Mad_About_Money_final April 2017 | Page 24

Mad About Money THERE IS A DIFFERENCE BETWEEN ‘BEING RICH’ AND ‘BEING WEALTHY’ THE OTHER DAY I RAN INTO AN OLD FRIEND, WHO COMES FROM INDIA’S ONE OF THE BIGGEST RETAIL CHAINS- BIG BAZAAR. WITH A LOT OF DISMAY, HE TOLD ME THAT THEIR PRIME LOCATION IN SOUTH MUMBAI WAS BEING SHIFTED TO A SUBURBAN AREA, WHILE THE FORMER LOCATION WAS GIVEN AWAY TO THE GLOBAL LIFESTYLE BRAND, H&M. THE IDEA WAS THAT H&M WILL CATER TO UPMARKET CONSUMERS LOCATED IN SOUTH MUMBAI. IT WAS A PREMIUM LUXURY BRAND, DISPLACING A MASS BIG BOX RETAILER, BIG BAZAAR. IT LEFT ME WONDERING ABOUT THE STATUS OF LUXURY GOODS MARKET IN INDIA. ARE THERE ENOUGH LUXURY GOODS CONSUMERS? CONSUMERS BUY FROM H&M BECAUSE OF ITS ‘VALUE’ PROPOSITION OR IS IT BECAUSE THEY WANT TO ‘LOOK RICH’ WITH THE PREMIUM BADGE ASSOCIATED WITH H&M? 24 Ostentatious display of wealth The truth is, Indians love to flaunt their money. They do not shy away from ostentatious display of wealth. Marriages are one such platform where one can witness India’s ramp walk on ‘who is the richest’ show. Well, it’s not such a bad thing. If you got it, you will flaunt it. Who doesn’t want luxury and other shiny things in life? India’s consumption story of luxury goods has changed drastically. There is an increase in appetite for luxury goods amongst consumers. Number of High Net worth Individuals (millionaires) in India have increased and data suggest that luxury market in India has been growing at unprecedented levels (currently valued @$18.5 billion). Strong interest in luxury goods There is a strong interest in luxury goods. The tags have become important for people. H&M stores