A: Given the huge impact of the COVID shock, it is imperative that central banks as well as governments continue with the liquidity and fiscal support. As of now it looks like the accommodative stance will continue in the foreseeable future and real interest rates will be zero and even stay negative for a long time – this is usually a signal for asset price inflation. We are seeing this increase in prices of all assets, whether it is equities, bonds, precious metals and even crypto currencies like Bitcoin. Markets are expecting the liquidity creation to continue. Emerging markets have underperformed the developed markets so far. … [Read more...] about DAILY VOICE: Valuations of largecaps & polarization of market into top 10-20 stocks are biggest risks, says Mihir Vora of Max Life
Millennial luxury market
Though Tier 2 towns such as Pune, Kochi and Ahmedabad, to name a few, have grown strikingly over the past few years for these luxury car makers, Delhi and Mumbai continue to command the lion’s share of the sales pie. Hit by Covid-19, these two cities are among the worst hit in terms of demand for new luxury cars. … [Read more...] about Luxury car sales are in free fall… But exotic ones are still in demand
Can we pool ad budgets? It is possible to find a non-competing entity with which we may share a theme. A nutrition or diabetics centre and a health club can split the cost of a campaign, focussed on slimming excess fat or getting in shape for happier life. Or, a cosmetic dentist and plastic surgeon can combine their resources for a “look your best” campaign. A cosmetics manufacturer can tie up with a dietician and a fitness centre for an anti-ageing campaign. A plumbing supplier and landscaper can mount a radio campaign encouraging drought victims to conserve water by replacing thirsty fixtures and greenery. By sharing a 100 sq cm advertisement instead of putting two separate 50 sq cm ads, both advertisers will enjoy better visibility for less. … [Read more...] about Want more from marketing? Collaborate to stretch your budgets
Besides fashion, in India, the big rental or pre-owned category is of luxury cars. According to Vinod Kothari, founder of Vinod Kothari Consultants that offers financial consultancy to brands and companies, “Brands such as Volvo and Daimler now allow leasing for three to four years and then agree to take back the asset, charging only about 60-65% of the asset cost over the lease term. In essence, the customer has the exclusive possession and use of the asset for those years, while paying only for a part of the asset cost. If the car is used for business, the rentals are tax-deductible.” … [Read more...] about Don’t have enough dosh to spend on a Prada gown, Gucci bag or a Rolls Royce? Just rent it!
Elara expects decorative paints to clock in 8 percent year-on-year (YoY) value growth from Q2 against 5 percent in FY20, higher than pre-COVID levels, with strong offtake for premium and “value for money” variants from July from Tier II, III & IV cities and continuing until August, and with the outlook for large metros also improving sequentially until December. … [Read more...] about COVID-19 Impact | Paint sector to feel the pinch in FY21; large players look better-placed