Zerodha's Billionaire Co-founder Explains Why He Has Stopped Buying From Ultra Luxury Brands
Contrary to the popular notion that most billionaires in the world show off their wealth by buying and using products belonging to luxury or even ultra-luxury brands, Zerodha co-founder Nikhil Kamath has a different opinion.
Contrary to the popular notion that most billionaires in the world show off their wealth by buying and using products belonging to luxury or even ultra-luxury brands, Zerodha's co-founder, Nikhil Kamath, has a different opinion.
Who Is Nikhil Kamath?
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Nikhil Kamath co-founded stock broker firm Zerodha in 2010 with his elder brother Nithin Kamath. Zerodha combines the word 'zero' with the Sanskrit word 'rodha', which means barrier. Nikhil has a net worth of $1.1 billion currently (as per Forbes).
In June this year, Nikhil Kamath signed the ¡®Giving Pledge,' becoming the youngest Indian to do so. Giving Pledge is an initiative that was founded by Warren Buffet and Bill Gates, along with the Microsoft co-founder's ex-wife, Melinda FrenchGates,s in 2010, to encourage wealthy people to donate a majority of their wealth to philanthropic causes.
What Has Zerodha Co-Founder Said?
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Billionaire Nikhil Kamath recently claimed that he no longer purchases ultra-luxury brands due to what he perceives as arrogance in their marketing strategies. Kamath was speaking at the latest episode of his podcast 'WTF is with Nikhil Kamath', titled 'WTF Goes into Building a Fashion, Beauty, or Home Brand?".
Episode #11 Out Now - https://t.co/AiEG4q9maZ
¡ª Nikhil Kamath (@nikhilkamathcio) October 12, 2023
It takes a lot of intent and humility to share trade secrets learned over the years. Here's me thanking my three friends for putting in the effort to do this ?. Hopefully, this helps that one person create a truly spectacular Indian¡
Why Has Nikhil Kamath Stopped Using Ultra Luxury Brands?
During the show, Nikhil Kamath opined that ultra-luxury brands intentionally make the customer build a relationship or get on a list to buy their products, not because they can't make a million of those products but because their "strategy of being arrogant" has served them well.
"In the last 3-4 years, I have completely stopped buying from ultra luxury brands like Hermes and Louis Vuitton because I feel they play you. Their entire marketing strategy seems to be to offend and get some kind of a reaction out of you and then buy from them. The most offensive thing is to go to a shop where they are marking up a product one is to 1,000 times and then say you can't buy this product until you build a relationship with us or get on a list or all of these hoops that you have to jump through," Nikhil Kamath said, as per the Moneycontrol report.
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He further added, "It is not because they can't manufacture more of that...they can go make a million of these bags and stuff but that strategy of being arrogant has worked so well for them that I think people have to be cognizant of that."
Also Read: Zerodha Co-founder Nikhil Kamath Says 'Trading Is Like Dating'
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