Why Nikhil Kamath Quit Buying Luxury Brands
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- Опубліковано 30 чер 2024
- Watch the full episode - • Ep #11 | WTF Goes into...
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Nikhil Kamath - Co-founder of Zerodha, True Beacon and Gruhas
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I think if you buy a 700-800 rs tshirt rather than 200 rs tshirt quality will be significantly better. a 2500 rs t-shirt will be slightly better than 700 rs t-shirt but beyond that the difference is negligible. so the middle range is probably the best bang for buck. Spending 30k on a white t-shirt even if you're a billionaire seems absurd lol
Yeahhh. I agree with that
Just for the tshirt example, I feel a Rs 800 Jockey tshirt is the best bang for the buck for me. It's quality is decent enough and last more than 3-4 years. Anything above that, as you mentioned is complete waste.
@@bandyo agreed. i love jockey polo tshirts. they're affordable and very smooth fabric.
I don't want to spoil the conversation have you asked some small-scale business what the maximum cost of manufacturing the best quality cloth in India that answer would be 300 (labour and all other expense included with a profit margin of 30-50% for the manufacturer)
People should stop buying a kurta worth of lakhs !!
Nikhil is bang on. Brand should not define a person. Once a person is successful, brands mean nothing. Sadly unsuccessful people spend on brands to show to the world that they are successful.
I love how Raj Shamani says things based on 'his experience among his friends' in front of legends. These legends won't say anything without any substantial data proof.
ofc his opinions depend on his friend circle. Didn't relate or agree at all but people are there who don't need to care about money and all about show off
I do relate to that as I am an IT employee and I see so almost every person in my knowledge bought sneakers and iPhone on credit though i cannot comment on behalf of raj but it is definitely a case
lol
Bro is naming 20 people as his case study in a country of almost 2 billion
Raj needs to change his social circles xD
A decent fashion brand did an experiment recently and posted it on youtube.
They remodeled their showroom in a mall and renamed it with a classy Italian name. Further they priced their products in the range of luxury brands and invited fashion designers, models and wealthy people for launch of this store. People bought those costly stuff and were going gaga over it without knowing it's a product of a mid segment brand priced as a luxury brand.
To Conclude after a point People spend extravagantly on a product not because of its quality but because of its brand value and a status symbol.
Which brand?
Payless posing as plassey
Agree.. Basically this is the mindset of people in general.. Brand conscious with hidden urge to show it off.. To look different and unique,, although we are all crawling on a planet 😂
Well said
Which brand
love how nikhil has started doing this beautiful podcasts ,and the best thing is , he is already successful , so he doesnt have to prove anything in the podcasting world , and therefore his approach taken in simple , elegant and just what is required. always looking forward to the new one
What Raj Shamani said is true. Lots of friends saving to buy luxury products 😅
This is golden channel. Think about it. What NEED does it have for Nikhil Kamath to create and run a channel? He doesn't need any money from any social media. It's a real service for masses!
Think about the time he spends on this and that's gold! If you want a mentor, they charge on hourly basis!
Thanks for this channel and thr main channel as well!!
I love his content and it does provide tremendous value, still No offense but this is a pretty naive comment.
👍👍
Very insightful video on consumer behaviour and buying pattern. Believe USP of ultra luxury brands is creating scarcity and vanity in the minds of consumers and then selling it at a premium. Best thing is that even the end user feels good after buying it as it will satisfy his/her ego and to a small extent sense of achievement and class within society
Very good. Very rightway to guide young generation. Pl. Continue with this. God bless you.
Women peer pressure is different, so not surprised that bags are not a thing yet. Raj is right. “Buying into having arrived” is a urgency that makes the new generation spend ahead of their preparedness to sustain that life style
Awesome work! Discussions with opinions and data make a difference.
The customers of these luxury brands probably know that the markup is 500-1000%, but they still buy just because of reputation. How do y'all think this can be changed ? One person at a time?
Yes and no. With awareness, the quality seeking customers will gradually look elsewhere. But the ones who seek validation, the nouveau rich, they will continue to buy from these companies.
There is category of people who buy it exactly because its expensive can't be changed
Not going to be changed. Exclusivity is one aspect. Watches are a good example of this. Look at Richard Mille watches, they cost $1-10 million dollars so very few people can afford it. As long as exclusivity is there, it will last.
shaming them for being gullible could be an effective strategy. It could also backfire and some people might double down and by more.
Raj was right my friend was saving for sunglasses worth 20k
Very simple piece of wisdom but still not many people knows.
Nikhil, you are such a humble person. I searched for your videos just to hear you speak. I was expecting a businessman tone, but was pleasantly surprised to hear a soft spoken person with a bigger vision, trying to break the false stereotypes. Way to go 😊!!
Being a Guy from Brand Marketing, I can say that Raj only has surface knowledge of marketing and he doesn't deeply understand how marketing works. The thing, he's talking about is, Aspirational Brand Building where money remains our last resort.
Nikhil the insights given by your channel are resourceful plus I like your humble nature I believe it will take you too places and help you sustain your email
Knowledge is power. This strikes me will change my way of thinking.
It’s important to guide your followers and people whom you might end up influencing one way or other. Keep doing the good job. Most people will follow your actions rather than words❤❤.
When you become a brand...you dont buy brands
I like the characteristic you quoted "arrogance" for lux brands like Hermes, LV etc.
Awsome..
Many thing to learn
This Raj shamani guy doesn't know that much but in his head he thinks that he has cracked some code or something like that.
He has made connections it’s the rich and influential and that matters . He hasn’t done anything worthwhile other than talking online with people.
This is so insightful ❤
Interesting episodes. Good to know the 70% credit fact on iphones. Now, I know why so many EMI options are popping up on buying these things.
Part of the reason is the discounts you get with credit options, you may have the money, but if you can save 2-3k by using a credit card why wouldn't you do it?
They are getting people into the habit of piling on emi after emi thinking they are saving cause spending 1L in a sale sounds a lot but starting 3 emis at "just" 20k a month doesn't do as much to most people apparently.
I really agree with raj lot of people buy branded products just to show off because fashion is a thing which make people confident and the most important it give first impression to the other person in that way gen z think and if you see lot of people buy expensive goods in emi or to save their money or to borrow someone and its happineing in india ....just take a example IPHONE people are buying in EMI even most of them are students or some of them can't afford but they still buying because its showing off product its a luxury thing you are holding in your hand give other people your impression.
When that raj guy says our generation saves up for gucci bags.
I'm like 'wtf'
People do people do my friend up scale your circle and you’ll get it
Thank a lot Nikhil...
yeah. of course. absolutely
awesome insights
Doing great job
Sad reality of today's time. And thats true for 90% of the D2C brands. How are we tricked to buy something we don't need at all.
Interesting evolution in spending
Raj has kept forward a point that the rich folks are not that much admitting to but believe me thats the situation of the middle class of tier 1 and tier 2 cities . they will fucking save months of money and spend on gifting either theirselves some luxury item or gifting their partners the items. this can be understood from the classic iphone example that a significant percent of iphones are purchased on EMI. This really shows that brands do target the people who cannot afford those item. Thank god i have never done such thing. I spend wisely. and try to make millions of memories out of it.
It is his money and his choice . Why waste time comparing. Life is short . If you desire something and if it’s within your budget just go and buy it. Don’t think too much..
So its more than brand name, it earns respect, creates fear, it will neutralize your counter part if they try to intimidate you. In my city, police wont catch a bmw or a merc etc doing a major traffic violation even if they do it in front of a cop. Bouncers at A lister bars identify brands and give you access to premium locations, based on your car, you get premium parking, valet access at Las Vegas. Moreover with a ultra luxury product you are not likely to meet another person owning same product, many ppl hate to see this happen. You can auction your products after 10 yrs or even later and get ROI of at least 1.5x. Ex: 20 yr old Toyota Supra sells at 2x or more. Luxury brands have worldwide presence and may sometimes be conversation starters between two unknown peoples of different nationals.
Which watch Raj shamani is wearing? Is that Cartier...?
We manufacture t-shirts and hoodies and our quality is on par with quality brands like Nike, adidas, and others. However, our price is pretty low than these brands. We are dependent mostly on facebook and instgram but we do not spend a lot of money on marketing as ours is a startup which is 5 year old. And I can tell you, the same product you give 10k is same as at 1200-2000 bracket so don't be fooled and be like Nikhil Kamath.
I am impressed, you are really growing, no u have grown. Happy to know your maturity. U need not show off.
So as Nikhil said that build a relationship and wait to get a product even though they can build 100 more of it so if they do that it loses its value if they produce n times its like saying print as much money as much you want. So it loses its value and then after waiting to get something you value it and that’s what these brands try to make you feel.
The fact that you are saving to buy something with no intrinsic value and the only purpose of that thing being showing how much money you have is just pure IRONY.
I buy formals from that complete man shop not because it’s a complete man shop rather as they have a good quality and I’ve been assured of it for some time
I also admit that i haven’t tried any other brand yet but why should I do that if the price seems justified for the quality it assures. 😇
I don’t have a Porsche or BMW but I have a Himalayan/ Innova (not that costly i know and I’m not claiming it to be a super-bike or supercar) and even after some 5/ 1 year after detailing it and maintaining it to my satisfaction level, I kinda get that smirk od using it (may be fooling myself 😂)
I don’t know but I assume that I’d be the same if I’d own a Porsche one day. 😅
IMO if you’ve followed something by yourself and not because of social media or it’s advertisement, you’ll not regret owning or pursuing it.
Even Apple
LOL, luxury clothes and stuff is one thing but luxury cars are engineered better and have better comfort and safety. These things can even be objectively proven.
Calvin klein boxier briefs is the ultimate marketing strategy .
As Indians we need to stay away from such bogus marketing strategies.
The price that I am willing to pay for a product is the value that I perceive in it. Amout of mark up is immaterial to me. On Team Bhp forum, I see that there is a huge cohort of automobile enthusiasts who pay more for a MB/BMW/AUDI/JAGUAR over a luxurious LEXUS/TOYOTA even though these brands are relatively less reliable and are more expensive to maintain and run. Each brand is aimed at a specific sub set of all the consumers. So be it. Why pass judgement on the brand or its customer?
The perception of value is becoming intangible. Ain't it?
So, what we're saying is that after a point, mark up is just for the intangibles and not something real or physical in the product.
There's no judgment. It's a personal preference (not to buy) because of how the product is being marketed.
"If you don't buy this, you're worthless" is where the problem lies. While it's working, it's not evoking any positive emotions till the sale completes.
Won’t the special white powder you use be considered a luxury product?
Luxury is a perception. There is no way to measure luxury because it keeps varying depending on how big an ego a person has. For example, Longines is a luxury brand in watches and is an aspirational brand for watch enthusiasts. But for a connoisseur of watches, Longines is your casual brand that isn’t the same league as an AP or VC.
Eye opening bro I am change!
Who is this Raj guy? Why so much footage to him? He was speaking as if he in an MBA entrance group discussion.
The ugly truth of advertising 💔
Would love to see a talk with PeepalFarms robin sharma
Nice discussion sir
2:22 cant say the same for car enthusiasts
In Case of Big Bazar, i would say the quality, the quality they provided for the price was amazing, smart bazar is not giving that result.
Raj is the elaichi in the biriyani here.
who are persons sitting with him? what are their names?
Nikhil and Nithin should focus on their Kite app infra more and on podcase and body building less.
Basically there us product for every price bracket and luxury brand is for people with a absurd amount of money
Loving every podcastI've seen so far from Nikhil but this one is about such a common and outdated topic, being discussed
by such business champs. Its called 'Archetype', and pretty much everyone knows about it.
I feel the crowd you're trying to pull expect more layered, original and uncharted content especially from you.
"Moore's Law" for tshirts.
when you can buy a store why buy a product
So save to thik Hai but please tell me what you guys are drinking with chaknaa
You get what you pay for.. quality, experience differs. There's no escaping that!
Raj and Kishaore speak facts
Please start Hindi podcast also
But why not buy cloth and get it stitched. He can do that.
Sir,if possible kindly make video in Hindi
If you don’t want to spend money give it us
For everything, there is always a sweet spot beyond which it gives diminishing returns on investment.
For example: A road bike can be bought from Decathlon for 30K but it would be terrible to ride
But a Road bike bought from Giant/Canyon etc would cost you around 1.5Lacks that would be great to ride
And then there are bikes upwards of 15Lacks that are best in the world but wont be 10 times better than the 1.5L ones.
Same for phones
A decent phone with okish camera comes at around 15K
One with all loaded features and good camera comes at 30K. And then you have the ones at 1.5Lacks that are the very best.
So I guess what Nikhil here is pointing out makes a lot of sense, there is no need to pay premium for diminished returns. Just get the one that brings the most value.
And I feel most of the Japanese and German brands are good at it. Loads of research and quality checks in place for their products, priced right and very little marketing as the products themselves speak for them. For example, Try to buy a Wallet for yourself. There are three catergory of choices. 1. Low price decent quality: Price point 1k: e.g. Baggit 2. High price great quality: Price point 5k: e.g. Fossil 3. Medium price Great quality: Haans. Price 3K Now I am pretty sure Haans is the least known among these three, but usually that would give you the best bang for buck. There are similar brands in every sector that have great quality products priced right coz they dont put a lot in marketing.
“I don’t have any data but my friends and I think…” hmm
I stopped buying luxury brand
By never buying them from day one
I Guess this manipulation technique works only on people who don't have the money to afford that luxury good or the people who want to showoff because the people who know they can afford it they invest that capital on goods/assests.
Raj is right these brands don’t target people who are rich but those who wanna look rich
Why is he wearing two watches
Yuss me too
Although I agree with his philosophy, that we shouldn’t be buying brands for the sake of their names. His examples are somewhat wrong! Let me explain. Louis Vuitton for example is a very old company established many years ago for making very good leather goods, particularly bags. They have mastered this craft and are frankly one of the best in the industry. They last really long and use some of the best available leather. Similarly other brands make some products that are quite unique to their brand or they are known significantly for. So, if yo do buy a LV bag, say 5-6 years ago for say $1500. The value of that bag today would be MORE, because the same bag retail today would be $2000 or more! So, in theory, if you had taken care of your bag for all these years, you could sell it back for the same price you bought it for or even more! Again, I am not saying these luxury items should be bought for “investment”! No, they are still liabilities not assets, but these items DO HOLD their value! Now on the other hand, going and buying a LV shirt, sunglasses or pant or any other product that this brand puts its name on would be pointless as those are usually manufactured by third party producers and the brands name is just stamped on it!
So be smart, do your research and decide for yourselves, what is worth spending YOUR money on!
Once I went Rado watch showroom in shopping mall, casually I asked wats the cost .then they behaved as if ,this is not your cup of tea .😂😂
Find it so odd that Raj wore a watch for telling time in one hand. A nice little tank. And gizmo on the other to see WhatsApp and heartbeat? Watches should never have softwares. Just takes the fun out of it. But if you’re gonna go that way, why have both? You can still tell time, seems a bit overkill.
The example of BMW is not right here! BMW is more expensive because these cars ARE better tuned and DO give you an excellent driving experience. This is an old car company that has been known to produce very responsive and driver friendly cars! Sure in India they are expensive, but that is because there is a lot of TAX being levied on these foreign car brands. The same car costs atleast 30-40% cheaper in India! It’s the same with the other German brands and the Japanese and Korean brands in India. The argument that if you were alone then you won’t enjoy the car for more than a week is also not valid as we ARE social animals and we will HAVE to interact with other people. So we would still be around other folks by design. Obv, we shouldn’t be buying a Beamer because it’s EXPENSIVE! I agree, any purchase made because WE CAN is always going to not give us long lasting happiness. But if we buy something because we thoroughly enjoy using on a daily basis or as a special treat once a week or whatever and we can AFFORD to buy it. Then why not!?
The Iphone one was true. People do take it on credit for some kind of social stature.
Nikhil has achieved Nirvaana..😂
So the comment that luxury brands dont sell to people who have money, or they are not the TG is not quite right I would say. I am circled with lots of people who have enormous amount of wealth and they covet and are obsessed with luxury brands. Some of the items an upper middle person cant even afford. You need to have considerable amount of money to buy them. LUXURY is sold to people who needs validation or has the desire to show to the world how much they are loaded, and get that validation from others. There are people who dont care about luxury goods and it doesnt matter whether or not they have money or not.
Desire for luxury doesnt have to do with your bank balance.
Raj hiding his Cartier Tank while Nikhil is bashing expensive brands.
It’s virtue signaling, but the hypocrisy is comical.
Deserves 👏🏻👏🏻
I don't mean any harm but I think Ananth has something valuable to share but Raj has found himself in a Group Discussion and doesn't know there are points for "listening" as well. I like the guy but this is a bit disappointing. 3:36 3:59
Bmw is a bmw.. i have it and i feel it
No no its happening " LV LV " , people who earns 30k also into buying LV bag
Moderate to Classic and Classic to super Classic...is the Top of any Product and after that everything is ego massaging or ego hurt is used as marketing and people who had money fall in trap...quality can't be upgraded so after some stage so they fool people by marketing or brand ambesedor. It's making self happy thinking I am great or diff6than others. Mental sickness. Most of time they are getting 1/10 of what they are paying.
it's very true... I get expensive watches from the likes of independent brands and expensive cars .. as they are art..and you pay for the art unlike these luxury brands who mark up average products just because they have a badge.. and idiots will buy them.. and just another observation is women pay more for these kinds of products... which is why a phenomenon called the pink tax exists... very interesting
But Nikil, comfort of wearing ADIDAS Tshirt and local.... There is huge difference.
He is not talking about that. There is a lot of difference between a 500 and 5000 rupee shirt, but not between a 5000 rupee tshirt and 50,000 rupee one
These are the guys who label people as poor who don't buy it not because they don't have money but they have gained that maturity. and now they play the so called "Nirvana" card. Bunch of hypocrites!
The othe guy looks like Indian Pete Davidson lol
People look for happiness in things and Ad campaigns exploit this further.
"Lies fuel liars"
Who put Raj on this table
Yes nikhil want to be wealthy not rich
He IS wealthy, has a net worth over a billion $
Oh please don't drag bmw in this. They do make genuinely good cars.
But bro buys only LULULEMON