Ashish Jagtiani the Radio One RJ feels economic slowdown is a subjective business
Ashish Jagtiani the Radio One RJ feels economic slowdown is a subjective business
We're in the middle of a slowdown, people have stopped spending yet I'm seeing some ads in the papers that freak me out. Fancy cars, luxury apartments, expensive jewellery and even absurdly priced hair products.
|
|
The kharchaa kahaani: In the time of economic meltdown, everybody has their own level of compromise, usually based on net worth
File Pic |
Sure, part of the deal is that this stuff comes on easy loan terms, except maybe the shampoo. Beamers and Mercs are on offer for an EMI of a paltry forty thousand. A Rolls Royce can be had for a Rs 5 lakh pittance of a monthly payment, after you drop pocket change for a Rs 80 lakh down payment.
I've seen ads for a spanking new 7,000-square-foot residence, lavish second homes by the beach and those surreptitious second sale ads for property that make it clear that only people with big budgets need get in touch.
There have been a couple of ads for yachts, bespoke jewellery and unpronounceable hair products.
All of these are things you think about buying when the Sensex is at 20,000 and you've just been paid your biggest bonus ever, not when the market's crashing and employers are figuring out ways to pay you less.
I've been scratching my head wondering why this phenomenon even happens, and then it dawned on me. These might be products that mere mortals consider super-luxury, but there is a market for these things from people who think that a Mercedes is a step down.
A Merc is something to get when you're compensating for not buying a Rolls Royce. A Rolls is something to buy as a come down from the private jet you were planning to purchase just before the economy tanked.
Similarly, a two grand shampoo is something the style ladies would buy instead of taking their regular haircut trip to London and Alibag beachside properties get bought in place of the chateau in France.
Dealing with the slowdown can be a subjective business. Everybody has their own level of compromise, usually based on net worth.
It's time for me to go renew my train pass, I'll buy the Civic later.
