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

Essence of Life

Preeti did not think that post her marriage, living in a home which equaled to the size of a servants quarter back in her home town would be termed as ‘luxurious’. Yet when she settled in Mumbai post her marriage, her friends thought she was really lucky she was staying in a spacious 3000 sq.ft individual home at a tony address in the city. Having come from a royal family in Bhopal (a small city up north), she was brought up in a palatial home with close to 30-40 servants, family always dressed in fineries, all of which were hand crafted especially for them.

She hasn’t yet been able to come to terms with the maddening city of Mumbai where the ‘real thing’ is lost in the glitz and glamour. She cannot find a place in this city where she can enjoy both her cup of coffee and find peace with nature. Sending her kids to the most expensive school ISN’T luxury for her but having them spend time horse riding or fishing, being one with nature IS.

For her luxury is all about enjoying the essence of life, the freedom and the space.

Opportunity: Don’t create luxury, it exists in the ‘real thing’

Borrowed Imagery

When I called Palak to fix an appointment with her, she told me that she would probably be the wrong person to talk to because she rarely consumes any luxury brands. She would rather pay half a million for a hand crafted dress made to her taste rather than run after brands. I thought that it was impossible in today’s world to stay away from brands especially if you are a socialite who gets written about on Page 3 (a page on which celebs, the who’s who of the country get featured) of the leading newspaper. But she proved me wrong when I met her. She got her outfits tailor-made to her taste, she got her bags made from fabric leftover from her outfit so they match perfectly, her shoes are most often hand crafted and she has a family jeweler who designs to individual tastes.

“Its not just about the money but its about the appreciation for the art, the handwork and most importantly, what I wear, what I carry has to be a reflection of who I am and not the other way around.” Why be judged by the brands that one carries and live in the shadow of a brand’s imagery?

“Everyone carries a LV bag, sometimes the same one but when I carry a bag made from my mother-in-law’s rare saree embellished with stones and sequences – its my own creation which no one else has, I stand out in the crowd, it makes 10 heads turn. And all this at almost no cost at all.”

Opportunity: Personalize, so brands can borrow from user’s imagery