Best of the Week: What happens after a story?
- What explains the surge in luxury spending? Did the Jaguar rebranding work? What is worrying Himachal Pradesh?
Dear reader,
This is Sashind Ningthoukhongjam, writing from Mumbai. I cover personal finance stories for Mint Money.
Some time ago, I heard a CEO telling a television host, "Asset management is the most interesting job in the world, perhaps after being a journalist.” Well, I’m a journalist, and let me tell you – It’s not that exciting every day.
But sometimes, it is. Read on.
A month back, I was struggling for a topic when my boss Neil called. He suggested profiling Naveen Fernandes, a finance professional based in Bengaluru. Now, I had interfaced with Naveen off and on, all the while unaware that he was battling terminal cancer. The very next day, I was at his doorstep.
I could have never noticed on a Zoom call that his hand shook every time he sipped tea. I also got to know he’s been driving the same car for 17 years despite a pretty successful career in the MF industry. He was willing to share how he was preparing his finances to account for every possible outcome. Here’s that story.
It was a fortnight ago that I met Rahul Gala, a finance professional who was hearing impaired. Me and Neil conducted our interview with him over questions and answers written in a diary. He spoke to us about how the deaf community lacked financial literacy and knowledge about mutual funds since there was no proper content made in sign language. Here’s that story.
But here’s the thing. Doing the story was just one part. What happens after a story is the second.
Like how Naveen Fernandes, the cancer patient, finally got his ₹16.5 lakh stuck with EPF. He'd been trying unsuccessfully to take out his money for more than 5 years. Ironically, in the story, we analyzed his portfolio and he didn’t even want to count that amount as part of his corpus.
Last evening, someone handling PR of AMFI contacted to get Rahul's phone number. Rahul had mentioned to us that he had sent multiple emails to AMFI and AMCs urging them to start making mutual fund explainers in sign language. It’ll be interesting to see how this one goes!
With that, here’s some of the best work from Mint from the week gone by. We hope some of them will end up creating a change.
🚘 Rebranding
Rebranding can be a high-wire act for any company, and Jaguar's recent makeover is no exception. They've gone for a sleek, minimalist new logo and shifted their advertising focus, aiming to stay relevant in the electric vehicle race. However, not everyone's impressed. The new look, which some say could be mistaken for a luxury handbag brand, has sparked quite a bit of controversy. Gaurav Laghate spoke to S. Subramanyeswar from MullenLowe Lintas, who points out that while the intention was to modernize, the new logo might not resonate with what customers expect from Jaguar. It’s a classic case of trying to balance modern appeal with traditional values. Branding experts like Lulu Raghavan from Landor remind us that refreshing a brand isn’t just about a new logo or look—it’s about transforming how customers experience the brand across all touchpoints. The aim is to keep the brand fresh and relevant, which can be particularly challenging for legacy brands like Jaguar that have a rich heritage to uphold.
💎 Rolling in luxury
Despite a broader slowdown in spending, affluent Indians are increasingly splurging on high-end luxury goods, propelling the sales of prestigious global brands like Louis Vuitton, Christian Dior, and Hermes in India. In the fiscal year ending March 2024, these brands collectively raked in sales of ₹1,400 crore, showcasing a robust demand that's somewhat insulated from economic fluctuations. This trend is not just about more purchases but also about pricier buys, reflecting a shift in consumer behaviour post-pandemic. While general spending may be down, the wealthy are opting for more valuable luxury items, driven by rising incomes and a younger demographic eager to indulge in high-quality products, Varuni Khosla reports. Deloitte India projects the luxury goods market in India will continue to expand, estimating it to reach about $30 billion by 2030, up from $17 billion in 2024.
💵 Startup quotas
India's top ministries are mulling a game-changing proposal: public sector enterprises might soon have to buy at least 10% of their supplies from startups. Sneha Shah and Mihir Mishra write about this move, which is part of a broader strategy to inject vigour into India’s startup scene and could see these young companies stepping into roles typically filled by more established firms. The idea is inspired by the success of initiatives such as Innovations for Defence Excellence, which supports defence startups, and aims to replicate this in various sectors. With the government's yearly budget spending at a hefty ₹48 trillion, even a small mandated percentage for startups could mean big business.
🏁 Game on
Late last month, Formula 1 announced a groundbreaking addition: General Motors (GM) will join the grid in 2026 under its Cadillac brand, marking a significant increase in automotive giants entering the sport. This move, following Audi's acquisition of an F1 team for 2025, illustrates a major shift as the number of car manufacturers in F1 climbs to an unprecedented high in the modern era. Why are carmakers flocking back to F1? It’s a combination of F1's growing popularity under Liberty Media's ownership, which has expanded the sport's footprint in the US, and the allure of technological prestige that F1 offers. Car manufacturers like GM see F1 not just as a race but as a high-octane marketing platform that can rev up their brand's image and sales, particularly in the luxury and electric segments.
🌴 Travel blues
India's appeal as a travel destination has yet to fully recover, with foreign tourist arrivals still falling short of their 2019 peak. In 2023, the country welcomed 9.24 million international visitors—a notable improvement from 2022, but still below the nearly 11 million seen pre-pandemic. Midway through 2024, the numbers suggest that breaching the 10 million mark this year remains unlikely. Why the sluggish recovery? While global tourism approaches pre-covid levels, India lags, facing stiff competition from Southeast Asian neighbors and grappling with domestic challenges such as safety concerns, pollution, and inadequate infrastructure, writes Sumant Banerji.
🔋 Green drive
Honda Cars India is gearing up for a green future with plans to launch hybrid and electric vehicles by 2027 to comply with the upcoming stage-3 Corporate Average Fuel Efficiency (CAFE) norms. These regulations aim to reduce fuel consumption and CO2 emissions across an automaker’s fleet. Despite challenges with the current rules, CEO Takuya Tsumura is driving the company’s electrification strategy, with plans to introduce three electric models by 2026-27, including a battery electric vehicle based on the Honda Elevate mid-SUV model. Globally, Honda is targeting a fully electrified lineup by 2040, with two-thirds of its sales as electric vehicles by 2030, reports Alisha Sachdev. This shift marks a significant pivot in Honda’s strategy to align with stricter emission standards and achieve its broader environmental goals.
🔉 Ad check
The Central Consumer Protection Authority (CCPA) is poised to tighten its grip on surrogate advertising, with draft guidelines expected soon. These new rules aim to address loopholes in digital marketing and celebrity endorsements, particularly concerning the indirect promotion of restricted products like alcohol under the guise of unrelated items such as music CDs or glassware. Developed after consultations with stakeholders, including the beverage industry and consumer groups, the draft guidelines mandate that products used for promotions must be verifiably available in the market, not created solely for advertisements, reports Dhirendra Kumar. The proposed regulations also specify that only unrestricted products—those not banned or heavily regulated—can feature brand names without falling under the purview of surrogate advertising. Furthermore, these products must be registered with the relevant authorities and should avoid any direct or indirect association with restricted items.
🧾 Capex express
India is set to maintain its capital spending at around 3.4% of GDP for the 2025–26 fiscal year, translating to approximately ₹12 trillion. This steady allocation aims to sustain economic growth as state-level expenditure continues to lag. For the current fiscal year, capex stands at ₹11.11 trillion, a notable increase from the previous year’s estimates. While India's GDP grew by 8.9% in the first half of the current fiscal year, full-year growth may fall short of earlier projections, report Rhik Kundu and Subhash Narayan. To keep growth targets on track, the government plans a modest increase in capital expenditure for the next fiscal year, with the rise expected to range between 7% and 10%. With private sector investments gaining momentum at a slower pace and state-level capital spending remaining subdued, the central government’s capex remains a critical driver for economic growth.
🗻 Hillside woes
Himachal Pradesh is grappling with severe financial challenges, struggling to meet promises of government job creation and welfare schemes under the weight of a heavy debt burden. The state’s revenues are largely consumed by fixed expenses such as salaries and pensions, leaving little room for development initiatives. This financial strain has its roots in decisions made decades ago when the state relied heavily on central government funds without developing its own robust revenue streams. Post-1990, as central support dwindled, Himachal Pradesh increasingly turned to borrowing, which spiralled into a fiscal crisis. Despite measures such as tax hikes and targeted freebie schemes introduced under Chief Minister Sukhvinder Singh Sukhu, the financial outlook remains bleak. As the state, a popular tourist destination struggles to balance its books, N Madhavan explores how Himachal Pradesh’s debt woes are affecting its ability to sustain growth and fulfill its promises.
That's all for this week. I hope you have a pleasant weekend!
If you have any feedback or have anything else to say about our journalism, write to me at sashindnj@livemint.com. Alternatively you can write to Siddharth (siddharth.sharma1@htdigital.in) and Shashwat (shashwat.mohanty@htdigital.in) in our subscribers experience team or reply to this mail. You can also write to feedback@livemint.com.
Best,
Sashind Ningthoukhongjam
Correspondent (Personal Finance)
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First Published:7 Dec 2024, 08:00 AM IST
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