Luxury, the term has always been associated with 'exclusive', 'difficult to obtain', 'unique', 'extremely desirable' and hence, 'expensive'. 'Expensive' was always a symptom of what made something luxurious!
Today however, People seem to have confused 'being luxurious' for simply 'being expensive'!! Why otherwise would a Louis Vuitton monogram bag, one of the most commonly seen things around the globe, mass produced in India, made in canvas ( not even leather), still be considered a luxury to own?
Friday, August 26, 2011
Tuesday, June 1, 2010
A few days ago... at the DLF Emporio...
The other day I was in Delhi with my parents for my cousin’s wedding. We had some free time before we had to head back for the airport so I dragged them to the DLF Emporio, just to look around ;)
My mom liked a LV patent leather bag and a bright red Bottega Veneta... but my dad didn’t seem to be particularly interested. After checking out a few more stores, we ended up in front of a Harry Winston timepieces store. That was the 1st time since we’d entered the Emporio that I saw my dad’s eyes sparkle. He saw this brilliant watch in the window and went in. A young lady – very much Indian - dressed in a pink western formals greeted us with a smile. My dad, looks like an average middle-aged Indian man, very down-to-earth, with a radiant, stern expression on his face and like most Indian men of that stature, a growing waistline. My mom on the other hand has an enigmatic elegance about her which instantly would identify her as a luxury consumer. I am a mixture of both, and on that particular way, was dressed more like a junkie in a ‘Hare Krishna’ top. My dad, though didn’t know the details about the brand Harry Winston, knew that the watch he liked would be priced around Rs. 25 lakhs. And so it was. I was mighty impressed with his guess though he seemed pretty focused on that watch he’d set his heart on. The young girl in pink rattled off her sales pitch, about Harry Winston being the best and the watch being in 18 Karat rose gold with a certain number of VVS quality diamonds and automatic movements...etc...etc...
Just then, a question that my dad asked... stumped both her and me! “What’s the re-sale value of these diamonds?!” His question was genuine and I knew from his expression that he expected a straight answer, just as straight and innocent as his question was! But in response, he got a flabbergasted, almost disrespectful, “You don’t resale a Harry Winston! People who buy it buy it for the brand... how can you even say that you want to resale the diamonds!!!!” Not that she was wrong... she was probably trained on the product and didn’t know the answer, but she failed to understand the sentiment behind that question. The question wasn’t meant to ask the resale price, it was meant to get the true value of the item that he was investing in... and Indians are verrry good at this! But the European training that was given, didn’t tackle these simple, innocent but extremely smart questions that only a moneyed Indian businessman would ask!
Anyways, WRONG ANSWER + WRONG TONE & MANNER = Daddy not impressed = Lost sale!
Moral of the Story: Unlike the Europeans, Indians and especially the first generation Indians, are very particular about whether they are getting their money’s worth. They do not go by the reassurance of the brand name only; they also want to know their product equally well, especially in the case of watches and jewellery. As I have often mentioned... A watch to a man is what Jewellery is to a woman. Indians are used to getting the price break-up on jewellery and sub-consciously the same applies to anything else that involves gold, diamonds or precious materials like in the case of that watch.
When entering the Indian market and training their staff for the Indian market, luxury marketers must train their staff in a way that they can handle the Indian sensibilities. These nuances can make or break a sale and at the point of sale, not being able to anticipate questions and not having the right answers or presence of mind can be disastrous!
Monday, February 1, 2010
Are We Guilty?!
India is a land of inequalities, and we as Indians, learn to accept, adapt and live with & around these inequalities. The concept that children from the aristocratic, richer families mainly interact and socialize in similar social circles is not essentially true in this case. Most Indian parents, having gone through a lot of tough times in their own lives, make sure that their kids don’t take things for granted and in order to discipline them and show them the ‘real world’, send them to common schools and colleges alongside several other kids from different social backgrounds. Hence, there is a co-existence of the rich and the huge middle-class. As these two kids grow alongside each-other, one from a rich family and one from a middle class family, two things tend to happen....
1)the middle class child, tends to aspire for his rich friend’s lifestyle
2)the rich child starts feeling guilty about his wealth!!!
It’s a natural phenomenon... I have seen students asking their drivers to drop them far from the college gates, slightly embarrassed of their expensive car! And it’s not just about kids or teenagers... this is just the age when it all begins. We have seen our mothers not wear expensive diamond jewellery in front of close relatives who can’t afford the same. When a friend, who can’t afford the same watch, asks about its cost, one usually scales it down considerably just so that they don’t feel bad... Why does one do such things?! I believe that it’s out of guilt... guilt of making the other person feel lesser... the guilt of making someone else envious... And if they are so guilty of showing off their wealth to friends and close relatives, then one can imagine if people would actually show it off on the streets!!!
Several rich Indians buy swanky cars like Porsche or the Rolls-Royce, but never take them out to work! They still go to office in their lowest model of the Mercedes, the basic BMW or Honda Accord. Again, guilt – “I don’t want my staff to feel that I have too much money!” (Tax evasions is another issue – ‘I don’t want to come under the public eye’ – but that could be a logical justification to the sub-conscious guilt i.e. ‘I don’t want people to know that I have so much money and feel jealous’)
So when does the Rolls-Royce or the Berkin or the Chanel dress actually come out of the closet... only when they move out in their own circles - socializing, in parties, get-togethers, special occasions. Hence, the consumption of luxury products in India is very specific to occasions, leading to infrequent usage. So, how can luxury brands drive higher sales, if the usage occasions are themselves limited?! It’s a huge opportunity, locked away in the socio-cultural construct of the Indian value system and I believe that the key to unlocking this opportunity is the high street brands in India.
The interesting thing about brands like Tommy Hilfiger, Mango and Esprit in India is that they aren’t just high street brands; they’re in fact considered semi-luxury brands! The accessories and starting lines of these brands are actually well within the reach of the Indian middle class, however, the semi-luxury status of these brands, intimidates them. There’s a firmly rooted belief in India... ‘Jitni chaddar ho, utne hi pair failao’ (spread your legs only till the length of your blanket) Hence, Most middle class Indians don’t even enter these stores thinking that they will not be able to afford it.
And alongside this, Indians also tend to have an unusually high self respect. In India, one will never find a queue outside a luxury brand store like in other Asian countries! Indians don’t like window shopping unless it is with the intent of buying soon... We don’t like to enter a store and feel that we can’t have it!! Hence, most middle class Indians will not even consider a Mango or an Esprit, even though they might actually be able to afford it!! During a research I was working on for a major fashion retailer in India, I came across dozens of consumers who spent large amounts of money in Indian stores like Globus or Pantaloons, but had never even thought of visiting an Esprit or even a UCB outlet, thinking they're too expensive. It’s only when I took them to these stores that they realized they could very well afford it!
This is a huge opportunity for these high street brands which they have been unable to leverage in spite of their presence in departmental stores. It’s much easier to lure people to check out your collection in departmental stores. These brands could probably have more accessories, belts, wallets, t-shirts, etc. and in-store communication to attract footfalls from within the departmental store, even in the non-‘sale’ days. But they must be cautious enough not to lose their semi-luxury status!
Acceptance of semi-luxury brands by the middle class friend leaves the rich one free of guilt to show off his luxury item!! Hence, the opportunity unlocked for the high-street brands can actually unlock a much larger opportunity for the luxury brands here. It also gives the richer consumers the excuse to start consuming their luxury products more regularly, on a daily basis, thereby benefiting both! Thus, a slight bit of an inclusive strategy adopted by the high-street brands gives the runway brands the liberty to remain with their exclusion strategy. In India however, both seem to be following the same exclusion strategy, hence, I believe the problem for both.
1)the middle class child, tends to aspire for his rich friend’s lifestyle
2)the rich child starts feeling guilty about his wealth!!!
It’s a natural phenomenon... I have seen students asking their drivers to drop them far from the college gates, slightly embarrassed of their expensive car! And it’s not just about kids or teenagers... this is just the age when it all begins. We have seen our mothers not wear expensive diamond jewellery in front of close relatives who can’t afford the same. When a friend, who can’t afford the same watch, asks about its cost, one usually scales it down considerably just so that they don’t feel bad... Why does one do such things?! I believe that it’s out of guilt... guilt of making the other person feel lesser... the guilt of making someone else envious... And if they are so guilty of showing off their wealth to friends and close relatives, then one can imagine if people would actually show it off on the streets!!!
Several rich Indians buy swanky cars like Porsche or the Rolls-Royce, but never take them out to work! They still go to office in their lowest model of the Mercedes, the basic BMW or Honda Accord. Again, guilt – “I don’t want my staff to feel that I have too much money!” (Tax evasions is another issue – ‘I don’t want to come under the public eye’ – but that could be a logical justification to the sub-conscious guilt i.e. ‘I don’t want people to know that I have so much money and feel jealous’)
So when does the Rolls-Royce or the Berkin or the Chanel dress actually come out of the closet... only when they move out in their own circles - socializing, in parties, get-togethers, special occasions. Hence, the consumption of luxury products in India is very specific to occasions, leading to infrequent usage. So, how can luxury brands drive higher sales, if the usage occasions are themselves limited?! It’s a huge opportunity, locked away in the socio-cultural construct of the Indian value system and I believe that the key to unlocking this opportunity is the high street brands in India.
The interesting thing about brands like Tommy Hilfiger, Mango and Esprit in India is that they aren’t just high street brands; they’re in fact considered semi-luxury brands! The accessories and starting lines of these brands are actually well within the reach of the Indian middle class, however, the semi-luxury status of these brands, intimidates them. There’s a firmly rooted belief in India... ‘Jitni chaddar ho, utne hi pair failao’ (spread your legs only till the length of your blanket) Hence, Most middle class Indians don’t even enter these stores thinking that they will not be able to afford it.
And alongside this, Indians also tend to have an unusually high self respect. In India, one will never find a queue outside a luxury brand store like in other Asian countries! Indians don’t like window shopping unless it is with the intent of buying soon... We don’t like to enter a store and feel that we can’t have it!! Hence, most middle class Indians will not even consider a Mango or an Esprit, even though they might actually be able to afford it!! During a research I was working on for a major fashion retailer in India, I came across dozens of consumers who spent large amounts of money in Indian stores like Globus or Pantaloons, but had never even thought of visiting an Esprit or even a UCB outlet, thinking they're too expensive. It’s only when I took them to these stores that they realized they could very well afford it!
This is a huge opportunity for these high street brands which they have been unable to leverage in spite of their presence in departmental stores. It’s much easier to lure people to check out your collection in departmental stores. These brands could probably have more accessories, belts, wallets, t-shirts, etc. and in-store communication to attract footfalls from within the departmental store, even in the non-‘sale’ days. But they must be cautious enough not to lose their semi-luxury status!
Acceptance of semi-luxury brands by the middle class friend leaves the rich one free of guilt to show off his luxury item!! Hence, the opportunity unlocked for the high-street brands can actually unlock a much larger opportunity for the luxury brands here. It also gives the richer consumers the excuse to start consuming their luxury products more regularly, on a daily basis, thereby benefiting both! Thus, a slight bit of an inclusive strategy adopted by the high-street brands gives the runway brands the liberty to remain with their exclusion strategy. In India however, both seem to be following the same exclusion strategy, hence, I believe the problem for both.
Sunday, October 25, 2009
The future of luxury fashion brands...
way ahead post the crisis...
Anywhere in the world, all the shops of any luxury brand look the same. The product offering is the same, the look and feel is the same... luxury brands, or should I say ‘luxury fashion brands’ have taken standardization to a different level – Over-standardization! I’m not saying that standardization is bad...in fact, it is good! But over-standardization can have a huge negative impact on the brands’ performance and sales.
Let’s take India for example. Why do luxury fashion brands present in India, not sell in India? It’s not like people don’t buy luxury fashion. But they buy the same thing abroad. Why don’t they buy it from India? Well, why should they?!!?
Is there anything that the brands provide here that they can’t get abroad??!! NO!
Plus they have much higher duties levied on them. So if the same is available in Dubai, New York or Singapore, minus the taxes, then why not buy it from there? A person, who can afford their products, can obviously afford foreign trips and chances are, is planning one at any given point in time. And when one travels, s/he is always in a better mood to shop and tends to spend money more freely than s/he would when at home. Then why should one shop in India?!? Brands give them no reason to do so...! And the same goes for all the countries and cities, the world over. The luxury stores in London have majority of their sales coming from Arabs and people from the Far East... New York has a mixture of other nationalities, Dubai from Russia, India and other Asian countries, Miami from South Americans... Hence, it’s the same story everywhere!!
However, Mumbai and Delhi are not considered as major international shopping destinations... nor has our Indian government done much in order to promote tourism in the big Indian cities. How then are these luxury brands going to survive in India?
According to me, they can only if they are able to sell to Indians!
In fact, I believe that this is something brands must look at doing as a corrective measure in the post-crisis period. Like all luxury experts say – ‘going back to the core business’... I say, also ‘going back to your own people’... the people who belong to the city that you are present in.
Brands must start generating the bulk of its revenue from the citizens of the city in which they are present. And this can only happen if brands start offering something different in each market, to cater to the local needs and cultural requirements, which is different from the offerings that they get when they travel abroad. They have to customise their offerings, experiences and services based on the local cultural requirements.
That way, a brand will keep the consumer’s interest alive in his own city and while travelling abroad. Hence, by appealing to ‘their own people’, they can appeal to the tourists even more.
Let me explain:
What is it that a brand can do in India?
Providing a customised offering does not mean that Prada should start doing Indian ethnic wear... Ethnic wear should be left to the experts – the Indian designers. But there are other cultural trends and habits that luxury fashion brands can take advantage of.
For example, Indians traditionally have a mindset whereby they appreciate their own culture better, when the western world starts to appreciate it. This probably has its roots in the century long British rule that they’ve been subjected to, but brands, especially big international fashion brands can take advantage of this and leverage this.
Why can’t a big brand like Gucci or Prada ropes in a big Indian designer to adapt Indian motifs or silhouettes for a certain special range of the brand? Again, it’s not about making ethnic wear, but more about giving an Indian touch to the international product range. The fact that a large international brand has introduced an Indian inspired line would be a big enough motivation for Indians to buy and the association of a big Indian designer is important since it provides credibility to the collection while maintaining the luxury imagery. Also, doing so will make the product twice as desirable.
Another way could be to look into the cultural needs of the client and provide offerings based on that. For example, Indian women above the age of 40yrs, the typical luxury consumers, usually wear sarees (traditional Indian drapes) to social gathering and parties. International luxury brands usually do not have accessories (bags, footwear, etc.) that match these outfits since everything is made to go with western wear or for a total look by the brand. Hence, can luxury fashion brands have a special collection of bags, footwear and accessories that go well with Indian outfits?
Indian weddings are the biggest occasion for jewellery purchase (read article on jewellery ≠ luxury brand name, but much beyond that!) but do not attract sales from international luxury brands like Cartier, Bvlgari or Tiffany. Can they do a special 22 karat gold collection for the Indian weddings?
This strategy will not only motivate the citizens of India to purchase your brand from India, but it also motivates the tourists coming in to buy from your brand, as it’s like taking back a piece of the local culture – but belonging to a luxury brand. This can act as a great motivation for being selected over the competition!
And this strategy must be implemented across markets and across cultures.
Now I’m sure the question looming large in your mind is, ‘what happens to the brand identity?’
Well, most big brands, except LV, Hermes and maybe Dior, have lost their luxury status over the past 10yrs owing to excessive massification and have suffered its repercussions during the economic crisis. Hence, post the crisis all these luxury fashion brands are already planning their revamp strategies. In my opinion, if a brand were to adopt this strategy across markets, this strategy could itself become a part of its new identity.
This time is the best opportunity for brands to try something innovative like this – as innovation is now the key to gaining back the lost luxury status.
Anywhere in the world, all the shops of any luxury brand look the same. The product offering is the same, the look and feel is the same... luxury brands, or should I say ‘luxury fashion brands’ have taken standardization to a different level – Over-standardization! I’m not saying that standardization is bad...in fact, it is good! But over-standardization can have a huge negative impact on the brands’ performance and sales.
Let’s take India for example. Why do luxury fashion brands present in India, not sell in India? It’s not like people don’t buy luxury fashion. But they buy the same thing abroad. Why don’t they buy it from India? Well, why should they?!!?
Is there anything that the brands provide here that they can’t get abroad??!! NO!
Plus they have much higher duties levied on them. So if the same is available in Dubai, New York or Singapore, minus the taxes, then why not buy it from there? A person, who can afford their products, can obviously afford foreign trips and chances are, is planning one at any given point in time. And when one travels, s/he is always in a better mood to shop and tends to spend money more freely than s/he would when at home. Then why should one shop in India?!? Brands give them no reason to do so...! And the same goes for all the countries and cities, the world over. The luxury stores in London have majority of their sales coming from Arabs and people from the Far East... New York has a mixture of other nationalities, Dubai from Russia, India and other Asian countries, Miami from South Americans... Hence, it’s the same story everywhere!!
However, Mumbai and Delhi are not considered as major international shopping destinations... nor has our Indian government done much in order to promote tourism in the big Indian cities. How then are these luxury brands going to survive in India?
According to me, they can only if they are able to sell to Indians!
In fact, I believe that this is something brands must look at doing as a corrective measure in the post-crisis period. Like all luxury experts say – ‘going back to the core business’... I say, also ‘going back to your own people’... the people who belong to the city that you are present in.
Brands must start generating the bulk of its revenue from the citizens of the city in which they are present. And this can only happen if brands start offering something different in each market, to cater to the local needs and cultural requirements, which is different from the offerings that they get when they travel abroad. They have to customise their offerings, experiences and services based on the local cultural requirements.
That way, a brand will keep the consumer’s interest alive in his own city and while travelling abroad. Hence, by appealing to ‘their own people’, they can appeal to the tourists even more.
Let me explain:
What is it that a brand can do in India?
Providing a customised offering does not mean that Prada should start doing Indian ethnic wear... Ethnic wear should be left to the experts – the Indian designers. But there are other cultural trends and habits that luxury fashion brands can take advantage of.
For example, Indians traditionally have a mindset whereby they appreciate their own culture better, when the western world starts to appreciate it. This probably has its roots in the century long British rule that they’ve been subjected to, but brands, especially big international fashion brands can take advantage of this and leverage this.
Why can’t a big brand like Gucci or Prada ropes in a big Indian designer to adapt Indian motifs or silhouettes for a certain special range of the brand? Again, it’s not about making ethnic wear, but more about giving an Indian touch to the international product range. The fact that a large international brand has introduced an Indian inspired line would be a big enough motivation for Indians to buy and the association of a big Indian designer is important since it provides credibility to the collection while maintaining the luxury imagery. Also, doing so will make the product twice as desirable.
Another way could be to look into the cultural needs of the client and provide offerings based on that. For example, Indian women above the age of 40yrs, the typical luxury consumers, usually wear sarees (traditional Indian drapes) to social gathering and parties. International luxury brands usually do not have accessories (bags, footwear, etc.) that match these outfits since everything is made to go with western wear or for a total look by the brand. Hence, can luxury fashion brands have a special collection of bags, footwear and accessories that go well with Indian outfits?
Indian weddings are the biggest occasion for jewellery purchase (read article on jewellery ≠ luxury brand name, but much beyond that!) but do not attract sales from international luxury brands like Cartier, Bvlgari or Tiffany. Can they do a special 22 karat gold collection for the Indian weddings?
This strategy will not only motivate the citizens of India to purchase your brand from India, but it also motivates the tourists coming in to buy from your brand, as it’s like taking back a piece of the local culture – but belonging to a luxury brand. This can act as a great motivation for being selected over the competition!
And this strategy must be implemented across markets and across cultures.
Now I’m sure the question looming large in your mind is, ‘what happens to the brand identity?’
Well, most big brands, except LV, Hermes and maybe Dior, have lost their luxury status over the past 10yrs owing to excessive massification and have suffered its repercussions during the economic crisis. Hence, post the crisis all these luxury fashion brands are already planning their revamp strategies. In my opinion, if a brand were to adopt this strategy across markets, this strategy could itself become a part of its new identity.
This time is the best opportunity for brands to try something innovative like this – as innovation is now the key to gaining back the lost luxury status.
The Indian Complication: Part II
Jewellery ≠ luxury brand name, but much beyond that!
Indian Jewellery has its own character that dates back to the days of inception of jewellery. Jewellery is not only a decoration article or an ‘ornament’ for the Indians... but much beyond that. It’s about the value of the article and not about the brand...because jewellery in Indian culture itself has its show-off value, and does not need to have a brand.
What do I mean by value beyond just jewellery? Since generations, gold in India has been considered as ‘stri-dhan’ i.e. the wealth of the woman of the household. In Indian weddings, which are huge occasions for luxury consumption, maximum amount of money is spent on jewellery to be gifted to the bride by her parents, to make her financially strong before she leaves their house. And gold in India has always been synonymous with ‘purity’ and ‘savings’. Jewellery is the biggest investment that Indians have traditionally made which is also why they only prefer 22 karat gold jewellery. 18 karat gold jewellery is considered more like ‘fake’ or ‘impure’ since its value does not appreciate the same way as of the 22 karat ‘pure’ gold jewellery. Also, unlike diamonds or other precious stones and metals, gold being the only precious element whose value appreciates constantly, also makes it the best choice for investment.
Hence, unlike the western cultures, where jewellery is considered luxury and a brand name attached with it, makes it more luxurious... In India, jewellery is a cultural necessity and financial security... hence, though there is an emotional motivation to buy jewellery, the decision is usually made keeping all the basic functional aspects in mind. i.e. the purity of gold, the quality, the re-sale value, potential returns on the investment, etc...,things which are usually not the considerations while buying jewellery in the western cultures. While the western cultures focus more on design and the ornamental value of jewellery, Indians focus more on the purity and value of the materials used. It probably comes from the fact that India was the source of all precious stones and pearls centuries ago...hence; the mindset is still such that we look for purity and value... Hence, the brand name does not make that much of a difference.
If you look at the Indian jewellery market, the traditional family jewellers still rule... customisation of jewellery, bespoke and tailor made jewellery are almost like a give-in when it comes to the Indian jewellery market. It’s more about trust associated with these family jewellers over generations, rather than the brand name. In fact, India is one market, which does not trust brand names when it comes to jewellery. Why? It’s because unlike the traditional family jewellers, the brands do not give the split between the costs of materials being used and the cost of the designing and making charges. That itself, acts as a huge mental block for most Indians to buy branded jewellery.
So if that’s the case, why would an Indian buy a Tiffany or Cartier jewellery piece, at ten times the price (price of design and making, not the actual elements) of ‘real’ gold for ‘fake’ (18 karat) gold?
Friday, October 9, 2009
The Indian Complication - Part I
We all hear things like India is one of the biggest upcoming markets for luxury brands... and most people, when they say luxury brands; they’re referring to luxury fashion (apparel and accessories) brands. The growth of LV, Prada, Armani and Gucci in China and other Asian markets, has the whole industry optimistic about India too. And with the economic crisis in USA and Europe, the industry is betting a lot more, more than ever, on these two largest growing economies – India and China!
However, India, unlike the USA, has a vast ocean of history and legacy, right from the Vedas and other mythological texts. It is one of the oldest surviving cultures of the world. Hence, most of our habits, mannerisms and beliefs stem from hundreds of thousands of years ago. Obviously they have all gone though several modifications, but the roots still remain intact. Which is why, unlike the USA, which is young, and has borrowed most of its culture from Europe, India, is one of those cultures, which finds it most difficult to borrow from others. Even though religious practitioners talk about westernization and growing influence of western cultures in India, India is one of those unique nations that Indianizes all those western concepts as they enter in. The resistance to foreign concepts is very high at a subconscious level.
One of the biggest barriers that Luxury brands will face in India is to overcome the Indian mindset of ‘saving’ v/s ‘spending’. Though we’ve seen a change in this over the past few years, the current economic crisis has thrown us back into the past in terms of these values. Modern day Indians are suddenly realizing the worth of what their parents always told them, and are going back to saving.
Now I’m not saying that Luxury is a western concept that will find resistance in India. No! In fact luxury is very much an Indian concept, culturally since the age of Gods, and kings and princes. India has been used to opulence and show off forever, and hence, to consume luxury, is in our DNA. However, what kind of luxury is also in our genes.
Opulence in India is mainly displayed through jewellery and property much before clothes and bags. The Indian weddings are the biggest occasion for Luxury consumption in India – more like a platform used to show off how rich you are. Even here, jewellery is what we most spend on! (However, why branded jewellery has not been successful in India is another discussion, which I shall touch upon in my next article)
Rich Indians don’t mind buying diamonds for lakhs, but would definitely think twice before buying a dress for a lakh.
In terms of hierarchical show-off values, the house and jewellery would come first, then a car, then gadgets, then clothes, and then bags, shoes and other accessories. Hmmmn... This takes us back to the Indian mindset of ‘saving’ v/s ‘spending’. Because if we look here, there is only one kind of luxury that Indians most indulge in, and most value – Luxury with an ‘investment value’.
So then what will happen of all these European luxury brands of designer clothes and accessories, hoping to make a fortune in India? They have to do something to overcome this Indian mindset, and as seen in the current figures, simply being present in India is not really helping too much.
Perhaps, to overcome the ‘saving’ mindset of the Indian, luxury brands need to portray themselves as an ‘investment’ rather than an ‘expense’.
Why can’t branded designer wear dress or a bag have an investment value? Why can’t they have a resale value?
Now, ‘resale’ has another complication in India. The concept of ‘Vintage’, unlike the way it is looked at in Europe, is considered as ‘second-hand’ items, by Indians. The concept of used clothes or rented outfits, is traditionally, seen as derogatory in India. Hence, the brands have to handle it carefully, from their own end. For example, the ‘resale’ value could be in the form of brands willing to buy back the products after 30-35yrs or in the form of auctions, organised by the brands themselves, which would give it the feel of ‘true vintage’ and not ‘second-hand’.
Are there other ways that European designer wear brands can overcome this mindset of ‘saving’ v/s ‘spending’? Post your views...
However, India, unlike the USA, has a vast ocean of history and legacy, right from the Vedas and other mythological texts. It is one of the oldest surviving cultures of the world. Hence, most of our habits, mannerisms and beliefs stem from hundreds of thousands of years ago. Obviously they have all gone though several modifications, but the roots still remain intact. Which is why, unlike the USA, which is young, and has borrowed most of its culture from Europe, India, is one of those cultures, which finds it most difficult to borrow from others. Even though religious practitioners talk about westernization and growing influence of western cultures in India, India is one of those unique nations that Indianizes all those western concepts as they enter in. The resistance to foreign concepts is very high at a subconscious level.
One of the biggest barriers that Luxury brands will face in India is to overcome the Indian mindset of ‘saving’ v/s ‘spending’. Though we’ve seen a change in this over the past few years, the current economic crisis has thrown us back into the past in terms of these values. Modern day Indians are suddenly realizing the worth of what their parents always told them, and are going back to saving.
Now I’m not saying that Luxury is a western concept that will find resistance in India. No! In fact luxury is very much an Indian concept, culturally since the age of Gods, and kings and princes. India has been used to opulence and show off forever, and hence, to consume luxury, is in our DNA. However, what kind of luxury is also in our genes.
Opulence in India is mainly displayed through jewellery and property much before clothes and bags. The Indian weddings are the biggest occasion for Luxury consumption in India – more like a platform used to show off how rich you are. Even here, jewellery is what we most spend on! (However, why branded jewellery has not been successful in India is another discussion, which I shall touch upon in my next article)
Rich Indians don’t mind buying diamonds for lakhs, but would definitely think twice before buying a dress for a lakh.
In terms of hierarchical show-off values, the house and jewellery would come first, then a car, then gadgets, then clothes, and then bags, shoes and other accessories. Hmmmn... This takes us back to the Indian mindset of ‘saving’ v/s ‘spending’. Because if we look here, there is only one kind of luxury that Indians most indulge in, and most value – Luxury with an ‘investment value’.
So then what will happen of all these European luxury brands of designer clothes and accessories, hoping to make a fortune in India? They have to do something to overcome this Indian mindset, and as seen in the current figures, simply being present in India is not really helping too much.
Perhaps, to overcome the ‘saving’ mindset of the Indian, luxury brands need to portray themselves as an ‘investment’ rather than an ‘expense’.
Why can’t branded designer wear dress or a bag have an investment value? Why can’t they have a resale value?
Now, ‘resale’ has another complication in India. The concept of ‘Vintage’, unlike the way it is looked at in Europe, is considered as ‘second-hand’ items, by Indians. The concept of used clothes or rented outfits, is traditionally, seen as derogatory in India. Hence, the brands have to handle it carefully, from their own end. For example, the ‘resale’ value could be in the form of brands willing to buy back the products after 30-35yrs or in the form of auctions, organised by the brands themselves, which would give it the feel of ‘true vintage’ and not ‘second-hand’.
Are there other ways that European designer wear brands can overcome this mindset of ‘saving’ v/s ‘spending’? Post your views...
Saturday, September 19, 2009
Luxury = Pain
Yeah... I know it’s a paradox many would be totally confused reading... “How can luxury ever be pain? Luxury is actually maximum comfort!!”... But the co-existence of the yin & the yang cannot be denied, even in luxury.
It’s the fear of death that makes us lust for Amrit... Our love for Lakhmi comes from our fear of pain of Alakhmi...
To understand the true worth and value of luxury, one has to know what pain is... and having undergone pain to acquire it, makes it even more precious.
People go through various troubles in life in order to acquire the luxurious lifestyle that they seek. Office ladies in Korea are known to starve for the whole month and blow up their entire month’s salaries on a LV bag. As per Radha Chadda’s book, Japanese teenagers sleep with rich executives just so that they can afford a LV or a Prada bag.
If in this case, luxury is Lakshmi, then the ache that people have gone through in order to acquire it is the alakhmi.
Looking at the noveu riche, the hardwork, struggle and hardships that one goes through to be where they are, makes the ability to be able to afford those luxuries much sweeter.
Now, one would argue, what about the old rich...who are so accustomed to luxury that it almost has become a routine for them. Well, no wonder that this section of society is now looking at going back to the basics... it’s they who take to meditation – silence is luxury... it’s they who go most on sabbaticals to ‘secret hideouts’ that are unheard of by ‘normal’ people – personal time is luxury... Ask any of these old rich people what they’d most like to have... and they’ll tell you ‘peace of mind’... And well, they do spend thousands of dollars trying to get that!!
So what’s the yin and what’s the yang here??!! Materialistic Luxury itself is the yang and that makes you value the yin – the softer, basic luxuries of life.
Just like in any relationship...where deprivation and a feeling of loss are the biggest factors that make one realize the true value of the relationship, it’s these very factors that change one’s definition of luxury making something more aspirational than something else. For a teenager who’s always lived with parents in a secure environment, living independently may seem like a luxury... but for one living abroad, away from home... luxury is that one friend who reminds him of home! People's relationships with luxury, work on that same basic principle...
Another example of co-existance of yin & yang...
... someone’s gain is somebody else’s loss... A handmade expensive embroidered leather bag, puts through pain not only the artisan sweating it out on making the bag, but also the environment. Honestly, looking at the way the luxury leather industry slaughters animals, puts me to shame. Rare animals like Ostrich and crocodiles are murdered to create one expensive bag for a rich socialite... for whom the skin of the dead animal is luxury. And the respect that the company pays for the pain it caused to the poor animal is by pricing it realllly high! Hermes recently announced that they are planning to now raise crocodiles, in-house, so that the supply of leather continues to come, now that crocodiles have entered the list of endangered species. Talk about paining the environment!
Then there’s the pain that the creator’s go through... If the designers didn’t take the pains, if these so called ‘luxury’ products weren’t ‘hand-made’, if there was any less attention to detailing, if the designers didn’t travel the world, rack their brains and innovate to come up with newer ideas every season, would they have been luxury at all?
Hence, I feel that the entire concept of Luxury is based on the simple human truth – the principle of the yin & yang... But what’s the yin & what’s the yang, is up to everyone’s own personal interpretation!
It’s the fear of death that makes us lust for Amrit... Our love for Lakhmi comes from our fear of pain of Alakhmi...
To understand the true worth and value of luxury, one has to know what pain is... and having undergone pain to acquire it, makes it even more precious.
People go through various troubles in life in order to acquire the luxurious lifestyle that they seek. Office ladies in Korea are known to starve for the whole month and blow up their entire month’s salaries on a LV bag. As per Radha Chadda’s book, Japanese teenagers sleep with rich executives just so that they can afford a LV or a Prada bag.
If in this case, luxury is Lakshmi, then the ache that people have gone through in order to acquire it is the alakhmi.
Looking at the noveu riche, the hardwork, struggle and hardships that one goes through to be where they are, makes the ability to be able to afford those luxuries much sweeter.
Now, one would argue, what about the old rich...who are so accustomed to luxury that it almost has become a routine for them. Well, no wonder that this section of society is now looking at going back to the basics... it’s they who take to meditation – silence is luxury... it’s they who go most on sabbaticals to ‘secret hideouts’ that are unheard of by ‘normal’ people – personal time is luxury... Ask any of these old rich people what they’d most like to have... and they’ll tell you ‘peace of mind’... And well, they do spend thousands of dollars trying to get that!!
So what’s the yin and what’s the yang here??!! Materialistic Luxury itself is the yang and that makes you value the yin – the softer, basic luxuries of life.
Just like in any relationship...where deprivation and a feeling of loss are the biggest factors that make one realize the true value of the relationship, it’s these very factors that change one’s definition of luxury making something more aspirational than something else. For a teenager who’s always lived with parents in a secure environment, living independently may seem like a luxury... but for one living abroad, away from home... luxury is that one friend who reminds him of home! People's relationships with luxury, work on that same basic principle...
Another example of co-existance of yin & yang...
... someone’s gain is somebody else’s loss... A handmade expensive embroidered leather bag, puts through pain not only the artisan sweating it out on making the bag, but also the environment. Honestly, looking at the way the luxury leather industry slaughters animals, puts me to shame. Rare animals like Ostrich and crocodiles are murdered to create one expensive bag for a rich socialite... for whom the skin of the dead animal is luxury. And the respect that the company pays for the pain it caused to the poor animal is by pricing it realllly high! Hermes recently announced that they are planning to now raise crocodiles, in-house, so that the supply of leather continues to come, now that crocodiles have entered the list of endangered species. Talk about paining the environment!
Then there’s the pain that the creator’s go through... If the designers didn’t take the pains, if these so called ‘luxury’ products weren’t ‘hand-made’, if there was any less attention to detailing, if the designers didn’t travel the world, rack their brains and innovate to come up with newer ideas every season, would they have been luxury at all?
Hence, I feel that the entire concept of Luxury is based on the simple human truth – the principle of the yin & yang... But what’s the yin & what’s the yang, is up to everyone’s own personal interpretation!
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