Is luxury retailing/ Luxury goods Recession Proof?

Dear Friends,

I am often asked this questions in various forums, networking events " Is Luxury retailing/ luxury goods recession proof ?"

Before I comment or share my views on this question, its important to understand what makes these luxury brands so special..

Brands like Ferrari, Lamborghini, Patek phillips, Rolex, Gucci, Loewe, Hermes evoke a certain kind of imagery in our minds which is aspirational & provides attitudinal & lifestyle experiences.

So what is Luxury?

I would like to define Luxury as "Business of selling dreams". It's a mindset.

"Why would i need to know as to how watch industry is doing, i am in luxury business" CEO of a very famous luxury watch brand once quipped....

This statement according to me says everything about Luxury brands and this statement holds so true in current times of economic challenges.

so what makes Luxury brands so different from other  brands....

When it comes to luxury, being unique is what counts, not any comparison with a competitor.

Luxury is the expression of a taste, of a creative identity; luxury makes the bold statement “this is what I am,” not “that depends”– which is what positioning implies.

Heritage associated with luxury brand plays a very important role i.e. Louis Vuitton.

Aspirations, dreams, attitudinal kind of brand imagery, are some of the elements of playground for Luxury brands.

Believe me or not but yes Luxury brands are not bogged down by any economic downward trends infact, they are least impacted as well.

Connoisseurs of these brands remains brand loyal and help these brands to remain evergreen & everlasting.

When Mass-tige & hi-street brands are hitting the walls, the world's most luxurious brands are reporting blooming sales spikes.

There are few brands that i would like to quote are coming from unconventional countries (which were earlier european dominated and making waves... one of such brand is Shangai Tang from China.(later acquired by Richemont group)

It is indeed every marketeer or retailer's dream to make his/her brand as cult as Hermes, LV, Rolex to name a few which could stand the toughest of times that any economist could ever predict.

Main thing to remember..."Stay true to your brand promise" while embarking on luxury business. 

I would like to conclude with beautiful quote from one of my favorite designer..

chao..

Ritesh Mohan

Most memorable advertisements in Indian market that still holds its key Brand Promise & relevance.

 Dear friends,

As I embark on writing my first blog and let me give you a brief about my professional life so far... I am a Retail professional having over 17 years of work experience in Branding, Advertising and Retail sectors. I would like to share my wisdom with all of my friends in my blog i.e. fascinatingretail.blogspot.com

My first blog is dedicated to Advertising and marketing communications done by some of Indian brands that are still relevant and has helped their brand owners create an empire. These are classic brand cases and would take my readers ( most of Indian countrymen) into nostalgic journey.

a) Amul :  The evergreen  Amul girl character used so efficiently in advertising that it still remains
fresh and relevant fulfilling the brand promise. A classic example of making a brand stay relevant and long lived in consumer's minds.

Brand Promise of the brand is Honesty, credibility built by offering best products to its consumers.

A Brand that is owned by the milk producers of Gujarat is an example as to how an entrepreneurial spirit of farmers grow to become world's largest coop federation serving millions of consumers across the world. Amul girl and its punchier & humor & catchy advertisements based on current affairs makes the brand stay relevant even in today's times.

 

Hats off to wonderful creative team Amul creative campaigns

B) Fevicol : Another classic example of how to keep brand alive for over 35 years, brand owned by Pidilite Industries has created an empire with its brand " Fevicol". Kudos to its advertising agency O&M india. I am great admirer of Piyush Pandey and his work.

Brand Promise: A bond built to last forever.

Who can forget this commercial from Fevicol which is now a master piece in Indian advertising.

Conclusion: First principle of Brand building is " stay true to your DNA" i.e. promise you want your brand to make to its users.

I wish all upcoming brand managers all the very best in making their brand stay relevant for ages.

Love to all budding marketeers,

Ritesh Mohan