tag:blogger.com,1999:blog-372283422024-03-13T22:29:23.478-07:00BrahmastraaDr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.comBlogger69125tag:blogger.com,1999:blog-37228342.post-5495457500202634682020-02-17T00:31:00.003-08:002020-02-17T00:36:39.535-08:00Luxe Inferno<div class="gt gu du ax gv b gw kq gy kr ks kt ku kv kw kx hg gj" data-selectable-paragraph="" id="b4c1" style="background-color: white; box-sizing: inherit; color: rgba(0, 0, 0, 0.84); font-family: medium-content-serif-font, Georgia, Cambria, "Times New Roman", Times, serif; font-size: 21px; letter-spacing: -0.004em; line-height: 1.58; margin-bottom: -0.46em; margin-top: 2em; word-break: break-word;">
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Luxury is all about perceptions! So if it looks expensive, it surely is.</div>
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The luxury industry runs on creating perceptions, one after the other, where each one tries to topple another. Brand custodians all over the world have sleepless nights in creating these perceptions and then creating some more. It is the primary preoccupation of the dream merchants in the luxury industry. It is the perception that justifies the steep premium paid by price-sensitive Indian customers.</div>
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Branding luxe is all about conjuring beautiful and fanciful images in the minds of the customers. And so every luxury brand prefers to conjure some magic — a perception. “Most expensive” as a tag that customers drool over, is certainly not easy to get. The natural corollary to this tag is — why is it so expensive? So it won’t matter if you just keep hiking your price; there has to be a demand created for it. Perception is the key element is creating this demand. So let me take you through three key strategic perception-enablers that luxury brands have been exploiting since the beginning of time and will surely keep exploiting till the end of time.</div>
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<span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Razzle Dazzle:</span> Remember that news of Azzam, the largest yacht in the world, or the diamond and ruby-studded 24-carat gold bodied Rolls Royce Phantom, or the most expensive wine Domaine de la Romanée-Conti or DRC ($551,314), or the most expensive bottled water Beverly Hills 90H20 Luxy Collection Diamond Edition ($100,000 per bottle), or Saluki, the most expensive dog ($5,000). These are the stuff that dreams are made of, and they create the “world’s most expensive” perceptions. This razzle-dazzle is the quickest and easiest means of creating a perception to conjure dreams that make spending millions and billions sound so justified.</div>
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<span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Rarity:</span> This is a very potent key to creating perception that can make people loosen their purse strings. The perception of rarity can be classified into two categories:</div>
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i) Ancient artefacts made by artisans who are no longer alive, paintings or sculptures by greats like Leonardo Da Vinci or Michelangelo, or an object, say a writing instrument or a watch used by a famous personality who is no longer alive (like Napolean Bonaparte or Mahatma Gandhi). Take for instance the priceless death mask of King Tut. These artefacts, paintings or writing instruments or watches were not rare when these well-known figures were alive; they never fetched billions at Sotheby’s. Most of the great artists such as Vincent van Gogh died penniless while now their art is fetching billions of dollars. Blame it on the perception of rarity!</div>
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ii) When a watchman tries to create a complicated mechanism like a tourbillon that will give precision to a mechanical watch, this is rarity. Every such rare watch, such rare mechanical movement is painstakingly crafted by masters over months and may be years. Such pieces are rare. This is same for any artefact or a piece of art. The man hours put into its creation give the perception of rarity to these objects.</div>
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<span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Exclusivity:</span> Every individual longs to be special and not ordinary. They want to receive special treatment, they want to be looked up to and envied. They desire to be emulated, they desire to belong to a certain club of exclusivity where entry in by invitation only. Luxury brands like Rolex and Louis Vuitton rely heavily on this enabler. If you own a Rolex, you will “live for greatness” and be an integral of an exclusive notional club of all owners of Rolex, such as President John F Kennedy or Martin Luther King Junior, or even tennis star Roger Federer. Or Louis Vuitton telling you if you own their trunks or duffle bags, then you will know that “there are journeys that turn into legends”, which a famous ad campaign featuring “Core values” of the LV brand with Sir Sean Connery, Bono, Francis Ford Coppola and Angelina Jolie. This is selling the perception of rising beyond the ordinary, becoming exclusive.</div>
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(Excerpt from my book <span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Luxe Inferno</span>. It is the third book of <span class="gv ky" style="box-sizing: inherit; font-weight: 700;">The Luxe Trilogy</span> after <span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Decoding Luxe</span> and <span class="gv ky" style="box-sizing: inherit; font-weight: 700;">Dark Luxe</span>)</div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-67506364399003852502017-09-18T22:13:00.003-07:002017-09-18T22:13:29.586-07:00Decoding Luxe : Amazing story of a reader (entrepreneur)<div class="separator" style="clear: both; text-align: center;">
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This story is about a day when some random pieces of events came together and unravelled a serendipitous but dazzling reward.</div>
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That day was no different, we (my wife and kids) were excited to hop on the next flight to Goa to celebrate my kids’ birthday.</div>
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We boarded the flight and soon I got into my groove of self reflection while leafing through an in-flight magazine kept there. Suddenly, I saw a feature ad of a book with signature black and golden colour combination, suited enough to convey that it had a luxury element or at least it had the element to draw requisite expensive attention.</div>
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Now, pieces of puzzle started to fall in place. I, while being a connoisseur of luxury, happen to be the owner of an e-commerce platform that I acquired recently that operates in super premium and luxury retail. Anything that had the potential of tantalising my grey cells to know more about Indian luxury space, where I have betted my capital and passion was due to be tended very meticulously.</div>
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Sitting up straight, I delved in the advertisement and quickly realised the scintillating piece of research by Mahul Brahma “Decoding Luxe” was waiting to have my eyes and hands on it.</div>
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An entrepreneur spirit can be overwhelming sometime when it gets on the nerves to have things then and there, its sans time and place, its pure passion, but this time, it was mid-air!</div>
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Thankfully the spirit settled in logical space and searched for the places to acquire the book once I land than lunging to the spare parachutes that are kept in commercial flights (You didn’t know that! Did you?)</div>
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We alighted at Goa airport, I was busy shuffling through the bookstores' phone numbers than my luggage, immediately contacted 4 of them to face the dejection of not having the book on stands. Next call went to my office guys back in Gurgaon, rushed them to the store there, got a book picked and asked them to courier it to me with a priority delivery in next 24 hours.</div>
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I planned my stay at Taj Exotica, a beautiful property, outliving its name, and fairly rooted deep to have that extra effort to be made to savour the fruits of luxury and exclusive experience. Luxury and experience is a give and take relationship, its never one sided, it can’t be, this time, the location of Taj took away my chance of having that book delivered from Gurgaon in the timeframe I was looking to.</div>
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I use an <a data-ft="{"tn":"-U"}" data-lynx-mode="async" href="https://l.facebook.com/l.php?u=http%3A%2F%2Famazon.com%2F&h=ATMG65zMcx0lUqPTPQMN9vaRlJXxtsULzynymKvFtYGtFYpRUNRGKzUTLLaPI5ZyVGp-Z6a2Kbyhackph4TlfyHAKiamvP7vIdqCGkVB_4_d0rdNzzgK5AkZtW5eF6UDInbJMrJGuikRK1gdN_5s1GxouKyiz0QH7bCiDQHbkEGrNvCFfnttX2FZon4M6IZXvF3T68xPSQ4esTOTLHWo2-_tVPGOR4tCPTOLyW0SHJ6tPlWhOk2oye9vwl2b54zMpWmX3WZMNK_EyQe0flPcg2nVKmX9p75g2g" rel="noopener" style="color: #365899; cursor: pointer; font-family: inherit; text-decoration-line: none;" target="_blank">amazon.com</a> account, now leaving no stone unturned, I installed one more app in my wife’s phone for accessing amazon.in. Imagine the excitement when I saw the listing on Amazon! But, remember, give and take? Finding the book on Kindle, setting up my new laptop that I brought along and then finally acquiring the digital print of the book took four hours of entrepreneurial spirit and time.</div>
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Mahul has done an impeccable job in putting lucid perspectives about what, how and why of luxury in India through this piece of art.</div>
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Decoding Luxe connected those dots and solved the puzzles that pave way to my vision and readies me to embark on my entrepreneurial journey ahead with luxury in India!</div>
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<br />Thanks,</div>
<div style="background-color: white; color: #1d2129; display: inline; font-family: Helvetica, Arial, sans-serif; font-size: 14px; margin-top: 6px;">
<a class="profileLink" data-hovercard-prefer-more-content-show="1" data-hovercard="/ajax/hovercard/user.php?id=100002837669016&extragetparams=%7B%22fref%22%3A%22mentions%22%7D" href="https://www.facebook.com/ritesh.srivastava.98?fref=mentions" style="color: #365899; cursor: pointer; font-family: inherit; text-decoration-line: none;">Ritesh Srivastava</a></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-77812133470712940752017-03-11T17:11:00.003-08:002017-03-11T17:13:19.139-08:00Let There Be Colour<div class="MsoNormal" style="-webkit-text-size-adjust: auto; font-family: Calibri, sans-serif; font-size: 33px; margin: 0in 0in 0.0001pt;">
<span style="font-family: "times new roman" , serif; font-size: 12pt;">The media, especially general and electronic media, is always in love with darkness. The dark side of humanity always gets highest readership and TRP. If you ask the editors, they will blatantly tell you, “It is public demand”. Our appetite as readers and viewers are more suited for the dark news. This is a primary reason why I chose to remain a business editor and not move to general news. I could never choose between dark and darker. But even in business, scams have a higher viewership than the success of a young entrepreneur from the bottom of the pyramid. Human interest sunshine stories are rare, hard to come by. It is during these dark times that festivals bring us back to light. Be it the festival of lights or festival of colours, we free our minds from all the darkness and bask in the light of celebrations.<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt;">Amid all the unrest, amid all the troubles, amid all the difference these colours paint our lives in hues of happiness. We again fall in love with light and darkness just disappears. No wonder the texture of news presented also changes during festivities – the gory is pushed away from prime time and page 1.<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt;">So let us not forget the happiness that colours bring to our lives. Let us not forget how we celebrate our lives together with our fellow beings irrespective of the differences in religion, caste, creed, gender or skin colour.</span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt;"> <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt;">So next time when we see a sunshine story, let us be a part of that celebration, let us relish the efforts of a humanitarian in making the society a better place, so that the TRP-driven media is forced to broadcast and publish stories on humanity. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt;">And I believe there is enough hue of humanity still left to be captured by thousands of cameras every day. You just need an open mind because </span><span style="font-family: "times new roman" , serif; font-size: 12pt;">“<a href="http://shinebythree.com/2011/09/colours-are-brighter-when-the-mind-is-open-adriana-alarcon/" style="color: #954f72;"><span style="color: windowtext; text-decoration: none;">Colours Are Brighter When the Mind Is Open</span></a>.”<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , serif; font-size: large;">(Reproduced from mjPost editorial)</span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-71831421980969159202016-08-31T03:29:00.003-07:002016-08-31T03:29:37.363-07:00Luxury: The Great Escape <div style="background: white; line-height: 150%; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;">
<span style="font-family: Garamond, serif; font-size: 14pt; line-height: 150%;">A few years back I had a conversation with
our Union Finance Minister Mr Arun Jaitley on his penchant for luxury writing
instruments. It is a well-guarded secret and very few people know about his
collection. When we started the conversation he told me, “I just dictate and I
am quite fast at that. I don’t want to talk about it (the pen collection), it
is a personal matter.” However, after a little while when he realised that I
want to know about his collection not as a journalist but as a fellow
collector. And I did keep my word and kept it personal. I was then working on a
story on lawyers and how they have a great love for writing instruments.
Another senior politician and lawyer Abhishek Manu Singhvi is also not open to
talk about his passion. “Yes, I do have a collection of writing instruments,”
he had told me. The legal grapevine has it that he also has introduced some of
his friends to fine writing instruments and has been successful in nursing a
similar passion in them to full bloom.</span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">What’s with lawyers and luxury writing
instruments? If you spot them at the courtrooms you may find three sharpened HB
pencils jutting out of their coat pockets. However, if you see them in their
chambers, and sometimes at their homes, you will discover their secret passion.
They are not very eager to talk about it or flaunt it, but if they discover
that there is an appreciation for their penchant for pens, they open up and
chat just the way connoisseurs talk about their passion.<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">Luxury, in its various forms, acts as a
great escape. Luxury is a great partner for solitude. One escapes into luxury. Just
like these lawyers and politicians who only find time to dictate, secretly find
solace in their collection of pens. They told me in their busy schedules they
just don’t get any time for themselves, just themselves. So they secretly take
out an hour, may be an odd one, and spend time with their collection. They
write, they clean and they fill the ink of very interesting colours. “It is
like meditation,” a senior lawyer had told me. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">The story is very similar with watch and
clock collectors. I call them timekeepers. I have watched them closely since my
birth, secretly escaping into this luxury. My ancestral home has a great
collection of antique luxury clocks and pocket watches. This was a collection that
spans three generations. Both my grandfather and his father, when they were alive,
and now my father, spend one hour just winding all the clocks that include the
grandfather’s longcase, chimes and pocketwatches, some date back to the late
1800s, of the biggest brands. This was their private time, a time of solitude,
no one was to enter the clock room for that one hour. They never used to boast
about their collection, it was very personal. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">The case is very similar with connoisseurs
of say cigar, single malt and luxury/vintage cars. These are very personal and
private escapades. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">This escapement has always been a very
dominant, yet the hidden reason behind the love for luxury. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">The only difference is that brand custodians
never looked at this avenue with a magnifying glass. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">This escapade, if properly harnessed is the next
billion-dollar-churner for all luxury brands across the globe. They just need
to recalibrate the positioning. Instead of positioning a brand meant for
flaunting the logo where a customer will spend millions of dollars to it show
off, position the brand as a great escape where consumers will be spending even
a higher amount to buy an escape from their busy and mundane lives where they
do not have any personal time, just for themselves. They will pay top-dollar
for that one hour a week, or that lazy private beach or yacht holiday, away
from everyone, where the brand will be the lone companion to their luxury
solitude. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">Just escaping into luxury and make the
brands richer by billions. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 150%;">Luxury is the great escape. <o:p></o:p></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-31357921606814359242016-06-08T21:34:00.001-07:002016-06-08T21:34:21.748-07:00Festival de Cannes: A heady mix of luxury, aspirations and counterfeits<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 23px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
Palais des Festival, Cannes: I had the opportunity of having a brief conversation with French actor Marion Cotillard (of The Dark Knight Rises, Inception, A Good Year fame) at the Palais des Festival in Cannes, France. She congratulated me on the selection of my debut movie as a lead actor by Cannes jury and then said, “So you also are a luxury writer? Did you find anything interesting here?” I told her that we journalists/writers have a nose for stories, especially in strange places. Marion was wearing a Dior Haute Couture dress, Dior shoes, and Chopard jewellery.</div>
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But this piece is not about the razzle dazzle of the Cannes red carpet stars, it is about the people who get ready in their (fake) designer-labelled tuxedoes and gowns and stand outside the barricade from dawn with a placard held high,desperately seeking a pass for screening in the evening. It is also about the co-existence of the dazzling luxury stores and the extensive use of counterfeits or first copies or fake designer labels by people.</div>
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<img alt="" height="325" src="http://b2bimages.iimg.in/files/retail_files/533769634.jpg" style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" width="488" /></div>
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<em style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: 700 !important; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">(Image source: Getty image)</span></em></div>
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It was my first screening experience at the coveted Festival de Cannes, my first humble “so-called red carpet” moment at Cannes Court Métrageand little did I realise how this is an aspiration for so many – young and old – whoare ready in their best rented attires since dawn, begging for a pass. I spoke to one of them to understand how it works.</div>
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Julia is an independent graphic designer. She had come in a classic-Valentino-red-gown-look alike. The first red carpet screening will be at 6.30 pm (Cannes time). She will wait with baited breath for 12 straight hours and keep begging for a pass. And some lucky ones do get passes this way, every day. She has rented this counterfeit for Euro 100 for five days. The original Valentino would have needed two more zeroes. She will try her luck. She will wait every day till she gets one. She told me there is a huge market for such copies of designer labels that are available for rent, for men as well as for women. To an untrained eye it is as good as the original. “To me, this is a Valentino”, she told me with a pride of ownership.</div>
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The razzle dazzle of luxury brands generate, although unwittingly, a parallel market --a market for counterfeits. The luxury-crazed non-stars want to flaunt as well just like the stars that shine on the red carpet. The dominance of fakes and counterfeits at Cannes amazed me. Every second person, across genders, are flaunting labels, and almost all of them are counterfeits. The most prevalent was in the categories of accessories and leather goods – bags, belts, sunglasses, watches, what have you.</div>
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I saw the biggest of the boutiques of all the coveted luxury brands along the Cannes Riviera, but I also witnessed the biggest counterfeit show that surpassed these genuine labels by living mannequins, the non-stars. These non-stars sported amazing variations of Louis Vuitton monogram and Gucci logos, I am sure Marc Jacobs or Tom Ford would have found it interesting too (they were once creative directors at LV and Gucci, respectively).</div>
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What I admired the most was the way they were flaunting the counterfeits, with such élan and elegance. To them, they were as good as real.</div>
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But at the end a fake is a fake. It is bound to hit the luxury market hard. And this dominance and growth is due to a wrong branding strategy by most of the luxury brand custodians. They give so much attention to branding labels and making them aspirational, that the story of exquisite craftsmanship and design, somehow takes a backseat. A buyer needs to appreciate why the label has become so aspirational and only then they will not opt for a fake Omega, just because they see George Clooney sporting that logo on the red carpet.</div>
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Let your quest for luxury continue.</div>
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Mahul Brahma</div>
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<a href="http://retail.economictimes.indiatimes.com/re-tales/festival-de-cannes-a-heady-mix-of-luxury-aspirations-and-counterfeits/1538">http://retail.economictimes.indiatimes.com/re-tales/festival-de-cannes-a-heady-mix-of-luxury-aspirations-and-counterfeits/1538</a></div>
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Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-8164406645820689672016-04-15T04:19:00.004-07:002016-04-15T04:21:41.368-07:00“PR TRANSFORMS CRISIS INTO AN OPPORTUNITY” : MAHUL BRAHMA<h3 style="background-color: #d4e7ec; clear: both; color: #333332; font-family: 'PT Sans', Helvetica, sans-serif; font-size: 1.875rem; line-height: 1.1; margin-bottom: 1.6rem; margin-top: 3rem;">
<span style="color: #383838; font-family: 'pt serif', georgia, serif; font-size: 19px; font-weight: normal; line-height: 29.45px;">Interview with Priyanka Sharma of Amity</span></h3>
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<span style="font-weight: normal;">Q: How has been your journey so far?</span></h3>
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It has been a very interesting journey so far. I have done my Masters in Economics from University of Calcutta.I have been a senior journalist for a long time and have held senior editorial posts in The ECONOMIC TIMES,CNBC18 and FINANCIAL<span class="skimlinks-unlinked">CHRONICLE.Then</span> I started my Corporate communicator career as media advisor to MR. Sanjiv Goenka, Chairman of RP-SG group, and as a PRO of <span class="skimlinks-unlinked">CESC.Later</span> I joined Ambuja Neotia as head of corporate communications & Branding and media advisor to Mr. Harshvardhan Neotia, Chairman and MD of the group.I am currently head of Corporate Communications and Brhttps://priyankasharma12blog.wordpress.com/anding for a Tata Steel and SAIL joint venture, mjunction.</div>
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<span style="font-weight: normal;">Q:Why do you think corporate requires Public Relations specialists?</span></h3>
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PR specialists plays a vital role in operating the corporate houses in an efficient<span class="skimlinks-unlinked">manner.PR</span> helps in maintaining the positive image of an <span class="skimlinks-unlinked">organization.They</span> often report directly to the CEO of the company and serve as advisors in strategic planning for enhancing the profile of the <span class="skimlinks-unlinked">company.PR</span> assists in boosting the credibility of an organization,since it works through numerous reliable intermediaries.</div>
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<span style="font-weight: normal;">Q:What is the difference between Public Relations and advertising?</span></h3>
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Both advertising and PR are attempts of persuasion and involves using the mass<span class="skimlinks-unlinked">media.While</span> both techniques have similarities, yet they are essentially different.Advertisements involves creating paid announcements to be promoted through different types of media.Whereas the role of a PR is to get free publicity for the company. PR based publicity is more credible because it is viewed as a third-party <span class="skimlinks-unlinked">endorsement.On</span> the other hand,advertising appears less credible because the viewers and consumers knows that it has been bought by a company trying to sell them something.</div>
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<span style="font-weight: normal;">Q:What are the essential qualities of a PR?</span></h3>
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Some of the essential qualities that are expected in a PR professional involves the following-</div>
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<li style="margin-top: 0.3em;">Should have strong communication and influencing skills.</li>
<li style="margin-top: 0.3em;">Possess excellent writing ability to clearly articulate messages.</li>
<li style="margin-top: 0.3em;">Ability to work under pressure and willing to work for long hours.</li>
<li style="margin-top: 0.3em;">Updated with the current affairs</li>
<li style="margin-top: 0.3em;">Should be creative,innovative and possess troubleshooting skills.</li>
<li style="margin-top: 0.3em;">To build and maintain relevant media contacts.</li>
<li style="margin-top: 0.3em;">Must have leadership qualities to effectively work in a team.</li>
<li style="margin-top: 0.3em;">Should be a patient listener.</li>
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<span style="font-weight: normal;">Q.How would you go about finding relevant contacts and sources?</span></h3>
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It is very essential for a PR to maintain contacts and <span class="skimlinks-unlinked">sources.Since</span> I have started my career as a journalist,I have been in contact with large number of people from media <span class="skimlinks-unlinked">industry.That</span> has proved to be advantageous in my profession.Social networking also aids in building contacts with media .</div>
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<span style="font-weight: normal;">Q:What sort of media outlets do you follow on a day-to-day basis?</span></h3>
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Google news is one of the easiest and common medium to keep updated with the current <span class="skimlinks-unlinked">affairs.You</span> get collage and montage of everything that has been published across <span class="skimlinks-unlinked">media.On</span> daily basis, I read THE ECONOMIC TIMES,that has been my old habit and I have also started my career as a journalist in ECONOMIC <span class="skimlinks-unlinked">TIMES.Apart</span>from that,as a corporate communicator and branding head in mjunction ,my matter of concern is mainly upon news related to e-commerce,coal,steel or any kind of changes in policies related to it.</div>
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<span style="font-weight: normal;">Q:What are some of the recent growing trends in the public relations industry?</span></h3>
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As far as public relations industry is concerned, the entire system of the media management or public relationship is based on certain basic fundamentals that remains <span class="skimlinks-unlinked">constant.The</span> recent changes consists of the rise of new media, i.e. social media, that has become very important part in building media relationships.Earlier we use to deal only with print & television journalists and now there are new age writers who are experts in social media.Identifying and reaching out to the influential bloggers forms an important part of building media relations,since they have large number of followers.</div>
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<span style="font-weight: normal;">Q:Who are the major clients of your company?</span></h3>
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The major clients include- TATA. SAIL and coal India.</div>
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<span style="font-weight: normal;">Q:Do you have any strong competitors in the market?</span></h3>
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We don’t have any strong competitors since, mjunction is a unique kind of e-commerce company.</div>
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<span style="font-weight: normal;">Q:What kind of internal PR strategies being planned for the company?</span></h3>
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It is very essential for a corporate communicator to pay heed to internal resources of the organization. The main focus is to enhance company’s relationship with the employees by facilitating good communication among them. An organization’s success at every level depends on internal PR being valued at both macro and micro levels. One of the best tool to keep the employees informed and feel connected is through internal newsletters. At mjunction, we have mjpost , which is a quarterly in-<br />
house newsletters that reaches out to the employees. It features achievements of employees, recognitions and other notable moments. Even the internal stakeholders are kept updated by providing<br />
information regarding the new contracts, award ceremonies and other happenings within mjunction.</div>
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<span style="font-weight: normal;">Q:What are the CSR (Corporate Social Responsibility) initiative taken by the company?</span></h3>
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As part of our CSR initiatives, mjunction promotes a trust called ‘ejunction’. It promotes basic computer literacy and communication skills free of cost to the underprivileged sections of the <span class="skimlinks-unlinked">society.We</span> also organize a conference where these people are given opportunity to inspire the audience.</div>
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<span style="font-weight: normal;">Q:What is PR crisis? Have you ever faced any such crisis in mjunction or in your previous company?</span></h3>
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PR crisis is the circumstance that arises when an organization faces a challenge to its reputation. It may arise because of an unpredictable event that might have a serious impact upon an organization’s image. The company should accept their mistake if they went wrong somewhere because the media as well as the people will be more willing to forgive an honest mistake than a calculated lie.<br />
Earlier when I was with CESC as a PRO a PRO there was a power disruption at NRS hospital. The most interesting dimension of that job was the brand recall only happened in absence of the service. In a hospital when the power is not working, it is extremely critical because there are ventilators that are on power system and people may lose life because of the power failure, there are critical operations that are going on which due to power failure may result in loss of life. So when a power supply was disrupted, People pointed towards CESC and media aimed it’s PRO. As soon as I came to know about the power failure, I immediately interacted with the media to ensure them that we are looking into the matter and trying to resolve the issue as early as possible. It is important to be demonstrative because the media as well as the public will have their own assumptions if no information is given to them by the company during crisis. Once you’ve got the situation under control, use it as an opportunity for making lasting changes. The crisis should be utilized as advantage for strengthening the image of the company.<br />
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<a href="https://priyankasharma12blog.wordpress.com/">https://priyankasharma12blog.wordpress.com/</a></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-63026882996754104632016-03-29T20:45:00.003-07:002016-03-29T20:45:41.211-07:00Managing reputation<div class="MsoNormal">
<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">With the birth of a brand, its reputation is
born. Just like the brand itself, the reputation needs to be nurtured and, more
importantly, protected. Reputation can’t be built on what you are promising to
deliver or achieve, it is only dependent on the promises that you keep, on whether
you walk the talk. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">It takes years, even decades, to build the
reputation of a luxury brand and just moments to ruin it as the Oracle of Omaha
rightly said. So a brand custodian’s primary responsibility along with building
the brand is to protect and build on the reputation. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">With luxury brands, as these are not
personality-dependent, the reputation management is primarily managing the reputation
of the product or service in the eyes of the customers.<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">With the social media becoming all-powerful, this
is a medium that needs to be kept under strict observation. One tweet can
snowball into a reputation disaster in no time, even for the biggest of the
brands. Not very long back, a huge brand, which is primarily into trunks and other
leather/canvas goods, had released an ad where it showed that the trunks were hand-made.
The reality was different and the trunks were machine-made and only a small
part of the stitching process was manual. This truth after it was exposed on
social media had dented the reputation of the brand significantly. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">So, the first lesson is to know that honesty is
the best policy. A brand is basically the sum of its virtues and its reputation
is sum of how much it is living up to those virtues. So if the brand is living
up to its brand promise then it is able to not only protect but also build its
reputation. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">A brand has promises to keep. And customer
satisfaction is the biggest promise. Ensuring that a customer is satisfied with
the promises made by the luxury brand is the biggest responsibility of the
brand custodian, besides building the brand. As every touch point of the brand is
responsible for making the brand, they can also ruin the reputation in no time.
Just one rude behaviour by a boutique assistant can generate an apathy in the
mind of the customers and social media can add momentum, mass and voices to
this grievance. So, it is literally a walk on the tightrope. Every element of
the brand has to ensure that only the best is delivered to the customer as they
are the king. <o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">Luxe is experiential. So the premium that a brand
charges for the luxe is largely dependent on the experience of the customer.
Thus one rude behaviour or even a slight reluctance to serve can break it bad. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">So, reputation management for a luxury brand
comprises three aspects: living up to the brand promises, living up to the brand
virtues and keeping customer at the centre of its universe. <o:p></o:p></span></div>
<br />
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<span lang="EN-GB" style="font-family: "Garamond",serif; font-size: 14.0pt; line-height: 107%;">Let your quest for luxury continue. <o:p></o:p></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-4590728809639248182016-02-29T01:14:00.000-08:002016-02-29T01:14:08.844-08:00The dark side of luxury<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 23px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
Dear readers you would recall that in my earlier posts I had shared the age-old love affair between branded luxury and our great nation of Royalty. One such example is that in the 1920s, 20% of Rolls Royce's global sales was from our great nation. There are similar true legends about Cartier’s Maharaja of Patiala necklace or Maharaja of Kashmir’s customised Louis Vuitton trucks’ collection.</div>
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However, luxury has also been a great tool for one-upmanship and some secret fetishes since ages. This is a very heavily guarded side that all luxury retailers are silent about, however, these were a chunk of their revenues then and so the demand was supplied generously. At that time there used to be dealers, mostly European traders, of these luxury items who primarily used to make their living from the generous commissions of the Maharajas and Zamindars. Thereby hangs a lesson for retailers and brand custodians.</div>
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I will share a few of such instances to give you the feel of the other side of luxury that took place in Bengal in the 19th and early 20th centuries. My friend graphic novelist Sarnath Banerjee has shared a story of a certain Zamindar who accidentally hit a chandelier with his cane, knocking it off the ceiling. It fell with a terrific crash. He was so mesmerised with the tinkling of breaking glass that he broke all the glass within his reach that night. Every piece of glass was imported from Belgium and the Chandelier would have cost a fortune, even then. He had a moment of “enlightenment” and realised the more expensive the glass, the sweeter the sound.</div>
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<br />Then began a long career of importing expensive glass from the biggest international brands from all over the world, aided by a European trader. A few examples were 16th century goblet from Prague, Ming dynasty bone China, Belgian mirrors, French wine glasses and crystal paper weights from Austro-Hungarian empire.</div>
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He made it a private hobby to break these and listen to their “music”. And sometimes he will make a grand spectacle of his passion. Once he laid out four giant-size Belgian mirrors on the street and had his brother’s carriage run over them. Small wonder, his debt rose astronomically and he died a destitude.</div>
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Another story that Sarnath had shared in his book was the competition between two of the Zamindars or Babus on how expensive their open-top phaetons (horse carriages, modern day convertibles) were. So they started adding horses. This competition rose to level when one of them replaced the horses with Zebra. This story is not uncommon when were see the competition among the Richie Rich to showcase their imported two- and four-wheeled “beauties” unabashedly.</div>
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One-upmanship has been a great driver for luxury brands since ages.</div>
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Like modern-day elite car manufacturers, these makers of phaetons were able to brand them as exclusive giving certain features to make them aspirational.</div>
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<br />Be it on the dark side or the brighter side, branding has played a crucial role in luxury retailing. Even at that time why did the Maharaja of Patiala want Cartier to design his necklace and not any other jeweller? Why even did Nizam buy Harley Davidson for his personal postmen and not any other motorcycle? Why even Maharaja of Kashmir asked LV to customise trunks? All these brands were able to first establish an Aspiration Quotient. That would have taken years, but they were patient and gave all the time to the custodian for establishing and maturing the brand. And that is the only reason why these brands have stood the test of time. As luxury or luxe is all about perception, the value of the brand will determine how much premium you are willing to shell out.</div>
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Every luxury brand needs to first focus of the measures that I had created -- Luxe Factor, Luxe Quoties and Aspiration Quotient. The only endeavour should be to increase them. It is only after your brand has attained a certain level in these measures compared to your competition, you will know that your premium will be accepted by the consumers.</div>
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So don’t put the blame on the luxury brands, it is the job of a brand custodian to keep increasing these quotients. It is on the consumer to take it on the dark side. But, that is true even for science.</div>
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Luxury brands should appeal to both the dark and brighter sides.</div>
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<br />Let your quest for luxury continue.</div>
<div>
<br /></div>
<br />
<a href="http://retail.economictimes.indiatimes.com/re-tales/the-dark-side-of-luxury/1230">http://retail.economictimes.indiatimes.com/re-tales/the-dark-side-of-luxury/1230</a>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-40647713668864887522015-12-07T20:37:00.005-08:002015-12-07T20:37:54.346-08:00Luxe Quotient and Luxe Factor<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Luxury is all about luxe, the dazzle. And luxe is all about
perception. What dazzles you may not dazzle me, and vice versa. So, there is no
universal ‘Luxe Quotient’ or ‘Luxe Factor’, as I will like to name them. It all
depends on the sample that you choose to determine the ‘Luxe Quotient’ or ‘Luxe
Factor’ of a luxury brand. However, Luxe Quotient or LQ can effectively determine
the relative scale of luxe between two luxury brands. So if we choose the same
sample for two brands of watches say Rolex and Omega, ‘Luxe Quotient’ will tell
you which is more dazzling to the chosen sample. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">When you want to own a piece of luxury you are well aware
of the premium that you will have to pay for the same. To someone who is price
sensitive this will be a very difficult proposition, justifying the premium. So
the best way to justify the premium charged is through the value for money route.
So let us first look at the routes through which a luxury product can be a
great value for money. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">The premium is charged because by purchasing that product
you will be a part of an elite and exclusive club, you will be part of the
legacy of that brand. So you are also paying to be a part of the history, of
the legendary brand story. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt;">Then comes the
experience. </span><span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">When you are paying a heavy premium
for a luxury purchase you are paying for the experience. You walk into a luxury
boutique, the way you are greeted with a smile and offered a special treatment
from the word go, it is bound to make you feel good and special. The boutique
manager will make you realize that you are almost on the verge of entering an
exclusive and elite club with an amazing history and legacy -- it is just a
purchase away. Then your senses, which are already feeling special, actually
experiences the goods feel more special. For example, you are wearing the
latest Omega watch that James Bond is sporting in the upcoming movie “Spectre”
on your wrist and looking at the mirror, how can you not feel elated? You have
already “bonded” with that timepiece. You just know this is the one. The
boutique manager keeps pampering you, sometimes even with a glass of Champagne.
So finally when you make the payment, it feels so justified and incidentally
also “value for money”. You will revel in that Bond moment. (Read my column:
Why ecommerce in luxury will fail)<o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">However, above all this is the factor that actually draws
you to make the purchase: the Luxe Quotient. It is this quotient that
mesmerizes you, draws you towards the product. This factor determines how much
the brand has been able to dazzle you. The Luxe Factor or simply put the
Razzle-Dazzle factor. The story that is weaved around the brand, the legacy
that is associated with the brand and the experiential gratification that is
attached to the brand all contribute towards creating this luxe and increasing
this “Luxe Quotient”. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">This LQ is determines the extent to which you will be able
to exert yourself to indulge in the luxury brand. The craving, the eagerness,
the longing, the desire, all are captured here. So in order to compare two
luxury brands we need to first take the same sample. And ask the same set of
questions on a scale and determine the degree of longing and dazzle that the
brand has vis-à-vis the other. This LQ will act as a measure of the dazzle that
a brand story has been able to create. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">At the end, luxe is all about perception. How much you will
be dazzled is very personal and so there isn’t any universal degree of LQ or LF
for any particular brand. It depends on the sample chosen, and so while
comparing the sample is kept the same and the LQ determines which brand is more
dazzling, more desired. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">LQ is a unique measure for capturing longing and desire for
a luxury brand. It has the ability to capture the relative dazzle factor of two
or more comparable brands. It can also capture the desirability factor of the
same brand across various customer segments of luxury -- </span><span style="background: white; color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: Arial;">Experientialists,
Connoisseurs, Flaunters and Aesthetes</span><span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">. (Read my column: The Great
Indian Luxury Consumer Decoded) <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">So we need to take samples from these four segments and
gauge their desirability and LQ for the same brand and then arrive at a
weighted average LQ for that particular brand. Similarly, we can have the same
weighted average for luxury brands in the same category and upon comparison the
LQs will reveal which brand has the highest Luxe Factor or LF. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Luxe Quotient, I believe is a great tool that brands across
the globe must use to study the Luxe Factor or dazzle factor of their brand and
then they can rework their brand story accordingly to reach their desired LQ or
LF.</span></div>
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<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;"><a href="http://retail.economictimes.indiatimes.com/re-tales/the-theory-of-relativity-luxe-quotient-and-luxe-factor/1072">http://retail.economictimes.indiatimes.com/re-tales/the-theory-of-relativity-luxe-quotient-and-luxe-factor/1072</a> <o:p></o:p></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-23169908626104482352015-11-30T03:10:00.004-08:002015-11-30T03:10:43.284-08:00Strategic positioning of luxury brands<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 23px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
“The basic approach of positioning is not to create something new and different, but to manipulate what’s already in the mind, to retie the connections that already exist,” said Al Ries and Jack Trout in their book Positioning: The battle for your mind.</div>
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It is all about battling for your mind. The classical definition of positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. So let us understand the phases of this extraordinary make-or-break tool.<br /><br />The quote has a classical approach to brand positioning but primarily is referring to positioning of an existing brand.</div>
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First, let me discuss the strategy for debut positioning of a brand in the luxury space. When you conceive of launching a brand in the luxury space the step is to study the market. The existing players or rather your competition and how they have positioned themselves all this while will give you a fair idea of the positioning that you are looking at.</div>
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<span style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: 700 !important; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">Also read: </span><a href="http://retail.economictimes.indiatimes.com/re-tales/A-guide-to-strategic-luxury-brand-marketing/581" style="color: black; cursor: pointer; text-decoration: none;">A guide to strategic luxury brand marketing</a></div>
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Strategically, if the brand has a strong recall then it is prudent to find a new positioning for your brand. In case the existing brand is new, you may even try to replace its positioning.</div>
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For example, when the incumbent is a brand that is positioning itself as a brand with heritage and legacy, your move will be to position your brand as youthful or rather “cool”. Yes, luxury brand can be positioned as “a cool brand”. The greatest advantage of such a brand positioning that is connected to youth is that it appeals not only to the young people who can afford, but also to the young at heart people who want to be associated or who want to sport a brand that is “cool” and sporty and youthful. Tom Ford is such a brand that has appealed to the youthfulness of the clients. And small wonder, not only youth but also clients from more senior demography even James Bond have been loyal to Tom Ford brand. Other top designers like Michael Kors and Marc Jacobs have also made a niche for themselves by appealing to the youthfulness and vibrancy of their clients with their labels.</div>
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So when you are conceiving of a luxury brand, its positing will make or break it.</div>
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Now let us examine the positioning or rather re-positioning of an existing luxury brand. When I saw Rolls Royce launching a Wraith, I wondered for a while, “how is this sporty looking car fitting into the family of RR beside Phantom and Ghost?” The reason is simple. RR doesn’t want to confine its positioning to a brand of legacy and heritage that is associated with a certain level of power and seniority. A similar example is Louis Vuitton. LV’s brand ambassadors have classically been Bono, Angelina Jolie and Sean Connery. This was essentially “Core Values” campaign about how “a single journey can change your life”. The idea was to create aspiration for the youth and create a pull for both the young and the not-so-young. However, they realized it is time to tap into the market that they are missing out on. So the then creative director Marc Jacobs designed the Damier series of designs to attract youth and to reposition LV brand as youthful.</div>
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Now let us discuss the third and final facet or rather a dilemma that every luxury brand faces. It is a choice between exclusivity and dilution. When a brand is snob and will price itself at such a level that it is crowding out or alienating a greater part of the potential clients, it is gaining exclusivity. It remains an aspiration. For people who can’t afford, some resolve to buying first copies and fakes. However, some other brands make the pricing in such a manner so as to include a large pool of clients who are ready to invest significantly on a first copy. So they are drawing that money and making luxury brands affordable. Welcome to the most tricky client cluster, the Masstige. Handling this segment is the toughest for any brand manager. To what extent can you dilute your brand to gain volume and tap into the wide pool of counterfeits and provide clients with originals that they can afford. It can be a key chain or a coin purse or a wallet or a belt, it is all about flaunting the label, that too original. The pride associated with it is enormous, so the aspiration to buy bigger product only grows and the brands get a new set of wider client pool.</div>
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The only risk being brand dilution. Such a dilution may position the brand away from exclusivity and result in loss of loyal big-ticket clients who want exclusive rights to “luxe”.</div>
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So, be it positioning a new luxury brand or repositioning an existing brand or even handling exclusivity versus dilution debate, the efficacy of the job of a brand custodian lies is in his or her power of knowledge of the brand. The more you know your brand, you will know how best to position it.</div>
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Let your quest for luxury continue.</div>
<br />
<a href="http://retail.economictimes.indiatimes.com/re-tales/strategic-positioning-of-luxury-brands/862">http://retail.economictimes.indiatimes.com/re-tales/strategic-positioning-of-luxury-brands/862</a>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-17869584416040123412015-11-30T03:06:00.002-08:002015-11-30T03:06:51.403-08:00In Conversation with Mahul Brahma: The CEO Magazine<h3 style="background-color: white; border: 0px none; box-sizing: border-box; color: #333333; font-family: Helvetica; font-size: 24px; font-weight: normal; line-height: 1em; list-style: none; margin: 25px 0px 10px; outline: none; padding: 0px; text-align: justify;">
<em style="border: 0px none; box-sizing: border-box; font-size: 18px; line-height: 1em; list-style: none; margin: 0px; outline: none; padding: 0px;">Communications and Branding Expert</em></h3>
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The CEO Team • New Delhi</div>
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<strong style="border: 0px none; box-sizing: border-box; list-style: none; margin: 0px; outline: none; padding: 0px;">Q: From a senior editor you have become an expert on communications and branding. It must be an interesting journey. Please share with our readers.</strong></div>
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It really was a very interesting journey indeed. I started my Corporate Communicator career as Media Advisor to Mr <a href="https://en.wikipedia.org/wiki/Sanjiv_Goenka" style="border: 0px none; box-sizing: border-box; color: #444444; list-style: none; margin: 0px; outline: none; padding: 0px; text-decoration: none; transition: all 0.2s ease-in-out;" target="_blank">Sanjiv Goenka</a>, Chairman of RP-SG Group, and as a PRO of CESC. Being the spokesperson of the power utility company and handling media from the other side of the table is a very challenging task. It was baptism by fire. I later joined Ambuja Neotia as Head of Corporate Communications and Branding and media advisor to Mr<a href="https://en.wikipedia.org/wiki/Harshavardhan_Neotia" style="border: 0px none; box-sizing: border-box; color: #444444; list-style: none; margin: 0px; outline: none; padding: 0px; text-decoration: none; transition: all 0.2s ease-in-out;" target="_blank">Harshavardhan Neotia</a>, Chairman and MD of the group. I am currently Head of Corporate Communications and Branding for a Tata Steel and SAIL joint venture, <a href="https://en.wikipedia.org/wiki/Mjunction" style="border: 0px none; box-sizing: border-box; color: #444444; list-style: none; margin: 0px; outline: none; padding: 0px; text-decoration: none; transition: all 0.2s ease-in-out;" target="_blank">mjunction</a>. I am the brand custodian and responsible for making the mjunction brand most admired. Being a part of Tata group has a great advantage as I get to connect with the entire Tata family including the Chairman Mr Cyrus Mistry. In the book “Intrapreneurs@mjunction” the author has also thanked me in the acknowledgement segment for my contribution in bringing out the book.</div>
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Media has been very kind to frequently seek my opinion and thoughts as an expert in Branding and Communications in their stories. I love sharing my ideas and thoughts on communication and branding with live audience in open forums during my speaking sessions at esteemed institutions like IIM Calcutta and industry bodies like CII and ASSOCHAM. I am also an active member of Public Relations Society of India (PRSI).</div>
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<strong style="border: 0px none; box-sizing: border-box; list-style: none; margin: 0px; outline: none; padding: 0px;">Q: You have been an accomplished journalist. Please share with us the story?</strong></div>
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Journalism was my passion. I have been a journalist for over a decade. I have been lucky to work with some brilliant editors and journalists. I started my career with The Economic Timesin Kolkata in 2002. Then I moved to Mumbai and started working with Reuters and then joined the launch team of DNA in 2005. Soon after, I moved back to The Economic Times and started managing the Op-Ed page while extensively writing on entrepreneurship. I have held Senior Editorial positions in BusinessWorld magazine andCNBC TV18 Group’s Newswire18. In my last stint as a journalist, I was a Senior Editor with the India partner of the New York Times, Financial Chronicle (FC). I have written Editorials, Op-eds and on luxury extensively, I was also editor of a luxury supplement.</div>
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I am currently a columnist with The Economic Times on luxury branding. I write on the world of “luxe” and how it can be strategically marketed, positioned, branded and on its various other unknown facets.</div>
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I have also co-authored a book that was launched by Ms Jaya Bachchan in Kolkata titled “Durga: A woman of Substance”.</div>
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<strong style="border: 0px none; box-sizing: border-box; list-style: none; margin: 0px; outline: none; padding: 0px;">Q: Tell us a bit of your early life and educational background.</strong></div>
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I was born on 15th February, 1981 in Kolkata in a Brahmo family. I graduated in Economics from St Xavier’s College, Calcutta and I am currently an advisor on entrepreneurship to SXC Entrepreneurship Development Cell. I completed my Masters in Economics from University of Calcutta and I was a ranker. I am currently pursuing my PhD in Economics.</div>
<br />
<a href="http://theceo.in/2015/10/in-conversation-with-mahul-brahma-communications-and-branding-expert/%EF%BB%BF">http://theceo.in/2015/10/in-conversation-with-mahul-brahma-communications-and-branding-expert/</a>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-48931990455407891842015-11-30T03:00:00.000-08:002015-11-30T03:00:41.549-08:00Why e-commerce in luxury will fail<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 23px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
In order to fully understand the inherent contradiction in incoherence at the core of the marriage between e-commerce and luxury and why it is destined for a divorce or a failure, let us first look into these two individually.</div>
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E-commerce or e-retail has been a game changer. The valuation game in which these biggies have entered into is a completely new premise for any business. Their valuation is increasing at the cost of making losses. But the million dollar question is how are they sustaining it? They are sustaining it because of the valuation game that will fetch them a buyer with very deep pockets. The buyer will look into the transactional value and the spectrum of offerings, so the focus is that and not profit. It is a great joy run for us consumers as the unrealistic discounts offered at the cost of company money may be funded by a private equity fund in China.</div>
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But as all good things come to an end, the risk of the bubble bursting is imminent. Business models can’t run on losses. Period.</div>
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E-commerce has changed the way we shop. Even a few years back, we couldn’t even fathom buying clothes or shoes without trying them on, but today it has become the norm. It has penetrated our lives like the way mobile phones have. Shopping has never been this convenient and cost-effective.</div>
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<img alt="" src="http://b2bimages.iimg.in/files/retail_files/luxe1.jpg" style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" /><br />(Photo credit: Getty Images)</div>
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The core reason behind the success of e-commerce in India is our love for price-sensitivity. We love discounts, we love value for our money. The entire machinery of e-commerce or e-retail runs on unrealistic deals and discounts.</div>
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And this is where the meeting of hearts between ecommerce and luxury doesn’t happen. So let us understand the premises on which luxury buying is based in India.</div>
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I have oft repeated in my columns that luxury comes from the word “luxe” which means dazzle. Anything, as long it makes you dazzle, is luxury for you and you will pay a premium for it.</div>
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Luxe is a purely experiential phenomenon as it is heavily dependent on how your senses perceive something. If your senses feel dazzled, you are convinced to shell out that premium for a luxury brand.</div>
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Exciting and convincing our senses via a laptop, tab or mobile screen is next to impossible. And that is why the ecommerce companies try the same strategy of heavy discounts that they try for premium products. Unfortunately, this story of crazy discounts opens another can of worms. Welcome to the world of luxury counterfeits that are sold online. (Read my column:<a href="http://retail.economictimes.indiatimes.com/re-tales/The-world-of-luxury-counterfeits-just-a-click-away/184" style="color: black; cursor: pointer; text-decoration: none;" target="_blank"> The world of luxury counterfeits just a click away: http://retail.economictimes.indiatimes.com/re-tales/The-world-of-luxury-counterfeits-just-a-click-away/184</a>).</div>
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So with a seller’s warranty and not a manufacturer’s warranty, you never know you are getting a great deal or a counterfeit.</div>
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My friend very recently sought my advise for buying an Omega through a ecommerce website which was offering a discount of 40 per cent. But Omega was not offering that discount at any of its retail outlets. Although the price was realistic, I advised her against it as you will never know for sure without the manufacturer’s warranty, in this case Omega, whether it is an original or a counterfeit.</div>
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<img alt="" src="http://b2bimages.iimg.in/files/retail_files/168773899.jpg" style="border: 0px; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" /><br />(Photo credit: Getty Images)</div>
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When you are paying a heavy premium for a luxury purchase you are paying for the experience. You walk into a luxury boutique, the way you are greeted with a smile and offered a special treatment from the word go, it is bound to make you feel good and special. The boutique manager will make you realize that you are almost on the verge of entering an exclusive and elite club with an amazing history and legacy -- it is just a purchase away. Then your senses, which are already feeling special, actually experiences the goods feel more special. For example, you are wearing the latest Omega watch that James Bond is sporting in the upcoming movie “Spectre” on your wrist and looking at the mirror, how can you not feel elated? You have already “bonded” with that timepiece. You just know this is the one. The boutique manager keeps pampering you, sometimes even with a glass of Champagne. So finally when you make the payment, it feels so justified and incidentally also “value for money”. You will revel in that Bond moment.</div>
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The entire ambience, the entire experience cannot be created online by any ecommerce company, even via simulation. No matter how much convenience or best deals you are offered, luxury shopping can’t happen without experience. It is not worth the money for the buyer and no amount of discount can replicate that experience.</div>
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So value of money as understood by e-commerce and e-retail players are not the same in case of luxury buying. In the former, it is just the hefty discounts, but in the latter, it is experiential worth of money.</div>
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So, no wonder the marriage between e-commerce and luxury is destined for failure.</div>
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Let your quest for luxury continue.</div>
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<a href="http://retail.economictimes.indiatimes.com/re-tales/why-e-commerce-in-luxury-will-fail/967">http://retail.economictimes.indiatimes.com/re-tales/why-e-commerce-in-luxury-will-fail/967</a></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-75879365207846332932015-08-03T22:16:00.001-07:002015-08-03T22:16:45.124-07:00My interview to the Public Relations Society of India (PRSI) <div class="separator" style="clear: both; text-align: center;">
<a href="http://2.bp.blogspot.com/-aLi2BT0T0Uk/VcBKedx1OlI/AAAAAAAAB5c/SS58NHf6unc/s1600/MB%2Bpic.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="http://2.bp.blogspot.com/-aLi2BT0T0Uk/VcBKedx1OlI/AAAAAAAAB5c/SS58NHf6unc/s320/MB%2Bpic.jpg" width="320" /></a></div>
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Interview with Mr. Mahul Brahma, Corporate communications
and Branding Head, mjunction. Some of the excerpts of the interview:</div>
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<b>1. How do you manage the heterogeneous
consumers?<o:p></o:p></b></div>
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For a PR professional, the customer is media. For a branding
professional, the customer is the internal business heads and the
Chairman/MD/CEO. For a corporate communicator, the customer consists of all the
above three types and also employees (internal PR). <o:p></o:p></div>
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I was with CESC as a PRO and the most interesting facet of
that job was the brand recall only happened in absence of the service. So when
it when the power supply was disrupted people remembered CESC and media
remembered its PRO. So with CESC it was baptism by fire. Once you learn to deal
with the frantic calls from the media, you become an expert in firefighting and
in dealing with crisis. <o:p></o:p></div>
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At Ambuja Neotia group, I was heading brand and corporate
communications. It is a BtoC business, and the focus was hospitality. I was
fortunate to be part of the team that launched a new restaurant and learn how
best to communicate to the consumers and popularize it with clients using media
and publicity. I learnt how a new brand (in this case a restaurant) is created
and popularized. Another challenge was reputation management of Mr
Harshavardhan Neotia, Chairman and MD, and my former boss. <o:p></o:p></div>
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At mjunction, a JV between Tata Steel and SAIL, I am heading
corporate communications and branding. My biggest challenge here was that it is
a B to B business and there is no product that I can showcase. We are
e-auctioning company, primarily steel and coal. But this was my opportunity to
learn something new, a new challenge. <o:p></o:p></div>
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So, heterogeneous customers can only be managed if you take
keen interest in understanding their needs and customize your work accordingly.
<o:p></o:p></div>
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<b>2. How do you manage the inhouse
employees(internal PR)?<o:p></o:p></b></div>
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Managing internal PR is always a challenge. The key is to
keep the employees engaged. Corporate newsletters are a great tool. At
mjunction, we have mjPost that reaches out to not only the current employees
but also to former junctionites. The newsletter should encourage participation
from employees and try to capture their creative side that usually stays in the
background. The more creatively and interestingly it is done the better is the
engagement. <o:p></o:p></div>
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<br /></div>
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Another tool that can be used is mailers. As the newsletters
aren’t the best tools to communicate news that have a short shelf life, these mailers
keep employees abreast with the developments of the organization and its chief.
<o:p></o:p></div>
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<b>3. What are the CSR initiatives taken and
why? <o:p></o:p></b></div>
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<span style="font-family: Symbol;">· </span> <span style="font-family: Symbol;"> </span> <span style="font-family: Symbol;"> </span> <span style="font-family: Symbol;"> </span> <b><span style="font-family: "Garamond",serif;">ejunction: </span></b><span style="font-family: "Garamond",serif;">A trust promoted through mjunction,
ejunction is dedicated to providing basic computer and communication skills
free of cost to members of the underprivileged sections of society and creating
employability opportunities for them. In FY14, ejunction trained 938 students
and created 391 employment opportunities.</span><o:p></o:p></div>
<span lang="EN-IN" style="font-family: Symbol;">· </span><span lang="EN-IN"> </span><span lang="EN-IN" style="font-family: Symbol;"> </span><span lang="EN-IN"> </span><span lang="EN-IN" style="font-family: Symbol;"> </span><span lang="EN-IN"> </span><span lang="EN-IN" style="font-family: Symbol;"> </span><span lang="EN-IN"> </span><b><span lang="EN-IN" style="font-family: "Garamond",serif;">MET:
</span></b><span lang="EN-IN" style="font-family: "Garamond",serif;">The Movement
for Efficiency & Transparency, or MET in short, is a brainchild of the
company’s founder CEO & MD and MET is an initiative to provide a platform
to people who have transcended barriers of inefficiency and opaqueness to share
their success stories and ideas for the future with a select audience. Eight
MET events have been held so far and has had partners such as Tata Steel, SAIL
and 5th Pillar, a Chennai-based anti-corruption organisation.</span><span lang="EN-IN"><o:p></o:p></span><br />
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<b>4. Who is the nearest competitor?
Competition strategy if any?<o:p></o:p></b></div>
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mjunction
is in a unique business and we don’t have strong competition. However, in
Ambuja Neotia, especially in hospitality, it was a big challenge. The strategy
is always to identify the unique selling proposition and showcase it in an
innovative and engaging manner so that you stand out. <o:p></o:p></div>
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<b>5. How is Ad and PR necessary in today's
market?<o:p></o:p></b></div>
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In
today’s market it is all about getting the mindspace of your customers. There
are so many engagements of an average individual that one really needs to fight
for a piece of his/her mindspace. Advertisements and PR help achieve that
objective effectively. These two means are critical in today’s market and no
corporation can even think of surviving without these two critical,
life-savingsupports. <o:p></o:p></div>
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However,
we must also understand that advertisement and PR are intrinsically different.
And thus one needs to understand the effectiveness of each format to use them
intelligently so that the return on investment (RoI) is maximized. <o:p></o:p></div>
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Advertisements
have cost implications, whether outdoor or indoor. Be it print or electronic or
a hoarding, it is a costly affair. So that has to be judiciously decided so as
to maximize RoI. However, there are areas where you can’t help but spend as
your business will not grow otherwise and competition will crush you just based
on an expensive campaign that you avoided as it was not in your budget. <o:p></o:p></div>
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As
far as PR is concerned, editorial coverage is a very powerful tool for
establishing the credibility of an organization. But managing the media is a
very challenging task. They will always act as the devil’s advocate and you
have to convince the editors the worth of the news that you are sharing.
However, every PR person needs to have/develop news judgement, at least, a sense
of what makes news. Journalists have an edge in this aspect when they move over
to the other side. But it is critical that the journalists take you seriously
and trust that you will not give them wrong information. Once that is
established, a PR professional has done the job well. At times, when ads lose
impact, a great editorial coverage can work wonders. <o:p></o:p></div>
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<b>6. Advise to young professionals:</b><o:p></o:p></div>
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For
corporate communicators, my word of advise is that continuously keep honing
your language skills. Read a lot and try to avoid jargons in your
communications. Make the language as fluid as you can be. And always be focused
in your communications. <o:p></o:p></div>
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I
have a column with The Economic Times on luxury branding and I still make time
to write for it, no matter how busy I am. <o:p></o:p></div>
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<a href="http://retail.economictimes.indiatimes.com/re-tales/The-theory-of-relativity/253">http://retail.economictimes.indiatimes.com/re-tales/The-theory-of-relativity/253</a><o:p></o:p></div>
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Young
PR professionals: Be very honest in your dealings, especially with the
journalists and your own organization. Engage with journalists and try to get a
sense of what makes news. Never try to sell non-news to them just because your
boss has asked you to do so. <o:p></o:p></div>
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For
young branding professionals, my advise is that any branding decision needs to
have a definite RoI, it is never ambiguous, although you may like to think it
that way. <o:p></o:p></div>
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I
wish all the very best for your future endeavours and always try to be creative
and innovative. <o:p></o:p></div>
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<br /></div>
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<br /></div>
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<br /></div>
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<br /></div>
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<b>Interviewer Name: Mohit
Chomal Corp. Name: Mr. Mahul Brahma Date of Interview: 25<sup>th</sup>
july 2014 <o:p></o:p></b></div>
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<b>Celeb Address: </b>mjunction services limited<br />
Godrej Waterside, 3rd Floor, Tower 1, Plot V<br />
Block DP, Sector V, Salt Lake,<br />
Kolkata - 700091. <b> Celeb
Mobile No:</b><span style="background: white; color: #222222; font-family: "Garamond",serif; font-size: 10.5pt; line-height: 115%;"> </span>+91 8420146592<b><o:p></o:p></b></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-26589857565502738212015-06-27T23:40:00.004-07:002015-06-27T23:40:49.060-07:00Of counterfeits and the democratization of luxury<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 26px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
When my friend Raghavendra flaunted to me his brand new all gold Rolex I was taken aback for a minute. He comes from a modest background and the watch costs over 20 lakhs INR. This particular rose gold Day Date model is something I have always aspired to buy. Some day, I had always consoled myself. It has exquisite craftsmanship, the right mix of luxe and panache, and the patented hand-crafted Rolex movement. I took the watch very carefully and started checking out the dial, old habit. I realized the unique identification number that is etched in every Rolex, was missing. I knew at once it was a fake, rather a first copy. The quality of steel and its heaviness was as good as real. The gold was plated and not solid. The movements are re-created by some craftsman in a remote Chinese or South East Asian town and not in Switzerland. But a great counterfeit, I must say as it is usually quite difficult to escape my eyes at first glance.</div>
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So I asked Raghavendra how much did you shell out? He said 10,000 INR. I told him great. He had purchased it from a website selling luxury brands at a crazy discount, like many others which are doing a roaring business across the globe selling counterfeits. I reluctantly told him that it is a first copy, but a good counterfeit. He said, “Of course I know that. I just wanted you to see how good it was. See, I don’t know whether I will ever be able to buy the real one. But this I can experience today. I am happy. Unlike people like you who are experts, how can anyone say that it is a fake? It is automatic, looks the same, I am happy that I won’t have to wait a lifetime.”</div>
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His parting words made me think. Is it worth the wait for people with limited means to get something they aspire for but can’t afford? Are counterfeits helping democratize luxury?</div>
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Snob value is an integral part of luxury brands. In the core they are supposed to be exclusive and not available for all. Democratization will kill a luxury brand. This exclusivity is why a premium is charged by these luxury brands. This exclusivity is usually a legacy that you are made a part of. The dazzle can be replicated by a counterfeit and so is the label, but you can’t replicate the exclusivity that the original can offer. The gold plated watch may shine more than the solid gold one, but this can’t give you the legacy of a Rolex or a Patek or a Breguet.</div>
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I think the luxury brands in order to be more inclusive and to tap the Great Indian Middle Class have made a mistake of focusing on masstige. The biggest folly with masstige is that the focus is only on the label, the monogram. And that is why even a key ring with just LV will be very coveted as you think you have become a part of that legacy.</div>
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A world-class brand attains a certain stature not only for marketing or branding. We need to delve deeper and understand what makes it so sought after in the first place -- it is the exquisite craftsmanship, the intense labour hours given by masters, the elegant design, the patented movements, the finishing and the hand crafted creations. These can’t be replicated. These can’t be cheap, these must have a premium, these must be exclusive, just like all good things in life.</div>
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Luxury is not skin deep.</div>
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So luxury brands need to move beyond just focusing on the labels and popularize how these labels have become what they are. It is the responsibility of these luxury brands to make people aware of the difference between a Rolex-patented movement and the one my friend is flaunting. It is the responsibility of these brands to share with its clients, both current and potential, why they are exclusive and how futile it is to buy a fake, a counterfeit or a first copy.<br />Although it might look that the world of counterfeits are democratizing luxury but in reality it is just taking you further away from the real world of elegance, luxe and exclusivity. Luxury brands surely have a role cut out for them in achieving this desired outcome.</div>
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Let your quest for luxury continue.</div>
<div>
<a href="http://retail.economictimes.indiatimes.com/re-tales/Of-counterfeits-and-the-democratization-of-luxury/722">http://retail.economictimes.indiatimes.com/re-tales/Of-counterfeits-and-the-democratization-of-luxury/722</a></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-32212374511261233692015-06-01T23:00:00.001-07:002015-06-01T23:00:11.718-07:00A guide to strategic luxury brand marketing<div style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 17px; font-stretch: inherit; line-height: 26px; margin-bottom: 10px; padding: 0px; vertical-align: baseline;">
horse, a horse! My kingdom for a horse!</div>
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Well, that’s luxury marketing opportunity the bard William Shakespeare has spelt out for you. A game of pureplay demand of luxe-addiction and constrained supply in the name of limited-edition or handcrafted-edition.</div>
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The first step is in understanding the very basic difference between marketing of luxury brands vis-?-vis non-luxury.</div>
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A marketer needs to understand that straightforward cost-effectiveness card is off the table. You have to sell the dazzle card, not the value-for-money card (not upfront, it will come in a very different format much later in the play).</div>
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So luxe is your USP.</div>
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The second step is to sell the story – a tale of aspiration, a tale that you will want the buyer to crave to be a part of. This story will justify to the buyer the premium you are charging. This needs to be a story of legacy, of historical stature and of aspiration.</div>
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The third step is n convincing the client that this is the only chance, the only window of opportunity to become part of that legacy. The object, be it a watch (say a Rolex) or a pen (Montblanc) or a trunk (Louis Vuitton) or a car (Rolls Royce), will make the client a part of that proud history. So the strategy is that even after listening to the history the client still is not convinced, convince him/her that he/she is making the biggest mistake of his life as this is an opportunity of a lifetime.</div>
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The key(words) that usually opens the doors of the minds of the clients are – handcrafted, limited edition, special edition, exclusive, hand-picked, exquisite craftsmanship in some remote hamlet, say in Venice.</div>
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The mindset of a typical Indian buyer seldom goes beyond “value-for-money”. So at some level you have to address that. But never in the first step, but only after the story is sold. The premium charged is complete value for money because the legacy is priceless. The moment the client is sold on the value proposition the deal is sealed.</div>
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Now let us look into the steps that need to be taken for strategic marketing of news brands which want to make a mark in the luxury space.</div>
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First, define the brand aspiration, the strategic objective. For example, 10 years down the line you want to become the most-sought after watch brand among men in the age-group of 30-45 years at a certain price-point in China. So the objective needs to be very specific and spelt out – period, geography, target audience, price point, etc.</div>
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Second, weave a story, a story of legacy, of exquisite craftsmanship, a story that willjustify your raison d’erte in the luxury brand space.</div>
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The third step is to understand and take stock of the initial conditions: What is the current positioning, which is the current target group, what is the current price point, which is the geography currently present in, and what’s the position vis-a-vis competition in minutest details.</div>
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This will give you clarity of the distance you have to traverse to reach your strategic objective.</div>
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The fourth step is to define is every minutest details the final conditions. This will flesh out the brand aspiration into specific targets. This will capture all the conditions that will enable attaining the strategic objective. Say, elimination of current market leader in that geography, dominating a certain geography, top of the mind recall among men in a specific age bracket, etc. This will help flesh out the final results that you want to achieve for reaching the SO.</div>
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The fifth and most crucial step is to formulate action points which will help map the starting point to the end points. These action points will show how to bridge the gap between the initial “have nots” and the final “haves”. This mapping will tell you how over the years, one year at a time, you will slowly reach your objective of brand aspiration. Study the model of competition and understand the modalities as to how marketing needs to be done differently, what is the selling point, what is the story, etc.</div>
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These action points are basically strategic marketing activities put together in the marketing plan.</div>
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Always remember, the story is priceless.</div>
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Let your quest for luxury continue.</div>
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<a href="http://retail.economictimes.indiatimes.com/re-tales/A-guide-to-strategic-luxury-brand-marketing/581">http://retail.economictimes.indiatimes.com/re-tales/A-guide-to-strategic-luxury-brand-marketing/581</a></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-78899755320267828362015-02-25T23:14:00.003-08:002015-02-26T00:39:12.430-08:00Seven Ages of a Luxury BrandAll the world's a stage,<br />
<br />
And all the men and women merely players.<br />
<br />
They have their exits and their entrances,<br />
<br />
And one man in his time plays many parts,<br />
<br />
His acts being seven ages.<br />
<br />
Just
like the Seven Ages of Man described by William Shakespeare, a Luxury
Brand also has Seven Ages. The column aims to capture these stages of a
Luxury Brand – from conception till death and rebirth. Just like a man, a
brand also goes through the motions of life and has its share of ups
and downs and it also evolves with time and maturity. <br />
<br />
The infant<br />
<br />
At first the infant,<br />
<br />
Mewling and puking in the nurse's arms.<br />
<br />
Conception:<br />
<br />
This
is a time when a luxury brand is conceived and the creator decides on
the raison d'être. Sometimes a luxury brand is conceived by accident and
some other times it is by planning.<br />
<br />
This is a critical juncture
for any creator as this is the story that justifies the birth of the
brand. Be it creating a new luxury label from scratch or making the
brand an offshoot of another established brand.<br />
<br />
When Gucci
acquired the house of Yves Saint Laurent (YSL), Tom Ford was named
creative director of that label as well, displacing Saint Laurent
himself as designer of the company's ready-to-wear line. Saint Laurent
did not hide his displeasure with this development, openly and regularly
criticizing Ford's collections. In April 2004, Ford parted ways with
the Gucci group to launch his own label due to creative differences. Tom
Ford brand now is a force to reckon with. <br />
<br />
Birth<br />
<br />
Determining
the Brand Gender: Brands inherently have a gender. Say a Rolex or a
Patek Philippe is a masculine brands whereas Chanel or Dior are
feminine. It’s tagline says: “You never actually own a Patek Philippe.
You merely take care of it for the next generation”, where it is always a
father taking care of his son.<br />
<br />
So based on the gender of the brand the entire life journey and positioning is planned.<br />
<br />
Whether
incubation is needed: If the brand is launched prematurely, there is a
need for immediate incubation, just like with babies. The incubation
saves the brand and makes it stronger to face the world. The parents
realise that the brand is too fragile to withstand competition and will
die prematurely. So this forces the parents to strengthen the brand and
make it fit for survival.<br />
<br />
The whining schoolboy<br />
<br />
Then, the whining school-boy with his satchel<br />
<br />
And shining morning face, creeping like a snail<br />
<br />
Unwillingly to school.<br />
<br />
The
early years: This is the time of doubts, the irritation of failure, the
sweetness of initial success. The exposure to criticism. This is the
time when you realise the strengths and weaknesses, the areas that need
nourishment for the brand to grow.<br />
<br />
The teen/adolescent/puberty:
You start realising the changes (hormonal) that a brand is undergoing.
This is a critical time when you need to be patient as even a well
thought through plan may go haywire and this is when the brand starts
developing character.<br />
<br />
The lover<br />
<br />
And then the lover,<br />
<br />
Sighing like furnace, with a woeful ballad<br />
<br />
Made to his mistress' eyebrow.<br />
<br />
A
confident young luxury brand that falls hopelessly in love with itself.
It just sees how beautiful it is and keeps admiring the story of its
birth and growth. This is a time when “Brand Ego” takes birth.<br />
<br />
A soldier<br />
<br />
Then, a soldier,<br />
<br />
Full of strange oaths, and bearded like the pard,<br />
<br />
Jealous in honour, sudden, and quick in quarrel,<br />
<br />
Seeking the bubble reputation<br />
<br />
Even in the cannon's mouth.<br />
<br />
The
dominance of Brand Ego: This is dedicated to the facets of Brand Ego.
“A car that runs of reputation” is one such example. Ego creates brands,
makes them reach heights that they could have never reached with
humility.<br />
<br />
<b><i>For more, Read:</i></b><a href="http://retail.economictimes.indiatimes.com/re-tales/Luxury-buying-is-driven-by-a-three-letter-word-EGO/336" style="display: inline !important; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit;" target="_blank" title="">Luxury buying is driven by a three-letter word: EGO</a><br />
<br />
The justice<br />
<br />
And then, the justice,<br />
<br />
In fair round belly, with a good capon lined,<br />
<br />
With eyes severe, and beard of formal cut,<br />
<br />
Full of wise saws, and modern instances,<br />
<br />
And so he plays his part.<br />
<br />
The
maturing brand: Ego grows and so does wisdom. The luxury brand now has
more clarity of its clients and its target group and even about its
strengths and weaknesses. But ego still plays a significant role.<br />
<br />
Into lean and slippered pantaloon<br />
<br />
The sixth age shifts<br />
<br />
Into the lean and slippered pantaloon,<br />
<br />
With spectacles on nose and pouch on side,<br />
<br />
His youthful hose, well saved, a world too wide<br />
<br />
For his shrunk shank, and his big manly voice,<br />
<br />
Turning again toward childish treble, pipes<br />
<br />
And whistles in his sound.<br />
<br />
This
is a time when the brand starts to show signs of fading. This is when
there is the conception of a revamp. The idea that the brand is nearing
death looms large. So the custodian or the parent looks at ways to save
the brand or rebuild the brand or even the birth of a new brand.<br />
<br />
This
is a time when the brand starts to reinvent itself. The brand
identifies that its target has shifted and if it is not able to evolve
it will perish. This is a time when very traditional and conservative
brands such as a Rolls Royce or a Breguet or a Mont Blanc recognises the
immense potential of the youth and remodels its brand to come up with
sporty and more youthful versions of their products.<br />
<br />
Second childishness<br />
<br />
Last scene of all,<br />
<br />
That ends this strange eventful history,<br />
<br />
Is second childishness and mere oblivion,<br />
<br />
Sans teeth, sans eyes, sans taste, sans everything.<br />
<br />
This is the stage of the death of the old brand and the birth of a new brand. The second life of the brand.<br />
<br />
“I'm like a phoenix. I rise from the ashes.”<br />
<br />
Let your quest for luxury continue.<br />
<br />
<br />
<br />
<a href="http://retail.economictimes.indiatimes.com/re-tales/Seven-Ages-of-a-Luxury-Brand/452">http://retail.economictimes.indiatimes.com/re-tales/Seven-Ages-of-a-Luxury-Brand/452</a><br />
<br />Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-75777116138582576062015-01-14T03:12:00.000-08:002015-01-14T03:12:10.136-08:00A brand’s guide to luxury retailing in India<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">When a luxury retailer wants to do business in India the brand has to understand that this is not China and thus cannot be clustered as emerging markets for these brands. The two markets are intrinsically different.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">We are the old markets for luxury, unlike China. 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.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">However, things have changed, the texture of the market has changed, and more so, luxury has become democratized. There has been a rise of the Great Middle Class and they have been the primary drivers. In India, it is still a play on volume and not on ticket size. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">A.Challenges in luxury retailing and how to fight them:</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1.The only big challenge so far to rapid expansion of luxury retail in India is the availability of the right real estate spaces to house international luxury brands. Apart from the few malls in the major metros such as DLF Emporio in New Delhi, The Palladium in Mumbai and The UB City in Bangalore and the recent opening of Quest in Kolkata, there have not been any other developments.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">There is a need for many more such retail options in other cities too as there is a far wider target audience residing in smaller towns and cities which have the propensity to buy luxury goods. The reason China is 15 years ahead of us in terms of expansion of luxury stores is purely because they have developed their infrastructure that supports this expansion.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2.Luxury retailing cannot be confined to five star hotels as it is now widening the base to tap into a bigger pool in this country.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">3.Besides real estate, there is another issue and it is deeper one: the perception of luxury. What people expect from luxury in India is very different from abroad. In the West, a bespoke suit is luxury, however, it isn’t here and customers ask, So, what else are you offering? In India luxury retailing is very service-oriented, in the West it is product-oriented.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">However, customers are also ready to forgo service if they are offered a discount instead. India is still a price-sensitive market.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">4.Adaptation is the mantra: Every luxury retailer worth their salt is up for local adaptation to make their slice in the luxury pie bigger. It gives so much comfort to walk into a Llardo boutique and see Rama Sita, Ganesha or Lakshmi created so beautifully with porcelain or to see Hermes coming up with a Saree.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">B.Understanding the minds of luxury consumers</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">1.The Experientialists</b><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">: This genre typically values new and exciting experiences more than buying products or brands. They spend on the experiences.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">2.The Connoisseurs: </b><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">This genre is passionate in certain areas of interest and makes it a point to be well informed and knowledgeable about it. These categories could be art, scotch, wine, watches, writing instruments, cigars, horses, and the likes.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">3.The Flaunters</b><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">: They are the force that drives luxury in India. They tend to value brand name over all other factors. Purchase of a brand is a signal of their status in their society and so visibility of the brand name is important. It is also important for the brand to be aspirational, otherwise, what's the big deal? Badge seekers at the stage where the brand name itself is the biggest status indicator is seen mostly with the newly rich or new money class, especially among their young members.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">4.The Aesthetes:</b><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;"> To this genre, the brand is much less important than the design. Aesthetes are luxury consumers purely because they have arrived at a state of income due to which they can indulge in their love for design among luxury brands or products.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">They will shell out a bomb because the object of desire is hand stitched and not because of the label. They pride themselves for having an eye that picks out the unique and bold in design.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Built in rationality and conservatism still dominates our minds so one toe may be dipped in luxury, the other may be in a pool of value for money. Yes, it happens only in India.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">C.Everything is relative</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1.In luxury branding one size fits all just doesn’t work. It is a space for bespoke, for customization, for making every customer feel special and justify the brand premium in pricing.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2.The greatest challenge that a luxury brand faces is in mixing the right portion of snob-value. It can’t be so much that you alienate others but it can’t be so less that the clients don’t feel the exclusivity. The magic potion lies in the right portion. It is both the presence and the absence of snob quotient, both co-existing, side by side.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">3.You need to have the low-hanging accessories like sun glasses or perfumes or key chains or coin purses or scarves or what have you. They will not only lure a genre of clients who are heavy spenders in premium brand space and are yet to turn big spenders in luxury space as they are not sure the return on investment or RoI as we call it in the corporate parlance. For them, these low-hanging fruits are only value-for-label. So they just pay for the logo and are happy as they spend it within their budget and not frivolous but smart. They think of these spends as it is a deal man to own an LV for such a price, the product may be a key chain or a coin purse but who cares. Logo rules!</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">4.With time, a certain segment of this class realizes the efficacy of the entire experience of luxury shopping, it is just not the product, it is the experience that you pay the premium for. Again to some it is worth the buck, to others it isn’t.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">D.Brand Ego: The great driving force (read strategy)</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1.It is all about being special or exclusive, to be someone who is not ordinary. Of being able to dazzle or “luxe”. Of being able to stand out in the crowd. This razzle-dazzle industry thrives on ego.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2.To idea that a marketer sells is that this luxury brand is exclusive and it will make you exclusive as well, you will belong to an elite club that you will be able to flaunt such as a Lamborghini Club. “Money can’t buy happiness. But, somehow, it is more comfortable to cry in a Lamborghini than on a bicycle”, Lamborghini Gallardo slogan quite captures the ethos.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">3.The arrogance that a brand exudes, mostly using prohibitive pricing to crowd out clients, will make it aspirational. So the users will get an elevated feeling that he is part of an exclusive club. When Rolex says “Live for greatness” it is not talking about the product, or the patented perpetual movement, or the oyster casing, or the brilliant design, it is a life that the watch brand is giving you. It is making you part of a legacy of great people, of JFK or of Martin Luther King Jr stature. Rolex has always been a very masculine brand. The male ego that Rolex has been able to develop and nurture over decades has proved instrumental for the company’s success and it is still revelling in that glory. So Rolex is selling a legacy, a life of greatness, a masculine ego that craves for being distinguished.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">E.The Great Indian Middle Class: The strongest driver</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">All the major luxury brands owe their existence this one class of buyers. The secret behind the survival of high-brow luxury brands is the play in volumes: </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Shopping malls in order to lure the middle class towards luxury and to give them its taste are mixing luxury, super premium and premium in the same shopping mall. The Palladium in Mumbai or The Quest in Kolkata has a mix of all three segments: all under the same roof. You can’t afford to restrict luxury retailing for five stars and exclude this group as they are your lifeline.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is this aspiration that has led to the exponential rise of the market of knock offs and first copies.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">To sell or not to sell (to the masses)? That is the big question that all retailers of luxury brands face.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Most of them have been able to strike a balance. The key lies in pricing. But the entire process has a few elaborate steps:</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1. Identify the products that are your signature and add a signature premium to their prices. They are not for Great Indian Middle Class or GIMC to buy, but they are their aspirations. These products will always be displayed on the boutiques, mostly their pictures, as signature products are always out of stock and a fresh stock is always on its way from Germany or France. They make the GIMC keep coming back.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2. Identify the products that you want the New Maharajas to buy. Special edition pieces, hand crafted. These should be there for display so that they can feel it and then take it home. These have a premium attached to them due to their exclusivity. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">3. And then there are products that are masstige, they are to whet the appetite of the GIMC, so that they can flaunt that they own a logo of the brand they always aspired to buy.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The most interesting part about point 3 is that these companies never advertise to this class, so there is no brand dilution. This class, however, advertises and brands these products to the other target audience in the same class, all for free. So the companies generate strong brand pull with this segment, most importantly, the aspiration lives on and grows.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-stretch: inherit; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">F.Democratization of luxury: The rise and rise of the masstige</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1.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 democratization of exclusivity of royalty. You will be treated like a king, if you have the moolah. Life is just that simple.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2.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.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">And they want the hottest, trendiest designs, which increasingly have to be marketed in creative (and expensive) ways including product placements on TV sitcoms.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">They are the hottest clients for all luxury retailers and needs to be wooed with royalty and exclusivity.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let your quest for luxury continue.<a href="http://retail.economictimes.indiatimes.com/re-tales/A-brand-s-guide-to-luxury-retailing-in-India/381">A brand’s guide to luxury retailing in India</a></span>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-39153710214743697512014-10-08T23:59:00.002-07:002014-10-09T00:01:46.122-07:00Luxury buying is driven by a three-letter word: EGO<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Ego is very tricky. It can make you, it can break you. Sometimes you may also like to say like John Lennon: “Part of me suspects that I'm a loser, and the other part of me thinks I'm God Almighty.” J</span><img src="http://retail.economictimes.indiatimes.com/files/nicUploads/591242114780471.jpg" style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" width="0" /><img src="http://retail.economictimes.indiatimes.com/files/nicUploads/550071808276698.jpg" style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" width="0" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">ust like with people, brands also have to be careful in dealing with ego.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Ego creates brands, makes them reach heights that they could have never reached with humility.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">My dear Watson, said Sherlock Holmes, I cannot agree with those who rank modesty among the virtues.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">However, some other times it pulls them down and crushes them. Your brand has to be worth its ego.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">A luxury car brand once run an ad where the car did not have a fuel tank. The arrogant tagline said: “A car that runs on reputation”.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is all about being special or exclusive, to be someone who is not ordinary. Of being able to dazzle or “luxe”. Of being able to stand out in the crowd. This razzle-dazzle industry thrives on ego.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">To idea that a marketer sells is that this luxury brand is exclusive and it will make you exclusive as well, youwill belong to an elite club that you will be ableto flaunt such as a Lamborghini Club. “Money can’t buy happiness. But, somehow, it is more comfortable to cry in a Lamborghini than on a bicycle”, Lamborghini Gallardo slogan quite captures the ethos.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The arrogance that a brand exudes, mostly using prohibitive pricing to crowd out clients, will make it aspirational. So the users will get an elevated feeling that he is part of an exclusive club. When Rolex says “Live for greatness” it is not talking about the product, or the patented perpetual movement, or the oyster casing, or the brilliant design, it is a life that the watch brand is giving you. It is making you part of a legacy of great people, of JFK or of Martin Luther King Jr stature. Rolex has always been a very masculine brand. The male ego that Rolex has been able to develop and nurture over decades has proved instrumental for the company’s success and it is still revelling in that glory. So Rolex is selling a legacy, a life of greatness, a masculine ego that craves for being distinguished.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Another example is Louis Vuitton. “There are journeys that turn into legends,” when LV used this tagline for Sean Connery during its core values campaign, it was not selling the classic keepall travel bag. It was selling legacy, the legacy of travel, of a great legendary travel, and that too with a legend. It is the club that you join for again, greatness, to become part of a legacy. It is never about the product, but the legacy, the greatness, the extra-ordinariness.</span><br />
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<img src="http://retail.economictimes.indiatimes.com/files/nicUploads/419039795175195.jpg" style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" width="200" /><a href="http://retail.economictimes.indiatimes.com/re-tales/Luxury-buying-is-driven-by-a-three-letter-word-EGO/336">http://retail.economictimes.indiatimes.com/re-tales/Luxury-buying-is-driven-by-a-three-letter-word-EGO/336</a><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The hunger to leave a legacy or become a part of it is what the brands sell. The art is in not only selling the inclusion but more so selling the exclusion.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">India’s noted graphic novelist and my friend Sarnath Banerjee (author of Corridor and Harappa Files) in a story, has captured the essence of this “exclusion principle”, albeit in his own comic panache. There are customers who walk in and quickly check a few models and close the buy. However, there are others who come down to check out a an expensive car like a Rolls Royce or a Jaguar, but is not sure whether it is worth that premium and almost certain that it is not worth the value. He is a person who will go for a more economical car with a better mileage but is also greatly intrigued by the legacy of the car. The car salesman just senses that and tells him what he is exactly feeling like. So he is confused why isn’t the salesman hardselling the car? And thereby hangs a tale. The salesman very cleverly says that these luxury cars are not for “people like you and I” who will prefer more value for their money and not invest in such “esoteric and intangible” notions of legacy. After four-five such examples of “people like you are I” the salesman closes the deal. The customer buys into the legacy story just to prove he does not belong to class of “people like you and I”. He is different and definitely is part of the legacy. </span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">So this is how the “exclusion principle” works. You are in a queue, waiting eagerly, to be treated as special.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">This is a strategy that luxury brands use in tapping into the potential customers who have the money but are not convinced about the value for their buck that such luxury product will bring to their lives. They are, however, also intrigued to see how people who are part of the existing esteem clientele are treated a little differently by the boutique managers. Not that the potential clients are ignored but they are subtly sent the message that “you also can become a part of this elite treatment and legacy if you use your cash or card a little more generously”. The exclusion principle makes these clients intrigued and they, in spite of having the means, feel dejected. This is where “greatness” and “legacy” comes to the rescue. So when that aspect is taken into consideration, the deal is no more only value for money but also “totally worth it”. </span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">And “for people like you and I” who doesn’t have the means, keep aspiring and writing about the legacy.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Your legacy is just a swipe away.</span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let your quest for luxury continue.</span><br />
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<span style="background-color: white; line-height: 26px;"><span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">http://retail.economictimes.indiatimes.com/re-tales/Luxury-buying-is-driven-by-a-three-letter-word-EGO/336<a href="http://retail.economictimes.indiatimes.com/re-tales/Luxury-buying-is-driven-by-a-three-letter-word-EGO/336">My ET Retail story</a></span></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-22556444435760030492014-09-07T09:42:00.002-07:002014-09-07T09:42:39.675-07:00The world of luxury counterfeits just a click away<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">I have a soft corner for watches and I had apparently almost twisted the arm of my former boss Mr Sanjiv Goenka, Chairman of RP-SG group, to see his brand new Breguet (It is a story that he loves to narrate). Mr Goenka knows I am crazy for watches so he is sweet enough to forgive me and let me indulge, even with his IWC. Similarly, Mr TV Narendran , MD, India and SE Asia, Tata Steel, very kindly also lets me admire his black Chopard while I narrate to him the details of the making. However, I broke the heart of a close friend with this habit. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Very recently, a close friend of mine was sporting a Rolex day date white gold. I did the same thing with her and to my shock realised it was a fake. It was lighter than even my steel Rolex, the identification number was missing, among other details. She very confidently told me it isnt as there was a certification of authenticity given by the company and the portal that she bought it from. The price she had shelled out was a fraction of the original price, but significantly more than of a first copy. The news that she has been duped by an e-commerce firm broke her heart. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">On Facebook you might encounter a page where they are selling luxury products at a tempting discount all round the year. The product ranges from shoes to watches to handbags of the luxury brands like Rolex, Louis Vuitton, Gucci, Mont Blanc and what have you. Tempting! So I decided to check them out and to my dismay found they were counterfeits. And some were not even on the catalogues. But to an untrained eye, it will lure you and you will fall in its trap just like my friend. I was happy when I came to know that LV and Mont Blanc have noticed as well and have filed a lawsuit against Chandigarh-based ecommerce firm Digaaz in Delhi High Court.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">The counterfeit market statistics</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let me give you a sense of the size of the market with some statistics. Growing at a compounded annual growth rate of almost 40-45 per cent, the counterfeit luxury products market in India is likely to more than double to Rs 5,600 crore from the current level of about Rs 2,500 crore. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">A reason why the fakes luxury market is growing at such a fast pace is the advent of e-commerce platforms selling them at lucrative prices. An Assocham report says that the web shopping portals account for over 25 per cent of the fake luxury goods market in India. For instance, first copies of these premium brands are easily available on c2coffer.com, an online portal, within a week of official launch of the original collection. Even other platforms like Quikr and OLX offer replicas. While Quikr has a replica Hermes belt for Rs 350, Watchlo.com or the Facebook page watchmaniaforyou stocks first copies of around 20 brands, including TAG Heuer, Omega, Rado, Patek Phillipe, Chopard and Bvlgari. These are just a few of the numerous options from which you may choose from and all from the comfort of your home with a doorstep delivery and cash on delivery provision.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The size of counterfeit luxury industry in India is currently about five per cent of the overall market size of Indias luxury industry which currently is worth over $8 billion. With a share of about seven per cent, fake luxury products account for over $22 billion of the global luxury industry worth about $320 billion.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Luxury counterfeits are not a new phenomenon, but with technological advances and sophisticated new ways to reach consumers, the business is increasing rapidly. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">In the past, luxury counterfeits were often shipped in large cargo containers and passed through numerous middlemen before reaching consumers on the streets. Now counterfeit sellers set up online presences on auction or marketplace sites and ship luxury counterfeits directly to consumers. They also use the Internet and social media tools to generate web traffic and to divert consumers to rogue e-commerce websites selling their goods which often have the same look and feel as the brand owners site. Compared to the purchase of a fake handbag on the street, the purchase of a bag online makes it harder for a consumer to tell whether the product is genuine. An online ad for a Gucci bag could show a photo of a genuine Gucci bag, but the purchaser would actually receive a fake one. The counterfeit seller may create pseudo product reviews, blog entries and rogue social media profiles to enhance its legitimacy. Susceptible consumers may fall for this fake content. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">According to a report by Anna Maria Lagerqvist and Hanna Bruck in Valea International, in 2009 Eurobarometer statistics, 22% of EU citizens have unknowingly bought counterfeit goods. As shopping online is considered entirely legitimate, online counterfeit products may attract consumers who would never purchase a Louis Vuitton handbag in a dark alley. The Internet creates a situation where the marketplaces for counterfeit products and for the genuine article are suddenly the same.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Further, online shops give the buyer a sense of anonymity and impunity. Given the seemingly boundless scope of the Internet, luxury brand owners come across anonymous online counterfeit sellers every day.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Over 80% of the imitation luxury products being sold in India comes from China, says D S Rawat, Secretary General of Assocham in the report, adding, Most of these comprise of handbags, watches, shoes, clothes, hats, sunglasses, perfumes and jewellery.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">According to a 2012 report on the luxury retail market by Cognizant, brands such as Kate Spade and LV typically hire private investigators to find where counterfeits are sold. On the other hand, Indian stores like Kitsch, offering high-end labels inform the head offices of brands when they come to know about an individual or a store selling copies.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">Quality difference among fakes</b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">There is a world of difference between replica, first copy and fake. There are huge qualitative differences between counterfeits. In my recent visit to Bangkok, I was exploring the counterfeit market. The two brands that dominate the world of replicas are Rolex and LV.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Take for example a Rolex watch. I was checking out a Rolex all gold Day Date counterfeit across quality standards. The difference in prices between a first copy and a fake is 75%. The first copy was heavier, the steel quality was superior, the plating was much neat and there was even an identification number! While the fakes even had models that never made it to the catalogues of Rolex, the first copies were sold with the original catalogue by their side. Very impressive indeed.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Similarly, was with the replicas of LV. Even to a trained eye the monogram or damier ebene will be hard to decipher. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">On the online platform however, the fakes dominate. The first copies and replicas (in the true sense) cant make a mark as on the online platform, no customer will be ready to give the premium. While a Rolex fake may be available at Rs 5,999, a first copy will cost at least double that, for difference that are not visible to untrained eyes, especially while comparing online.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">In defence of counterfeits </b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Sometimes I tend to question whether these brands have a legitimate justification for charging such a prohibitive premium for their brands. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">A few counterfeit watch dealers have showed me copies of complicated watches and how their watchmen were able to replicate to the very details of the original. The cost of their labour? Well, just a fraction of the cost of the labour of a legitimate watchmaker with a luxury brand. When I see the detailing my heart goes out to them, but not to the dealers. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The counterfeit market is eating into not only the pie of the luxury brands but also into pie of the premium brands. Say if someone can afford a Tissot and aspires to wear an Omega Seamaster, gets a Rolex first copy at Rs 5999 online. Tissot and Omega both lost in the battle, for no fault of theirs.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">From the buyers perspective, understand this, the difference between the cost of making a Gucci or LV handbag and the MRP is significant and that is the brand value. The buyer is getting a cheap quality leather handbag but along with that perceived brand quotient in a fake at an affordable price and at their door steps.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is just a click away. </span><b style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;"></b><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">To conclude, let me quote the bard: A fake is a fake is a fake is a fake. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let your quest for luxury continue. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><a href="http://retail.economictimes.indiatimes.com/re-tales/The-world-of-luxury-counterfeits-just-a-click-away/184">http://retail.economictimes.indiatimes.com/re-tales/The-world-of-luxury-counterfeits-just-a-click-away/184</a>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-33999808004389368232014-09-07T09:40:00.002-07:002014-09-07T09:40:51.600-07:00The theory of relativity<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Luxury is not universal. Luxury, as my readers will know by now, has come from the word luxe which means dazzle. Now the luxe factor is fundamentally relative. What dazzles one need not dazzle another. The second layer of difference lies in the degree of dazzle.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><img src="http://retail.economictimes.indiatimes.com/files/nicUploads/563540232833475.jpg" style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px 0px 15px; max-width: 100%; padding: 0px; vertical-align: bottom;" width="640" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">image courtesy: </span><a href="http://https//www.flickr.com/photos/deidrew/4560570191/in/photolist-7X17Cx-fv7Zo1-dKrvk8-j5TNzh-eSgqnn-aUttYM-6BBipw-dh9Lcq-dh9LMp-dh9LyN-kwAa58-dh9LYT-dh9LS8-dh9M5X-dh9LCn-dh9LPr-dh9LTB-dh9LFa-dh9LKK-dh9LqW-dh9LvW-dh9M3H-dh9M1k-dh9LtJ-dh9Lah-dh9LxU-dh9LhY-dh9LWt-dh9LeY-b71Abv-7XRhun-7wZV4V-h3JWao-7Fmeua" style="background-color: white; color: rgb(0, 175, 223) !important; cursor: pointer; display: inline-block; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; text-decoration: none;" target="_blank" title="Flickr">Flickr</a><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let me elaborate with a few Indian examples the degree to which the razzle-dazzle differs. I drool over a Cartiers Panthere ring, or a Louis Vuitton hot-stamped trunk, or a Harley Davidson Fatboy. So, for me, that is luxury. Now let me compare apples to apples. Let us see now to bring in the luxe factor what the Richie Riches of our poor nation had done: 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: </span><a href="http://http//retail.economictimes.indiatimes.com/re-tales/Democratisation-of-Luxury/99" style="background-color: white; color: rgb(0, 175, 223) !important; cursor: pointer; display: inline-block; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; text-decoration: none;" target="_blank" title="Democratisation of Luxury">Democratisation of luxury</a><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">)</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">That is a key differentiator that every luxury brands need to study understand very clearly. In luxury branding one size fits all just doesnt work. It is a space for bespoke, for customisation, for making every customer feel special and justify the brand premium in pricing.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The greatest challenge that a luxury brand faces is in mixing the right portion of snob-value. It cant be so much that you alienate others but it cant be so less that the clients dont feel the exclusivity. The magic potion lies in the right portion. It is both the presence and the absence of snob quotient, both co-existing, side by side.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">You need to have the low-hanging accessories like sun glasses or perfumes or key chains or coin purses or scarfs or what have you. They will not only lure a genre of clients who are heavy spenders in premium brand space and are yet to turn big spenders in luxury space as they are not sure the return on investment or RoI as we call it in the corporate parlance. For them, these low-hanging fruits are only value-for-label. So they just pay for the logo and are happy as they spend it within their budget and not frivolous but smart. They think of these spends as it is a deal man to own an LV for such a price, the product may be a key chain or a coin purse but who cares. Logo rules!</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">With time, a certain segment of this class realises the efficacy of the entire experience of luxury shopping, it is just not the product, it is the experience that you pay the premium for. Again to some it is worth the buck, to others it isnt. Everythings relative.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The ease with which they migrate may differ but the migration is destined. You are no longer satisfied by the key chain, you need to flaunt the wallet, shoe, handbag, specs, pens, ties, what have you. This is just stage 2. The more you rise the stages the stickiness increases with the brands. Stage 3 is when you are a regular user of luxury brands and you have made a complete migration from super-premium to luxury, even in your articles of daily use to daily wears. You are so used to luxury shopping experience that you start feeling uncomfortable if you shop anywhere else -- there is a little unease, out of place feeling. You are officially a luxury man or woman -- it is a part of your life. And you embark on the big tickets buys. Congratulations, you are now a member of the world of dazzle, not a guest. So the LV key chain that used to dazzle you some time back seems relatively less prominent amidst the Cartier wallet, Bulgari frame, Bottega Veneta bag, Salvatore Ferragamo shoes, Gucci belt, an LV briefcase and a Rolex. You are no longer dazzled by these but you become a luxury who inspires others, just the way a member invites guests to an exclusive high-brow club.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The critical part remains for the brand in handling clients of all Stages-- from 1 through 3 -- in the luxury world so that the ever-changing dazzle-quotient remains intact. That quotient is their bread and butter, no luxury brand should ever forget that. </span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let me give you an example of the Cartier store. My friend, the boutique manager, tells me that every client is important, no matter whether he/she is here for a wallet, a watch, or a Trinity. However, there is a subtle difference in the degree of engagement among all the three segments. Clients in every segment needs to feel special but they must also feel a little left out in terms of the treatment that is meted out to big-ticket buyers. This aspiration keeps the store running. There is a room in the store, beautifully decorated where hi-value deals are made. It is beautifully decorated with a touch of the history of Cartier and its India connect. The special Trinity and Panthere are on display, which are no longer crafted or sold, they are for your eyes only. So for the watch buyer, an entry into that coveted room is an aspiration and that brings them back. Relativity rules and makes big bucks for these brands.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The mortal crime for any boutique assistant or manager is to judge a client by his or her clothes or the capability to talk in English. This deserves a capital punishment. This kind of exclusion will end up shutting that store. My friend, who is pretty rich and has a great collection of luxury-branded handbags, including Burberry, visited the Burberry store in Kolkatas Quest mall. She was wearing a torn jeans, a white tee and flip-flops. The boutique assistant was to her surprise, not clean shaven and had a day-old stubble, which was criminal as it shows how callous you are and how you are not bothered about grooming, and so how unfit you are for a luxury boutique. When she asked him to show a particular bag, he first told her its price and looked at her. She immediately left the store and swore not to visit it again. A permanent loss of a potential client and a lot of bad publicity, the latter is lethal for a newly launched boutique, just for a wrong judgement.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">This is how a mix of snobbery and relativity can make or break the reputation of your boutique and thus brand. It is all in the soft skills and presence of mind as to how to lure clients and nothing to do with the quality or design of the luxury product.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is all about the theory of relativity -- sometimes special, sometimes general.</span><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" /><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Let your quest for luxury continue.<a href="http://retail.economictimes.indiatimes.com/re-tales/The-theory-of-relativity/253">http://retail.economictimes.indiatimes.com/re-tales/The-theory-of-relativity/253</a></span>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-87449876450279060062014-09-07T09:37:00.001-07:002014-09-07T09:37:16.061-07:00Working Title: Seven Ages of Brand<div class="MsoNormal">
<span style="background-color: white; color: #252525; font-family: Garamond, serif; font-size: 14pt; line-height: 16.8pt;">All
the world's a stage,</span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">
And all the men and women merely players.<br />
They have their exits and their entrances,<br />
And one man in his time plays many parts,<br />
His acts being seven ages. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Just
like the Seven Ages of Man described by William Shakespeare, a Brand also has
Seven Ages. The book aims to capture these stages of a Brand – from conception
till death and rebirth. Just like a man, a brand also goes through the motions
of life and has its share of ups and downs and it also eveolves with time and
maturity. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 1: The infant<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">At
first the infant,<br />
Mewling and puking in the nurse's arms.<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--><o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">1A:
Conception: <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Conveiving
a brand by accident or by planning. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Why the
brand? Raison d’etre.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Some
anecdotes of brand conception.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">1B:
Birth<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Determining
the Brand Gender: Brands inherently have a gender. Say a Rolex or Old Spice are
msculine brands whereas Chanel or Dior are feminine. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">So
based on the gender of the brand the entire life journey is planned.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">This
will cover the facets of brand gender. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Whether
incubation is needed: If the brand is launched prematurely, there is a need for
immediate incubation, just like with babies. The incubation saves the brand and
makes it stronger to face the world. The parents realise that the brand is too
fragile to withstand competition and will die prematurely. So this forces the
parents to strenthen the brand and make it fot for survival.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 2: The whining schoolboy<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Then,
the whining school-boy with his satchel<br />
And shining morning face, creeping like a snail<br />
Unwillingly to school. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">2A:
The early years: This is the time of doubts, the irritation of failure, the
sweetness of initial success. The exposure to criticism. The is the time when
you realise the strengths and weaknesses, the areas that need nourishment.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">2B:
The teen/adolescent/puberty: You start realising the changes (hormonal) that a
brand is undergoing. This is a critical time when you need to be patient as
even a well thought through plan may go haywire and this is when the brand
starts developing character. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 3: The lover<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">And
then the lover,<br />
Sighing like furnace, with a woeful ballad<br />
Made to his mistress' eyebrow. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">A
confident young brand that falls hopelessly in love with itself. It just sees
how beautiful it is and keeps admiring the story of its birth and growth. This is
a time when “Brand Ego” takes birth. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 4: A soldier<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Then,
a soldier,<br />
Full of strange oaths, and bearded like the pard,<br />
Jealous in honour, sudden, and quick in quarrel,<br />
Seeking the bubble reputation<br />
Even in the cannon's mouth. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">The
dominance of Brand Ego: This is dedicated to the facets of Brand Ego. “A car
that runs of reputation” is one such example. Rolex, LV, Rolls Royce. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">This
segment will explain what is meant by brand ego and what defines it in details.
<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 5: The
justice<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">And
then, the justice,<br />
In fair round belly, with a good capon lined,<br />
With eyes severe, and beard of formal cut,<br />
Full of wise saws, and modern instances,<br />
And so he plays his part. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">The
maturing brand: Ego grows, wisdom grows. The brand now has more clarity of its
clients/TG and even about its strngths and weaknesses. But ego still plays a
significant role. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 6: Into
lean and slippered pantaloon<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">The
sixth age shifts<br />
Into the lean and slippered pantaloon,<br />
With spectacles on nose and pouch on side,<br />
His youthful hose, well saved, a world too wide<br />
For his shrunk shank, and his big manly voice,<br />
Turning again toward childish treble, pipes<br />
And whistles in his sound. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">This
is a time when the brand starts to show signs of fading. This is when there is
the conception of a revamp. The idea that the brand is nearing death looms
large. So the custodian/parent looks at ways to save the brand or rebuild the
brand or even the birth of a new brand.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter 7: Second childishness<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Last
scene of all,<br />
That ends this strange eventful history,<br />
Is second childishness and mere oblivion,<br />
Sans teeth, sans eyes, sans taste, sans everything.<sup id="cite_ref-7" style="unicode-bidi: -webkit-isolate;"><a href="http://en.wikipedia.org/wiki/All_the_world's_a_stage#cite_note-7"><span style="color: #0b0080; text-decoration: none; text-underline: none;">[7]</span></a></sup><o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin: 6pt 0in;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;"><br />
The death of the old brand. The birth of a new brand. The second life of the
brand. <o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Appendix:<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter A:<o:p></o:p></span></b></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Brand
perception: The consumer behaviour and classification. This will capture is
details how the different categories of customers perceive brands differently.
A special reference to consumers of luxury brands.<o:p></o:p></span></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">Chapter B:<o:p></o:p></span></b></div>
<br />
<div style="background: white; line-height: 16.8pt; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: #252525; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">The
brand for te 3Ps: Personality branding/Professional branding/Product branding.
How to brand your reputation, how to brand your profession, how to brand your
product: aspects, what it means, dimensions. <o:p></o:p></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-52087647712472473482014-04-21T01:52:00.001-07:002014-04-21T01:53:21.220-07:00The Great Indian Middle Class Dream<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">All the major luxury brands owe their existence to one class of buyers: The Great Indian Middle Class (GIMC). The New Maharajas, before you raise your brows, let me explain it to you as to why you do not drive the luxury market in my motherland. The fun part is dear New Maharajas that not only yours truly but the brand custodians of the luxury products who are trying to either make their mark in this country or are trying to expand their pie will also silently agree. </span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">There is one big purchase of a hotstamped monogram LV trunk, and then, simultaneously, hundreds of monogram belts, monogram small wallet scarfs, bracelets, and the likes are sold. LV reaches one New Maharajas household, may be for the nth time, but it also reaches hundreds of households of The Great Indian Aspiring Middle Class for the first time.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Wikipedia defines masstige as a marketing term meaning downward extension of a brand. The word is portmanteau of the words mass and prestige and has been described the prestige of the masses.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is luxury or premium but surely attainable.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Masstige is all about feeding into the aspiration of millions. The biggest challenge, however, is how to keep the aspiration alive. What if the brand loses its exclusivity and elitism in trying to just dip into the mass market? But at the same time the raked up </span><i style="background-color: white; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px; margin: 0px; padding: 0px; vertical-align: baseline;">moolah</i><span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;"> is hard to ignore.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">To sell or not to sell (to the masses)? That is the big question that all luxury brands face.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Most of them have been able to strike a balance. The key lies in pricing. But the entire process has a few elaborate steps, a luxury brand manager had once patiently explained to me:</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">1.Identify the products that are your signature and add a signature premium to their prices. They are not for GIMC to buy, but they are their aspirations. These products will always be displayed on the boutiques, mostly their pictures, as signature products are always out of stock and a fresh stock is always on its way from Germany or France. They make the GIMC keep coming back.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">2.Identify the products that you want the New Maharajas to buy. Special edition pieces, hand crafted. These should be there for display so that they can feel it and then take it home. These have a premium attached to them due to their exclusivity. </span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">3.And then there are products that are masstige, they are to whet the appetite of the GIMC, so that they can flaunt that they own a logo of the brand they always aspired to buy.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">The most interesting part about point 3 is that these companies never advertise to this class, so there is no brand dilution. This class, however, advertises and brands these products to the other target audience in the same class, all for free. So the companies generate strong brand pull with this segment, most importantly, the aspiration lives on and grows.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Shopping malls in order to lure the GIMC towards luxury and to give them its taste are mixing luxury, super premium and premium in the same shopping mall. The Palladium in Mumbai or The Quest in Kolkata has a mix of all three segments: all under the same roof.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">It is this aspiration that has led to the exponential rise of the market of knock offs and first copies. This is an aspect that I will dwell in details in a later post but for the time being let me briefly help you understand the rationale behind spending hard earned money in low quality fakes.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Well readers, it is aspiration, yet again. Not always is it possible for GIMC to say, buy a scarf 30k, when with that money he could have bought jewellery. And what are the chances of that scarf surviving the washing machine or the domestic helps onslaught? At the end of the day it is a piece of cloth.</span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">This is where the knock off market comes handy. You get a similar scarf for Rs 500 and only a trained eye will be able to tell you the difference. If it is torn, you will just get another brand this time, for the same price. It is a perfect arrangement. The same is true for belts, small leather good, coin purses, and the likes. The most luring part is that you can even aim for a big product, a decent copy, at a price which is just a fraction of the price of the original, but more importantly, the GIMC could have never owned it. The two most faked brands are perhaps the two most-aspired brands: Louis Vuitton and Rolex. </span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">Coming back to the tale of the low-hanging affordable fruits of the luxury tree, the Great Indian Middle Class will go out of their way to own a piece of that brand, sleep with it and dream about the bigger signature pieces in the larger-than-life posters at the boutiques that always tease them, lure them like a seductress. </span><br />
<br style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;" />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;">May your quest for luxury continue.</span><br />
<br />
<span style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; line-height: 26px;"><a href="http://retail.economictimes.indiatimes.com/blog/The-Great-Indian-Middle-Class-Dream/157">http://retail.economictimes.indiatimes.com/blog/The-Great-Indian-Middle-Class-Dream/157</a></span>Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-26698897065886762182014-02-05T21:48:00.002-08:002014-04-21T01:55:36.962-07:00Democratisation of luxury<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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. </span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">(Read: The mechanics of luxury retailing)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm;">
<span style="color: #333333; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Now let us look at the rise of the
so-called “masses”. </span><span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm; vertical-align: baseline;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">And they
want the hottest, trendiest designs, which increasingly have to be marketed in
creative (and expensive) ways—including product placements
on TV sitcoms.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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."</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Luxury
brands extend downwards with these low-hanging seemingly “affordable” fruits to
capture the masses and to whet their appetite.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">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.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 4.8pt;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Democratisation,
the great leveller. </span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 4.8pt 0cm 6pt;">
<div style="line-height: 150%;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Let your
quest for luxury continue.</span><span style="color: #222222; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></div>
<div style="line-height: 150%;">
<span style="color: #4a4a4a; font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><br /></span></div>
<a href="http://retail.economictimes.indiatimes.com/blog/Democratisation-of-Luxury/99">http://retail.economictimes.indiatimes.com/blog/Democratisation-of-Luxury/99</a><br />
<span style="color: #4a4a4a; font-family: Garamond, serif;"><span style="font-size: 19px; line-height: 28px;"><br /></span></span>
<span style="color: #4a4a4a; font-family: Garamond, serif;"><span style="font-size: 19px; line-height: 28px;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 11.25pt; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="color: #222222; font-family: arial; font-size: small; line-height: 19.5px;">
</div>
<div class="MsoNormal" style="line-height: 150%;">
<br /></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-87205389111051244032014-01-07T01:31:00.003-08:002014-01-07T01:31:55.172-08:00Why the farmer will never get rich<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">(My first editorial piece for The Economic Times Jan 11, 2007)</span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Imagine there's no countries. Unwittingly, John Lennon captured
the essence of globalisation in this song. It's an engine to integrate markets
so a farmer in a remote district of Maharashtra is almost as well off as his
counterpart in US. However, the key word is imagine. Why? You'll know soon.
Let's ask the farmer whether he understands globalisation or if he has heard of
Joseph Stiglitz or Jagdish Bhagwati. No? But, isn't he the one the noted
economists are fighting for?<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Hardliner Stiglitz takes a softer path — converts his
discontents (as evident from his book Globalisation and its Discontents) to a
solution in Making Globalisation Work. The solution is easy to implement, but
only theoretically. It's actually like the song. To start with, we need to
imagine all the countries are at par — there's no first, second or third world.
They discuss agreements on agriculture. Let's restrict globalisation to trade
and not stretch it to terrorism. As they say, with attacks in foreign countries
having no direct relation with the attackers' own country, terrorism has also
globalised.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: .6pt;">
<span style="color: #393939; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-no-proof: yes;"><!--[if gte vml 1]><v:shapetype id="_x0000_t75"
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<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">At a WTO meet, unlike the Uruguay round in Marrakesh, they agree
to share their markets for agricultural good. They make trade laws, clauses,
discuss the little boxes of subsidies and the intellectual property rights.
Unfortunately, the green, amber and blue little boxes aren't all the same (as
in the song). Because in the real world, they are used by the first world as an
instrument to manipulate the quantum of subsidies.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Anyway, for our farmer, the market will no more be his village,
it may now be somewhere in Europe. They pay him in euros and give the best deal
available globally. Wow! That means our villages will eventually not remain
poor. Therefore, being an agro-based country, India can become rich — the
so-called first world. Hold on, do I smell a circular logic? Of course, our
assumption was there's only one world, that is, we are already rich (or poor) —
as rich (or poor) as the US.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">But, what if we don't imagine? We realise the world isn't
integrated and the first world nations are dictating terms to the third world.
Globalisation is used to penetrate the untapped markets of the developing
nations. The terms are tailor-made to suit the needs of the haves at the cost
of the have-nots. So our farmer remains poor, exploited now by some European
agent. India can walk out, deny, but perhaps, can never dictate terms to the
developed world. What the hell, it's just a song. We may be the third world,
but we can imagine.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">You may say that I'm a dreamer But I'm not the only one I hope
someday you'll join us And the world will be as one.</span><span style="font-family: "Garamond","serif"; font-size: 14.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 8.85pt; mso-line-height-alt: 10.6pt;">
<a href="http://articles.economictimes.indiatimes.com/2007-01-11/news/27679479_1_globalisation-farmer-countries">http://articles.economictimes.indiatimes.com/2007-01-11/news/27679479_1_globalisation-farmer-countries</a></div>
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<span style="color: #404040; font-family: "Garamond","serif"; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0tag:blogger.com,1999:blog-37228342.post-83267609159297978902013-12-27T05:45:00.001-08:002014-04-21T01:57:07.133-07:00Luxury consumers decoded<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">It is not easy to classify the Great Indian luxury consumers. Though
several attempts have been made over the years, somewhere we Indian have been
able to confuse these classifiers. A classic example was when I saw a gentleman
driving a Mercedes E- Class towards the CNG counter of the petrol pump.
Although we need to show off or flaunt our status with luxury we can’t help
save every penny that we possibly can. Another classic example was when I saw a
friend strapping a limited edition Omega with a Titan because “the Omega strap
is very expensive”. This gentleman is a high-flying executive with an MNC. <o:p></o:p></span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">In a recent CII-IMRB study on the changing face of
luxury in India they have classified the luxury consumers in an interesting
manner into experientialist, connoisseur, flaunter and aesthete. <o:p></o:p></span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">However, you must remember that no matter how much you try
to classify us Indians, we are a heady mix of all the above and much more than
any study could possibly gauge. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">First, the experientialists: <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">This consumer typically values new and exciting experiences
more than buying products or brands. They spend on the experiences. In their
structured lives they seek a getaway and so their spends primarily include
five-star hotel stays, fine dining or adventurous/thrilling experiences. Luxury
to them brings up images of being suspended in time and space, not having the
press of daily life and work responsibilities thrusting into their minds as
they enjoy the time away. <o:p></o:p></span></div>
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<span style="font-family: Garamond, serif; font-size: 19px; line-height: 21px;">An exquisite piece of art or a handcrafted timepiece may also give a similar experience when you are just in a space where you are appreciating the beauty of it. It is a time warp, every time you look at it, you become so mesmerised by the beauty that you forget your meetings and deadlines. The experience is the luxury, the experience is the dazzle or luxe (Read: The Quest for Luxury).</span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Personalisation of experiences takes luxury to a new level.
Personalisation of menus at fine diners is no longer reserved for the elite.
Even sometimes the name of the customer is printed on the menu. So yes, this is
value for the buck for an experientialist. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">For these consumers, going forward the trend will be to
stay in specialty boutique hotels or resorts, luxury spas or private apartments
and villas when on a holiday. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Now let’s meet the connoisseurs: </span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">This segment is passionate in
certain areas of interest and makes it a point to be well informed and
knowledgeable about it. These categories could be art, scotch, wine, watches,
writing instruments, cigars, horses, and the likes. These connoisseurs get
together and appreciate the finer aspects of their passion. They form clubs and
get together for a quiet appreciate of luxury of the creation. It may be a
horology society or a wine club or a scotch club or a cigar group. </span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">This segment
just revels in enjoying what they appreciate the most. Like in Kolkata there is The Calcutta Malt and
Spirits Club and in the capital there is Delhi Single Malt Club where members
come together, discuss, study, debate and share their appreciation and
experience in high spirits (no pun intended). Similarly, there are elitist clubs of connoisseurs for appreciation of Cuban cigars and timepieces across the country.<o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">They will spend their time and money in pursuit of the
collection of personal passion points. They make the pursuit of their area of
passion a mission and pursue it with zest. </span><span style="font-family: Garamond, serif; font-size: 14pt; line-height: 115%;">When it comes to limited editions, or handcrafted editions
or spirit of the bygone era, these connoisseurs will not bat an eyelid for
spending a fortune.</span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">They are unlikely to place value on brands unless it stands
for exquisite exclusivity. They tend to prize themselves on the knowledge of
esoteric brands that are not widely known. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Luxury to them is purely a matter of the level of
craftsmanship, the number of man hours spent, and thus the quality of the
products or services that they buy. Niche, but specialised brands across
categories will make their mark with these consumers. Their willingness to pay
is high. Curated services that brings such products to them will be a great
getaway to tap into their need for excellence. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">The next segment, I believe is the life force that drives
luxury in India. Meet the flaunters: </span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">A socialite friend who used to swear by a
clutch that she used to take to every party had secretly told me that she isn’t
that fond of it but only carries it for the LV monogram tag. That's the power of a brand of this genre.<o:p></o:p></span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Welcome to the world of flaunters. They tend to value brand
name over all other factors. Purchase of a brand is a signal of their status in
their society and so visibility of the brand name is important. It is also
important for the brand to be aspirational, otherwise, what's the big deal? Badge
seekers at the stage where the brand name itself is the biggest status
indicator is seen mostly with the newly rich or new money class, especially
among their young members. There is a strong desire to prove to the society
that they have entered the elitist luxury brand-wagon. <o:p></o:p></span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">In a survey more such consumers were seen in cities like
Ludhiana, where they justify the ownership of brands by stating that they are
now in a status or position which makes it de rigueur. </span><span style="font-family: Garamond, serif; font-size: 14pt; line-height: 115%;">The most interesting thing about this class is that brands
are on a continuum. They can show off Zara as a daily wear to Prada on special
occasions with élan.</span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">As flaunters move up the societal ladder, the badge value
is conferred not only by the brand but also by the level of difficulty in
obtaining the product or service. Dinner reservation at hard-to-get
restaurants, Birkin or Kelly bags for which the wait list is over four years,
monogrammed and hot stamped Louis Vuitton bags with their initials, accessories made from
exotic leather like of crocodile or snake – the ability to acquire these with
relative ease is a reflection of their status. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Well known but exclusive services and products are the way
forward for tapping this segment of consumers. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">And last but not the least, I present to you the aesthetes:</span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">To this genre, t</span><span style="font-family: Garamond, serif; font-size: 19px; line-height: 21px;">he brand is much less important than the design.</span><span style="font-family: Garamond, serif; font-size: 19px; line-height: 21px;"> </span><span style="font-family: "Garamond","serif"; font-size: 14pt; line-height: 115%;">Aesthetes are luxury consumers purely because they have
arrived at a state of income due to which they can indulge in their love for
design among luxury brands or products. </span><br />
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<span style="font-family: Garamond, serif; font-size: 14pt; line-height: 115%;">They will
shell out a bomb because the object of desire is hand stitched and not because
of the label. They pride themselves for having an eye that picks out the unique
and bold in design.</span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">The difference between them and the connoisseur is that the
latter has certain passions which they follow with zeal and the quality and
craftsmanship are very important. However, for the former category, it is the
aesthetic appeal, the look, the intricacies of the design that appeal to their
senses. They are also likely to pursue this aesthetic across categories unlike
a connoisseur. <o:p></o:p></span><br />
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">It is the creativity and the uniqueness of an item that
denotes the value to the aesthetes, and they are willing to shell out if that
object catches the eye. It is not about the intrinsic value or brand value, it
is about just aesthetics. </span><span style="font-family: Garamond, serif; font-size: 14pt; line-height: 115%;">To tap them, luxury brands need to showcase more
distinctive and unique designs.</span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">The most intriguing part is that the experientialist
consumer may well be an aesthete when it comes to apparel and accessories,
while a connoisseur in art may be a flaunter when it comes to automobiles or
his home. Indian luxury consumers are still evolving and many of them are not
at a stage where their lives are only dominated by luxury brands. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Built in rationality and conservatism still dominates our
minds so one toe may be dipped in luxury, the other may be in a pool of “value
for money”.<o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Yes, it happens only in India. <o:p></o:p></span></div>
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<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;">Let your quest for luxury continue. <o:p></o:p></span><br />
<span style="font-family: "Garamond","serif"; font-size: 14.0pt; line-height: 115%;"><br /></span><span style="font-family: Garamond, serif;"><span style="font-size: 19px; line-height: 21.466665267944336px;"><a href="http://retail.economictimes.indiatimes.com/blog/The-Great-Indian-luxury-consumer-decoded/68">http://retail.economictimes.indiatimes.com/blog/The-Great-Indian-luxury-consumer-decoded/68</a></span></span></div>
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Dr. Mahul Brahmahttp://www.blogger.com/profile/09734129902665300041noreply@blogger.com0