We consulted with designers to gather their insights on Kamath’s remarks and to evaluate the advantages and disadvantages of investing in luxury brands.
Nikhil Kamath, co-founder of Zerodha, recently shared his decision to abstain from purchasing items from luxury brands, citing their “arrogant” marketing strategy. Kamath discussed this on a recent episode of his podcast, ‘WTF is with Nikhil Kamath,’ where he delved into the intricacies of building a fashion brand.
He explained that he has opted out of buying from ultra-luxury brands because their marketing approach seems designed to provoke reactions before making a purchase. He emphasized that the most concerning aspect is visiting a store where products are marked up significantly and customers are told they can’t purchase until they’ve built a relationship or navigated numerous obstacles.
Kamath noted that these brands have the capacity to produce more products but rely on an arrogant strategy that has proven successful, and he believes people should be aware of this approach.
We engaged with designers to gauge their response to Kamath’s statement while examining the advantages and disadvantages of buying from luxury brands.
According to Renesa Rastogi, designer at Label RCKC Aurum, Kamath’s stance reflects a growing sentiment among consumers reevaluating their choices. She emphasized that it’s a matter of personal values, and while some may appreciate his decision, others still value luxury brands for their quality and exclusivity.
Shilpi Gupta, a fashion designer, acknowledged that luxury brands employ such marketing strategies but suggested that these brands are unlikely to alter their approach to customer engagement. She advised consumers to explore reputable and long-lasting substitute brands within their budget range.
Here are the pros of purchasing from luxury fashion brands, as per the experts:
1. High-quality materials and craftsmanship: Luxury brands typically use premium materials and exhibit excellent craftsmanship.
2. Unique design and limited editions: Luxury brands offer exclusive and unique designs.
3. Resale value: Some luxury items retain their value over time, signifying a statement of refinement.
However, there are cons:
1. Rapid depreciation: Many luxury goods depreciate quickly after minimal use.
2. Ethical concerns: Some luxury brands face criticism for their labour practices and environmental impact.
Alternatives include:
1. Exploring ethical luxury brands that prioritize sustainability and fair labour practices.
2. Looking for non-luxury brands that offer high-quality products without the premium price tag.
3. Evaluating personal values associated with luxury brands and considering similar quality and designs available elsewhere.