In the backdrop of recession, the cost cutting trends are catching up in almost all organizations. Increments are on hold and people are struggling to hang on to their jobs apart from the millions of jobless workers.
This radical transformation has affected the gadgets we buy too. But here the trend has been on the positive side. The number of lifestyle gadgets had increased over the years and according to me buying them was more a waste of your hard earned money.
In India the iphone was launched at a sky high price. This simply made it from a cool gadget to a lifestyle gadget, a luxury not necessity. The $200 price tag was wiped off and the phone was launched at a much higher price than most expected. The promoters, in hopes of capitalizing on the iphone craze in Indian customers thought of making easy money by putting a high price tag. The result was, that iphone failed miserably. It was on my list of must have gadgets but I too thought of not buying it. On the contrary Nokia phones offering many more features at half the price sold like hot cakes.
Recession simply amplified that gap in sales between the lifestyle/luxury and utility gadgets.My focus is always getting the best value for my money, but I don’t mind paying more for a better/cooler brand that offers the same thing at a higher price. But sometimes the high price makes the product more of a liability than a show-off lifestyle gadget.
Recession has suddenly given the utility (cost-effective) market an indirect push. Although the cost-effective product does not always mean low cost. Millions of workers in low cost exports in Southern China have lost their jobs. So the low cost funda does not apply.
Cost ~ Features + Brand value.
In recession only the best manages to survive. The best here is the product with good features and a justifiable price tag.