Branded luxury is not new to Elite
India. There was a time in the 1920s, when 20% of Rolls Royce's global sales
were from Elite India. In 1926, the Maharaja of Patiala gave Cartier its
largest commission till date the remodelling of his crown jewels, which
included the 234.69 carat De Beers diamond. The result was the Patiala necklace
weighing 962.25 carats with 2930 diamonds. In 1928, the Maharaja of Jammu and
Kashmir placed 30 orders in six months for trunks from luggage maker Louis
Vuitton. Not to mention that a certain Nizam had procured 50 Harley Davidsons
for his postmen to deliver his messages. (Read: The mechanics of luxury retailing)
In have coined the term “Elite India”
to capture the India that belongs to the Aristocrats and the Blue Bloods. Luxury
was contained exclusively within this elite coterie for generations.
The democratisation process started
happening in the West first, where wealthy businessmen got the taste of luxury
and the rest is history. Luxury was no longer only for the select few, it was
for anyone and everyone who can afford, irrespective of the colour of their
blood.
In India, in the past decade we saw a
rapid rise of the new Maharajas. Industrialists, entrepreneurs, professionals,
and the rural rich started blatantly adoring all things luxurious.
Today, even the luxury of Royalty is
available for a price. How does it matter if you are not born in a Jaipur
palace, today Royal Weddings have become commonplace. Perhaps the opening up of
palaces for hotels is the biggest step towards democratisation of exclusivity
of royalty. You will be treated like a king, if you have the moolah. Life is
just that simple.
Now let us look at the rise of the
so-called “masses”. These new
customers—luxury-rich but asset-poor—are both an opportunity and a threat to
the traditional luxury-goods producers. As consumers, they are more demanding,
more selective, and show less brand loyalty than the “high net worth
individuals” who were the archetypal consumers of the old luxury. They are
willing to pay high prices, but they expect commensurate quality; old luxury
was never so fussed.
And they
want the hottest, trendiest designs, which increasingly have to be marketed in
creative (and expensive) ways—including product placements
on TV sitcoms.
Economist claims that this
democratisation of luxury is eating into the profits of the luxury-goods
manufacturers. To maintain quality and to withstand the tightening of their
margins that it implies, they must have the capacity and resources to change
designs frequently and to get new products into the shops rapidly. That means
money, discipline and clout. Design and creativity are the bedrock of any
luxury brand. But the access to financial resources and thorough execution that
are part of any professional management really come into their own when times
are tough. The vulnerability of small trophy companies becomes more obvious
during a downturn.
Let’s now
consider the more interesting segment of the masses. To explain this first let
me introduce a term: masstige. The word is a portmanteau of the words
mass and prestige and has been described as "prestige for
the masses."
The term
was popularized by Michael Silverstein and Neil Fiske in their
book Trading Up and Harvard Business Review article "Luxury for
the Masses." Masstige products are defined as "premium but
attainable," and there are two key tenets: (1) They are considered
luxury or premium products and 2. They have price points that fill
the gap between mid-market and super premium.
Let’s take
the example of Speedy 30. In Korea, Louis Vuitton’s ‘Speedy 30’ handbag has
been nicknamed the ‘3 second’ bag – because it feels like you see one every 3
seconds. It’s just one of many “entry level” products that have been developed
to deliver value for money on a smaller, yet perhaps equally indulgent, taste
of the brand narrative. So, this is a segment that aims at the entry level
products of the luxury brands. The targets: accessories, belts, scarfs,
wallets, small purses, and so on. They just need to flaunt the label.
Luxury
brands extend downwards with these low-hanging seemingly “affordable” fruits to
capture the masses and to whet their appetite.
So, from
the Maharaja to the Praja, both now flaunt the same labels. That’s
democratisation of luxury. Yes, it has taken decades, but we have made it.
Democratisation,
the great leveller.
Let your
quest for luxury continue.
