Quirky and subtle are what the moneyed elites are going for this season, Jaideep Sippy writes Now that most global luxury brands (across categories) have come to India, and some have even returned home, their emblems are a common sight. Birkin’s, the H belt, pieces from the Panthère collection or the latest Bulgari Serpenti edition, luxury cars from the big three German giants and hypercars from Italian makers are now an everyday urban reality. I must add here that a friend in the business jokingly calls the Mercedes S Class ‘the Innova of the luxury car world — you just have to have one’, knowing that we both acknowledge that the S Class is an all-round fabulous car that owes its must-have status to its enduring image of luxury, safety and reliability. So, after you have bought the semi garish, and hopefully some very garish toys that luxury brands have to offer, what next? For me, luxury, like life, is an ever evolving concept. It has grown to mean freedom — of choice, expression, and to pursue passions. So naturally, I’m always happy to hear about the newest flavour in town. The two flavours that caught my eye are from very different categories, but share a common thread in their subtlety — while I’m thrilled to see the many fine tea salons that are cropping up in the metros and serving superb global teas, tea is not what I’m referring to here. My first brush with subtlety was about a decade ago when most Louis Vuitton customers only wanted the large handbags and leather goods with prominent logos, leaving only a few to buy small leather goods, because ‘nobody looks at what’s inside your handbag’. In recent conversations with a few luxury furniture and interior brands, and with Mumbai-based luxury architect Zaki Shaikh of Parthenon Architects, one gathers that there’s a lot happening in their space. As we already know, people aren’t lapping up all the luxury apartments that are in various stages of construction as most expect the market to correct even further over the next year or two. Instead, they are investing their money, passion and know-how in redecorating their primary homes and offices with budgets that were previously unheard of. With Rs 15,000 to Rs 35,000 per sq. ft being spent just on interiors (i.e., upwards of Rs 3 crore for a 2,000 sq. ft apartment), which in some cases go as high as 20-30 per cent of the value of the property, it is a bit eye-popping for refurbishments, especially if you are doing this every five to six years. “My customers no longer want just the most expensive, or the latest models from big luxury houses; they want things that have a story behind them, and are more than willing to pay for them”, says Shaikh. To cater to this league of customers, Shaikh has been exploring agent rights to some truly unique articles and his latest is Tredici Interiors that distributes the Italian Verde Profilo’s patented ‘Moss Wall’. This is a new frontier in what is possible with green indoors, requiring zero maintenance and offering limitless creativity. Moss wall is natural lichen that is freeze dried and processed using patented technology to create a product that is very versatile for use in all indoor environments (but requires a minimum of 40-50 per cent relative humidity). It’s available in over 20 colours, although the many shades of green are the most popular, and at approximately Rs 2,750 per sq. ft, they are already adorning many homes in the country and quickly creeping into conference rooms in offices due to their sound absorbent qualities. I remember a time in the not-so-distant past when the advertisements on local television were for products that removed moss from walls; so adorning them in these magical colours is now reverse engineering! Moving on to a totally different idea, Lamborghini has an experience division called ‘Accademia’, which literally means school. Born out of passion very much like its cars, Lamborghini encourages enthusiasts to attend a strictly paid-for event (approximately €5,000-7,000 airfare, for a day) in an exotic part of the world where professional drivers show you how to push these cars to their limit so you can experience the heart of these ‘strong like-a-bull’ machines. More interestingly, they had organised a racing event a few years ago on a frozen lake in Mongolia. Ferrari, Porsche and others also offer similar experiences, but the drama of the freezing depths in Mongolia warranted a mention. Only a handful of Indians have attended this so far, but I have a feeling that this is going to catch on as Lamborghini cars gain popularity. Customers have begun to opt for ‘ad personam’ or personalised cars. I look forward to seeing what personalisation people opt for since the cars come pretty crazily configured to begin with. Frank Sinatra apparently had said, ‘You buy a Ferrari when you want to be someone, you buy a Lamborghini when you are someone’. While this sounds obviously relevant to the Lamborghini example, to me it’s also a sign of changing times when trends emerge amongst the millions of luxury consumers in the country. The trends reflect the maturity (or the boredom) of the early adopters and the waning of the fickleness in perception of the majority consumers. I refer to one last joke in the luxury business: the brute vehicle ‘Hummer’ was a fashionable and perfectly acceptable emblem of luxury consumption in the metros, until it also became very fashionable in Phagwara and other small towns in Punjab, at which point it went out of fashion for most. So as an observer of luxury, I’m happy to see trends emerge that are more subtle and hopefully long-lasting, even if it’s only my point of view. The author is a food & wellness entrepreneur, having previously held senior positions at Louis Vuitton, Gucci & BJets (This story was published in BW | Businessworld Issue Dated 16-11-2015)
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Buyers of luxury products in India are looking for outstanding quality and designBy Smita TripathiNicolas Luc Villeroy, 54, has been head of the Tableware Division at Villeroy & Boch since 2005, and was appointed to the Management Board in May 2012. His responsibilities have included strengthening sales channels with trading partners and consumers. He has successfully driven the development of gift collections for the growth markets of Russia, Middle East and China. Set up in 1748, Villeroy & Boch is a premium tableware brand that also has bathroom and tile divisions. In India it is a recent entrant, having set up its first store in 2013. Villeroy, a descendant of the founder, discusses the importance of the Indian market, changing tastes in luxury, etc. Excerpts:Q. How important is India for Villeroy & Boch?India is a very interesting market within the emerging economies and due to its huge size and social structure a challenge, no doubt, but we are set up well in the country and we do believe in our plans and in achieving our goals very strongly. For Villeroy & Boch, India is a relatively new market as we opened our first shop with our partner Genesis Luxury in 2013, and the results are very encouraging right now. In total we have four shops in Mumbai, Kolkata, Bangalore and Delhi and two are planned for 2016.Q. FDI in single-brand retail outlets is now allowed, but you still decided to enter India through a joint venture with Genesis Luxury. Why?India is an important market for Villeroy & Boch with a huge size, a rich culture and a complex social and economic structure. When we decided to enter the market with our tableware, the best way to go was to cooperate with Genesis who knows the market very well, and brings valued experience in the field of premium and luxury brands into our partnership. As Genesis Luxury Fashion is one of the most successful luxury operators in India and already cooperates with many premium and luxury brands, the joint venture enables us to extend our local presence. Golden Glow: The Bone Porcelain Samarkand collection was developed in keeping with the opulent colours and classic gold ornamentation of the oriental traditionQ. What is the inspiration behind most of the tableware collection? Is there any India-inspired range in the Villeroy & Boch tableware collection?Villeroy & Boch is a brand with a rich history since 1748 and has got its own emotional power and a very unique style. Our products present a convincing combination of tradition and modernity, industry, and culture which is significant for the brand. As a premium provider for tableware, we have to consider contemporary trends because they reflect on consumer demands. Our Premium Bone Porcelain Samarkand for example, was developed in keeping with the opulent colours and classic gold ornamentation of the oriental tradition. It is particularly appreciated by those for whom traditional values and exquisite products are important. The demand and taste of Indian consumer is very discerning. They are looking for our premium collections — not just for our porcelain products, but also the stemware and accessories for example. Villeroy & Boch, with its positioning of a European premium lifestyle brand, has the required assortment to meet these sophisticated needs. And yes, we also plan to launch a first India-inspired piece soon, which is a platter featuring Lakshmi and Ganesha.Q. What are the major hurdles you face in India?Initially one of the bigger hurdles Villeroy & Boch had to face was the bureaucracy for creating a joint venture in India, but now we have successfully managed this, so this is behind us. Now Villeroy & Boch is faced with the challenge of transporting products and overcoming long distances in such a geographically large country like India.Q. What’s the ratio between institutional and retail sales in India?Unlike in Europe, the institutional sales in India come through the retail shops, which is quite unusual for Villeroy & Boch. Villeroy & Boch is strongly represented with the retail segment in India, but also the hospitality business is important and growing for the brand.Q. How does Villeroy & Boch tableware stand out in comparison to the competition?The Indian market for luxury products has been growing continuously in recent years. We believe in the Indian market for premium and luxurious products and we aim to become the first choice when it comes to premium and luxury products for the consumer’s table and home interior. As for competition, there are rarely any strong competitors for Villeroy & Boch despite the colonial heritage. Villeroy & Boch is the only brand having the most points of sale and our strength is our design, heritage and the large offering to really satisfy all kinds of different tastes, gifting and personal needs.Q. How is the Indian luxury consumer different from your customer in, say, Europe or the US?Indian consumers are very gift-motivated — very understandable in regards to weddings still being such an important occasion for quality gifting, as well as wonderful festivals such as Diwali. As a premium brand we offer premium packaging as well as a very high service level, which is highly valued in India. Villeroy & Boch designs reflect their European roots with a contemporary touchQ. You were integral to the brand’s expansion in France and Asia. Can you share some of your observations of how homeowners in Europe and Asia view tableware? Are they similar or different in taste?I would say there are both similarities and differences; it really depends on the countries. There is not “the” European or “the” Asian taste or habit. But in general we try to cater to different tastes.The segmentation of the Villeroy & Boch tableware range into three different lifestyles was very important to directly address the relevant target group in each area. “Metropolitan” is directed at the target groups that prefer a modern, purist environment. “Classic” comprises products for people who want to surround themselves with timelessly elegant furnishings oriented towards traditional values. “Country” offers typical country-house-style products.In both divisions, tableware and bath, we offer the original Villeroy & Boch designs worldwide. Our consumers expect the “original”, representing our premium brand. However, modern design is international and our designs do work worldwide. They reflect the signature of our European roots but are interpreted in a contemporary, cosmopolitan way and they can be well included in different interior styles around the globe. Villeroy & Boch is an international brand; hence, original V&B design is targeted at the global market needs, which also comprises the Asian lifestyle.Q. Do you think the concept of luxury has changed over the years? What are the new parameters?Over a very long period luxury meant nothing but rarity that was reserved for a “happy few” like kings, maharajahs, etc. Nowadays, many luxury brands are able to sell their products to a much larger base of customers. The challenge is to keep the right balance between rarity and ubiquity — or offering very special services like ways of customisation which makes the product then truly personal and individual. For me, rarity is still the main criterion for luxury, and my personal luxury is to spend quality time with my wife and children.Q. Do you believe that social media and an online site play a huge role in attracting young consumers? Are you shifting your marketing focus to include online platforms?Yes, we believe that social media and online are already very important channels that are used by not only young people, but of course by them in particular.The Villeroy & Boch Fanpage on Facebook and other channels like Twitter, Pinterest and Instagram are for example handled by a professional team at Villeroy & Boch since last year. We set up special online teams for these topics like e-commerce, social media and online in general as these fields are constantly growing and getting more and more important to attract, to bond existing and to win new customers. Our marketing teams who so far focused on printing brochures and more classical instruments also think “online” today.Q. What do you make of the Indian market in terms of tastes, pricing and growth?Well, ‘high’ is a relative term. The Indian consumer that we attract is sophisticated and looking for outstanding (European) quality and design. In general we offer more decorated premium and luxurious collections of our top range assortment in India than classic white ones.Regarding the pricing I would like to mention that we are a European premium brand that demands high standards of quality and design - both of the products, the packaging and also the presentation at the POS. All this plus the fact that our tabletop collections are produced in Germany and have to be shipped and imported to India is of course also reflected in the price that ranges in the upper segment.Villeroy & Boch has a good footprint in metropolises like Delhi and Mumbai. For the year 2016 Villeroy & Boch plans to extend our local presence with two more stores, possibly in cities such as Chennai, Chandigarh or Pune.(This story was published in BW | Businessworld Issue Dated 16-11-2015)
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While the sales and shopping season in India is at its peak, shoppers globally are gearing up to transition into the ‘holiday shopping’ mode this year end. As a result, Indian merchants who have made it big by exporting locally manufactured products are set to sell much more towards the end of 2015, than any other time of the year. On the cusp of the biggest shopping season of the year, there is no better time than now for retailers to take stock of what influences existing and new customers when they search and shop for products. If last year’s holiday sales metrics are any indication, it is also the perfect time to make your ecommerce shopping experience more streamlined. According to the National Retail Federation(US), non-store holiday sales (which include online and e-commerce) grew 6.8 percent to $101.9 billion in 2014. Here are four areas retailers should focus on to make online customer shopping experiences “frictionless,” or effortless – leading to higher conversion rates and customer retention: Holiday Shopping on the Go Making it possible for your customers to purchase on their mobile devices is a great first step, but retailers need to think beyond that to truly compete during the holidays. With the proliferation of mobile commerce, merchants need think “mobile first” – as in, designing the entire customer experience with mobile top of mind. Successful online retailers provide their customers with seamless shopping experiences on mobile, cutting out the need to enter in a username, password and other details that might be a barrier to purchasing. Provide Peace of MindWhen making purchases online and on mobile devices this holiday season, shoppers expect that their personal data will remain secure. Security is an essential underlying foundation of successful online retail. Be sure to offer time-tested payment processing options that give customers peace of mind when they shop, knowing that they’ll be protected by best-in-class fraud prevention and transaction monitoring. With known and trusted companies such as PayPal, retailers know that they’re offering customers top-rate buyer protection. This includes reimbursing customers with the full purchase price, plus any original shipping costs if something goes wrong with the order – and buyers have up to 180 days to file a dispute. This layer of security and protection gives customers the confidence they need to complete a purchase. Simplify the Shopping Experience at CheckoutAnyone who sells online knows that shopping-cart abandonment is a common problem, leading to lower conversion rates. Some potential shoppers decide against buying because they don’t have financing options readily available, and some simply give up on checkout because entering the data required to complete a purchase is too lengthy or complex. When it comes to checkout, convenience is paramount to conversion rates. Merchants should also consider eliminating the need for customers to enter credit card numbers and other payment information – like shipping and billing addresses – at checkout. Stored payment information is one reason that transactions processed through PayPal have a 70 percent higher checkout conversion rate than credit card-only checkouts. Provide Shopping Flexibility with “BORIS” and “BOPIS”Many consumers find themselves in a time crunch during holiday shopping season, which can make it stressful. Providing options like “Buy Online; Return in Store” (BORIS) and “Buy Online; Pick up In Store” (BOPIS) gives customers flexibility in terms of purchasing and returning, catering to their specific needs. Recently, the Indian e-commerce community is starting to debate about the importance of the omnichannel model of e-commerce. While BORIS and BOPIS can present new challenges in terms of supply chain management (as orders can be fulfilled from different stashes of inventory), flexibility in your inventory systems is critical to scaling it successfully. Ring in the New Year with Bigger SalesWhile mobile, security, checkout and shopping flexibility should be a focus for retailers year-round, competing for customers and sales during the holidays is particularly important -- giving all merchants cause for reevaluating their retail strategy and taking a look at what could be improved to make sales. What steps retailers take now to prep for the holiday season will help them grow throughout the year. Keep these four essential areas in mind to make the entire purchase experience seamless for your customers. By PayPal India
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CH UnnikrishnanFinally, the public concern on the mushrooming online pharmacy trade has taken a legal course. As Indian Express reported, a public interest litigation (PIL) has been filed at the Bombay High Court by a college lecturer from Mumbai on Wednesday (28 October), seeking a stay on such trade. The PIL seeking a stay on illegal online delivery of Schedule “H” drugs (medicines to be sold under medical prescription) by online pharmacies without prescription or cash memos, has alleged that these websites are ignoring provisions of law supposed to be followed to run a pharmacy business.BW Businessworld had last week published a column,, cautioning about the dangers of the now proliferating online trade in the Indian pharmacy space after a government’s alleged move to formalise them. Government of India had recently set up a committee to look at the pros and cons of online pharmacies. C H UnnikrishnanWhile selling Schedule H and X (to be sold and used under medical supervision) medicines by unlicensed pharmacies not only violates the existing Drugs and Cosmetics Act of the country leading to abuse of drugs, it will also likely increase the production and supply of spurious and counterfeit products. As the Thursday (October 29) media report says, Mayuri Patil of the SK Sommaiya College of Commerce, in her petition filed through advocate Allari Jathar, has given a list of schedule H medicines that come with a warning: “To be sold by retail on the prescription of a registered medical practitioner only.” The PIL has mentioned the names of several websites, mainly operating from outside India and pharmacies where such drugs are available. It also reasons the provisions made under various laws are not observed by these websites.According to Rule 61 of the Drugs and Cosmetics Rules, 1945, the medicine sales are permitted only through a licensed medical store and the place the drugs are stored should also possess a valid license as it enables inspection by drug regulators for ensuring authenticity and quality of medicines sold in the country.According the report, the PIL says, “It is crystal clear that drugs, of any category, cannot be sold without license under the rules,” citing the rules dealing with cash memo, prescription and other particulars. The petitioner has also sought the government or the court to set up a committee to list such all such portals, violating these rules.Although the online medicine trade has been there for sometime operated by websites, whose servers are based outside the country and the Indian regulators had no provision to act against them, the issue is gathering more attention currently as the booming e-commerce trade in India has jumped into this space.The offline pharmacy trade had early this month raised concerns about the entry of online trade in the country and a possibility of the government allowing them to operate with a regulatory frame work. Even though their concerns were, as one can primarily understand, rooted mainly about the threat of them losing business to the emerging ‘consumer friendly’ online trade, the major risk of allowing the online pharmacies without adequate monitoring system is the likely proliferation of spurious and counterfeit drugs, as monitoring the stock movement could be difficult in this model.Since the issue has been for the first time taken to the court through the PIL, let’s hope the judiciary take an appropriate call.
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Sandeep Bamzai The more things change, the more they remain the same is an adage as old as the English language. With Luddites front and centre of the political spectrum here, it is so true of India. Agreed that right wing economics would trump left leaning socialist welfare economics hands down in a caged match, but this is ephemeral in the present context. The economic model pursued by the BJP since May 26, 2014, and one would be quick to ask what economic model? doesn't exist. It appears to be a wishy washy rehash of the UPA's policies without a single transformative idea in these last 17 months or so. Now, at one level this is scary because it tells you that the jibes of suit boot ki sarkar may actually have done incalculable damage to the psyche of the Modi Government which fell back to the tried and trusted default mechanism of Luddism, something that India can't seem to shake off despite efforts off and on over the years. For the record, Luddites were 19th-century English textile workers (or self-employed weavers who feared the end of their trade) protesting violently against newly developed labour-economizing technologies, primarily between 1811 and 1816. This phase during the industrial revolution came to throw into stark relief a section of the populace which was challenging mechanisation and culminated in a region-wide rebellion in Northwestern England that required a massive deployment of military force to suppress. It is believed that the leader of this rebellion was Ned Ludd, hence Luddism. Sandeep BamzaiNow Luddism is deeply ingrained in the slow moving politicos who inhabit our polity. Given that we are an agrarian economy and an overwhelming majority of the population continues to reside in rural Bharat, our politicians are constantly trying to pander to their needs, whims and fancies, since they form the largest vote bank. While India has changed thanks to rapid urbanisation resulting in a resurgent middle class, it is still a minority as compared to the brute majority who till the land and make a livelihood out of farming. That too is changing due to an ongoing mass migration of unskilled farmers and their family members who are unable to cope with droughts and rain deficits, Tilling the land is no longer an option for children of farmers who believe it is better to seek a living in towns and cities. The brutal cycle has left urban agglomerates unable to cope with the daily mass migration which is leaving civic infrastructure debilitated in its wake. Nehruvian socialism inspired by Fabian thinking being the bedrock of the Indian economic mainframe was taken to a different level by Mrs Indira Gandhi's abrupt left turn where she unleashed nationalisation of banks, insurance companies, oil and gas sector, coal, abolished privy purses during a four year period 1969-1973. In order to take on the old guard within the Congress and establish her own imprimatur she effected dramatic changes. Challenged by the Swatantra Party, the first real threat to the Congress, Mrs Gandhi resorted to a command economy like never before. In 1969, she nationalised 14 banks, sacked finance minister Morarji Desai and won the 1971 elections on the plank of broad basing Bank deposits and making banking accessible to all. After her famous victory in 1971, she proceeded to nationalise coal, steel, copper, refining, cotton textiles, and insurance. It was a clean sweep. When foreign oils threatened not to provide oil during the 1971 war, she nationalised them too. As a messiah of the poor, the slogan of Garibi Hatao also helped enormously. As Ram Guha rightly says, Mrs Gandhi went onto taste Kipling's two impostors - success and failure - in a short span of a decade. Barring P V Narasimha Rao who was brave enough to dismantle the command economy given the twin threat percepts of an acute balance of payments crisis and the end of the Soviet Union as one knew it. He had no choice but to unfetter the economy given that rupee-rouble trade had collapsed, but he did things smartly. In the process, several of Rajiv Gandhi's ideas manifested themselves - a telecom and technology revolution for one. When UPA 2 came back to power with 206 seats, it was convinced in its arrogance of numbers that the rural vote bank was the heart of its enterprise. A massive and unprecedented farm loan waiver in 2008 augmenting this thinking. The European sensibilities of Mrs Sonia Gandhi helped in creating one of the largest safety nets (MNREGA), one that was predicated to setting up a welfare state. The economic of dole began and the tap refused to be shut down leaving a fiscal deficit of unmanageable proportions. Open and naked corruption and the return of a system of redistribution of wealth through discretionary allotments of natural resources as a replacement for the old license permit raj broke the back of the welfare state. Remember that this was the same Congress party which under Rajiv Gandhi and primarily Narasimha Rao had thought differently, the lurking Luddites having been pushed back into the shadows. Then came Modi like a breath of fresh air, talking growth, development and economic prosperity. His lingua franca was one of jobs and employment. People flocked to him in droves, the youth stampeding hoping that the BJP if it came to power would unleash reform like never before. Instead, the Luddites within the saffron network gave us the Cow. Rising intolerance and shrinking space have meant that the plank of growth and development has become secondary, now being held to ransom by the politics of hate. Luddism in the shape of populism has been the single biggest bugbear for India, UPA 2 and now the BJP also inebriated with the arrogance of 282 MPs prisoners of Luddism unable to decide which way to go. The Congress under Rahul Gandhi appears to be stoking the fires of retrograde and regressive thinking, its disposition and outlook controlled by the rural vote bank. The BJP sadly has fallen in the same trap, dry gulched by the magnet of hustings and restrained by its ideological masters - the RSS. Leaving the middle class completely immobilised. Indian polity is a prisoner of Luddism, left or right, it needs someone who can act as a change agent. Between the Congress and a confused BJP is the third force, the real Luddite socialists - a conglomeration of SP, BSP, JD U, TMC and a sprinkling of others. What I describe as the Republic of Kichdi, the most dangerous threat to the economy. India unfortunately is caught between these forces. Devastating its economic paradigm.
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A growing population of the uber rich is infusing money into the overall economyBy Rajesh IyerIn keeping with the general good cheer after the formation of a strong government at the Centre last year, the number of ultra high net-worth individuals (UHNIs) in India is increasing rapidly, which bodes well for the overall economy.According to Kotak Wealth Management’s Top of the Pyramid 2015 report, the number of UHNIs (Rs 250 million onwards) in India is estimated to have grown by 17 per cent in FY15 to 137,100 and their combined net-worth is estimated to have increased to Rs 128 trillion. An increased allocation towards risk assets within their investments reflected the boost in the optimism towards a strong economic recovery.Equity markets in India have been on a roller-coaster ride this year. After reaching all-time highs during March this year, the Sensex and the Nifty have corrected by more than 12 per cent from their peaks on account of global concerns. Prior to last fiscal, the previous five years were a very tough phase for equity investors with markets staying almost flat from their previous peaks of 2008. At the same time, fixed income was offering fairly good returns given the high interest rates, which led to a significant re-allocation from equities to debt in UHNI portfolios.However, since last year, we have seen the risk appetite of Indian UHNIs increasing with a significant rise in equity allocation in their financial portfolios. This increase has been primarily based on expectations that with the government enjoying a strong majority at the Centre, significant reforms will be introduced to bring the economy back on track. The change in debt mutual funds taxation in 2014, where the holding period for long-term capital gains taxation was increased to three years from one year earlier, has also contributed to restricted inflows into debt mutual funds.Within equities, the preferred sectors for investment have been banking and infrastructure. Also, both open-ended and close-ended mid-cap oriented funds have seen large inflows in the past one year, reflecting the increasing comfort with Indian equities. Private equity and venture capital investments have also grown over the past year, where technology (information technology and e-commerce) has been a preferred sector — in line with the overall buzz of e-commerce companies.Another asset class that has seen a reduced allocation in the financial portfolio of the ultra rich is gold. Gold has traditionally been considered a safe haven, providing a hedge against the highly volatile equity markets. With equity markets remaining almost flat from 2008-2013, gold as an asset class had seen a significant interest from the rich. However, with the allocation shifting more towards riskier assets in recent times, the allocation to gold as an investment avenue has also reduced.Physical real estate has traditionally been a favourite amongst the ultra rich. Perceived lower risk than comparable asset classes in the long-run is a big driver of investments in this asset class.According to Top of the Pyramid 2015 report, over 90 per cent of UHNIs have exposure to real estate investment in addition to their primary residences. They also purchase offshore real estate in locations like London, Dubai and Singapore, either to make second homes in cities they frequent or as holiday homes. Although residential real estate remains a favourite amongst UHNIs, higher rental yields associated with commercial real estate has led to an increased interest towards that space also. Recently, there have been concerns raised by several experts that the real estate market in India is over-heated and the prices might see some correction going forward. However, we still haven’t seen a shift from real estate towards equities, which is also probably because of the illiquidity associated with such assets.Another noticeable shift over the past few years has been that a growing number of the ultra rich are now employing the services of professional wealth managers to manage their wealth. UHNIs find it difficult to manage and monitor their investments themselves due to lack of time, and have started appreciating the benefits of managing their investments using a systematic approach, which a professional wealth manager brings to the table.The global concept of ‘family office’ has also picked up pace in India where in addition to managing investments, professional wealth managers also assist large families with their non-investment requirements such as accounting, philanthropy, concierge services and succession planning, among other services.All in all, there is a wave of optimism, and the mood and sentiment of the rich is positive. Increased investment in equities is a good proxy for the rising buoyancy and this is expected to get better in the coming years, once economic growth picks up. Most experts believe that the Indian equity markets are still a good bet from a long-term investment perspective although there might be temporary volatility in the markets on account of certain global risks. However, it is very easy to get carried away when the going is good and go overboard on investment into a particular asset class. Thus, it is always important for investors to select their ‘strategic’ asset allocation across equities, fixed income, real estate and other alternate asset classes based on their risk profile. Investors, who follow a systematic approach to investing, are less likely to be influenced by emotional factors, and hence, are also able to weather the crisis better during turbulent times.The views expressed in the article are personal. The columnist is Head , Investment Advisory Services & Family Office, Kotak Wealth Management(This story was published in BW | Businessworld Issue Dated 16-11-2015)
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Sutanu Guru takes a look at the parallel narratives revolving around India Two completely unrelated stories have hogged a few headlines today. The first continues the frenzy over beef. Apparently, a self-styled protector of Hinduism called Vishnu Gupta whose complaint about beef consumption led the Delhi Police to the door steps of Kerala Bhavan. For passionate Modi critics, this was yet another instance of intolerance, fascism, persecution and majoritarianism being practiced in Modi's India. The irony is: even sane supporters of Prime Minister Modi would agree that his regime has simply not done enough to rein in Hindutva nut cases. The other story was about India jumping 12 places in the Ease of Doing Rankings released by the World Bank for 2016. The irony is: even sane Modi critics admit that a jump of 12 places for an economy the size of India is something the Modi regime should be proud of. Do note: I have carefully used the word sane while describing both Modi supporters and critics. When it comes to Modi, a majority of supporters (Bhakts) and critics (sickulars) actually resort to varying degrees of insanity in their ideological and propaganda wars. Just look at one example; or rather ne recent story to see how far this insanity has gone. About one week ago, The Times of India (and most other media outlets) featured a story with the following headline: "British medical journal Lancet to take Modi to task for ignoring health sector". The Huffington Post had an even more telling headline: "PM Modi has failed India on health: Lancet study". Apparently, the reputed health journal Lancet will release a report on December 11, 2015 that will severely criticize India for failures in the public health arena. In case you missed, the report is supposed to be released on December 11. So why this fuss almost two months in advance? The editor-in-chief of Lancet merrily gave interviews to media outlets to explain how Modi has failed India. In an exclusive interview to Times of India, Horton passed his verdict: "Since Modi has come in, health has completely vanished. India is on the edge. If PM Modi does not tackle health, India's economy combined with rising population is not sustainable." Now Lancet is surely a globally respected journal. But even a senior school kid can figure out that Horton of Lancet is teetering on the verge of insanity by making such ridiculous statements. A serious and credible health professional or policy expert would know that the abysmal state of public health in India is a legacy of six plus decades of neglect. Inefficiency and corruption. Surely, Modi-despite what his phalanx of bhakts think he is capable of-cannot wave a magic wand and solve India's public health crisis in just one year? And to say that "health has vanished since Modi has come in" is either grand standing or an acute case of schizophrenia. I simply don't recall Lancet r its editor-in-chief passing such judgments in the past. Or maybe similar verdicts were passed but ignored by the media. Either ways, we seem to be suffering from collective schizophrenia while dealing with the Modi regime. We are in a classic situation where reality and illusion depend on what narrative you follow. Take one more example. A few days ago, Gen. V. K. Singh, a minister in the Modi cabinet, triggered a huge controversy by making insensitive remarks after two Dalit children were burnt to death near Delhi. Around the same time, the Modi regime announced a decision (largely ignored by the mainstream media) that interviews would no longer be required for category B, C and D jobs in the central government. This has been a Modi promise to eliminate corruption from government recruitments and postings. Modi critics completely ignored this historic decision that would directly affect the lives of millions. They remained focused on the narrative of intolerance and fascism. Modi bhakts used the opportunity to point out yet again how Modi critics were blinded by their hatred towards the Prime Minister. It may sound schizophrenic: but both happen to be right in their own ways. In my opinion, we will know by the end of 2016 if Modi the reformer has won or if the Hindutva nut cases have. But one thing is for sure: as long as the bhakts and sickulars are around, the schizophrenic narrative will continue!
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Tanvi BhattTake a moment to absorb this brand leadership epiphany: A hundred days are a lifetime in the life of a newly elected leader or the president; but a blink and a miss in the lifetime of branding!Some of the most iconic world leaders have achieved in the first 100 days of their presidency what some presidents have not-in their entire term. History celebrates the achievements and the impact thereof, of the Roosevelt presidency, the Reagen presidency and of course the Obama presidency with poetic accolades; the changes they brought into the system within the first 100 days of their presidency are not only remarkable but outright inspirational. That brings us to the second part of this newfound insight-the ephemeral relativity of 100 days in branding: how does one build a brand in 100 days-especially when it takes years or even decades in the world of branding to build a brand that is celebrated for its value, consistency and commitment towards building credibility, reputation and legacy. The most iconic brands of the world right from Coca-cola, GE, IBM, Toyota are atleast a few decades old-if not a century; and the same is true with an obvious variation in the timescale for people brands too! Icons like Jobs, Branson, Musk, Dr Kalam, Tata and Teresa, have become such beloved people brands today because of the three common traits that all iconic brands share: Value, Consistency and Commitment to serve, to change the world-which they personify in every act of reason.Let's converge these 2 seemingly contradictory ideologies to build a new line of thought: I believe that it is possible to build brand leadership for people brands in the first 100 days of their induction into this new way of life. It is possible to inspire, influence and impact a change when people embark upon their journey of brand leadership. It is possible to be Iconic as a leader as well as a thought leader once you commit yourself to change. All you then need is the blue-print to accomplish that! This column aims to serve as the very blue-print you require in the journey of your brand leadership: to evolve your personal brand from being a mere leader to a thought leader and from being a thought leader to an Icon.For the next 10 weeks, we will explore a new dimension of your personal brand. Every week I will offer you 10 steps/tips/insights to start building the brand YOU.Week 1: "Brand Your Authenticity"Authenticity is NOT a buzz word; it is the TRUST word. People will continue to believe and trust in you and your brand promise only when you deliver your value-time and again. And only Authentic brands are equipped to build lasting legacies, because they have nothing to hide-ever. Then there is also the icing of happiness: When you are true to YOU, you evolve into a happier soul. Only when you are able to live a life doing what you really love to do, and manifest the values you hold dear to your heart, your Soul realizes its true destiny. Here are the 10 steps to discover your personal brand's authentic soul;How to use this 'Be Iconic Blueprint': Go ahead and accomplish one step every single day for the next 100 days religiously; when you complete these 100 steps in the next 100 days-you will be surprise at the clarity you have about your life, your happiness, your brand and more importantly how to leverage the true potential of the Brand YOU and #BeIconic!1. Discover/ Re-Discover Your PassionsYou are ONLY able to give your 200% when you love your job/work. Ask yourself the following questions to check if you REALLY do love what you do or discover what you would REALLY love to do:- What would you do for the rest of your life if you win 500 million dollars?- What would you love to do 'forever' if you were blessed with immortality?- What would you like to write a book on-what is your subject matter expertise?- What super-powers/super-skills do you posses that nobody else does?- What Legacy/Change/Impact you like to build/accomplish/create that fills you with happiness and pride?Answer these questions with naked honesty; these answers will help you understand what you really love to do in your life.2. Fall in Love with your Job OR Fall out of LoveNot all of us are blessed to be in the jobs we love; however, there are two options: either we think hard about what aspects of our jobs-'Our Work Passions'- we love to do, and focus on doing more of those OR we balance our life with 'Our Play Passions'-which are non-work related hobbies, activities, adventures that make us happy and religiously indulge in them to de-stress ourselves. Infact, if you do have any other hobbies/skills, expertise which makes you happier than your day job-seriously consider honing them to such an extent that you can simultaneously build a second lucrative career around those. The Indian author Amish, is a classic example of turning your passion (for him, the passion of writing) into a highly profitable career--forsaking a successful existing career in banking!3. Lessons from your PassionsPassions are often your greatest Teachers, well, only because you are being a happy attentive student! Many of our passions can teach us more than a thing or two which we can incorporate into our work life or even life! For e.g.: If you love playing chess, it can teach you to adopt a more strategic mindset and moves while building your business. If you love playing cricket, it teaches you the impact of strategic teamwork in achieving targets. If you love hiking/trekking, it teaches you the importance of perseverance in building your business; ditching your comfort zone to achieve excellence; working with people you can implicitly trust with your business and life, etc. If you haven't indulged into 'passion inspired lessons of life' till date, now will be a good time to think laterally about your existing passions and what you learn from them. The reason for seeking these lessons is when we realize that our passionate pursuits have a deeper impact on our life beyond making us happy-the thrill of indulging in those passions becomes amplified.4. Convert your Passions into Your StrengthsThis one is not a day long adventure folks; you have to commit yourself to a disciplined routine to hone your passions. You can monetize your passions, skills, hobbies, expertise only when you have achieved a certain degree of mastery in them. Devote yourself to your passionate capitalization for 30-60 minutes on a daily basis to witness your passion transform into deep expertise in the subject matter over months. One great way is to break your time commitment into two 30 minute long capsules in a day if dedicating 60 minutes at a stretch is a challenge. Like Malcolm Gladwell advises, Practise your Passion for 10,000 hours to ace your expertise quotient in that subject. Have you started counting your hours yet?5. Flaunt/Celebrate Your PassionsIf you want to do more of something-talk more about it! Simple ain't it? The more you celebrate your love for all things that make you happy you are attracting more opportunities to do more of the same. Especially, if what you do has the potential to help others and adds value in their lives- flaunting what you are good at, via offering self-less value addition to your community is a sure shot way to be recognized as an expert-in-progress in your industry. And when all of it is driven with a goal of happiness and contentment, it doesn't feel like bragging, but definitively feels like branding!6. Know Your Core ValuesYour values are the beliefs, ethics, and morals that you live your life by; they are the calling card of your brand as well as your leadership. Having cognizance of what you will and will NOT do in your life, helps you maneuver through life's crests and troughs. List down all the values you strongly believe in; Ask a friend what he/she believes your values to be and do a quick fact check--are these two lists in sync? Do people know and admire your values? Have you been able to manifest your values effectively? If there is too much disparity, try exploring 'why' with a close group of well wishers and work towards re-aligning your behaviors with your core values. If there isn't much disparity in these 2 lists, then narrow it down to your TOP 3 Values which you will never compromise on-even on gunpoint!7. Grow Your ValuesOur Values evolve with our life; things we valued in childhood may have been replaced or appended with the things we begin to value in the professional world. It's important to keep growing your value system to enrich your brand; it doesn't have to be in your TOP 3 but having a rich set of top 10 values never hurt no one! Everyone aspires for something-at any given point in their life-ask yourself, what brands/people brands inspire me? What do I respect/love about these brands? The answers to these questions constitute your VIP Set- Values-In-Progress Set. Grow your brand with rich values every few years to build a richer Brand YOU legacy for the world.8. Manifest Your Values Be proud of your values, and live them every single day. Values aren't valued much unless you live them and swear by them. Bring a little of your values and beliefs to work every day. In meetings, interviews, projects, targets, celebrations, speeches, writings- at every possible opportunity you get-ensure that you are delivering the best of you underlined with your dearest values for the world to witness, value and applaud! Again, this isn't a one day show-you must build it into your leadership life-style, slow and steady.9. Craft your Brand's Soul StatementYour Values and Passions come together to form the soul of your brand, of you! Select your deepest passion (work/play passion matters naught) and 2 to 3 of your dearest values and craft a YOUnique statement which celebrates the spirit of being YOU: the things that you love to do and things that you value. Use it wisely when they ask you next to 'tell me something about yourself!'10. Be IconicWhat is life without Love, without Values and without a Dream? Remember, some of the most iconic people in the world have dreamt, dared and did whatever it took to lead their passions and live their values as they led the world towards a more meaningful, happier and beautiful tomorrow. Dream of a change, and then be the change: Be Yourself, Be Iconic!The author is founder of Thought Leadership Labs
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