throw parties with exclusive but more affordable champagne, etc. Show-off behavior is less kitschy now.
Yet, it can be hard to conceal your financial troubles when you live on the shore of a local sea and you share the pier for your yacht with your neighbors. This is when they will notice when you had to sell your yacht and they probably know your factory is not doing well. Next time you might not get invited to some event where a lucrative deal can be concluded.
In Russia, it is very important to maintain connections. Thus the places where you can show off and make connections are always in demand in Russia.
This is why we see that even though over a year, 215 restaurants were closed in Moscow, 358 new ones were opened. Rich Russians still want to feast in a high-profile way to network.
Insight: One of the new drivers in the luxury consumption is that people are looking for simple/affordable ways to be still ‘in’: now it is even more important to look fresh, still throw parties with exclusive but more affordable champagne, etc. Show-off behavior is less kitschy now.
- Ilia
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