Star Power

Shanti Padukone plunges into the world of branded residences to find out whether celebrity endorsements add value to a project.How would it be to live in a house designed by the likes of Gauri Khan, Twinkle Khanna, Phillipe Starck or Jade Jagger? A new breed of homes with just that is mushrooming in the Indian real estate market’s residential segment. Much-touted branded residences are vying for attention. In the past two years, at least eight new residential projects in four cities have been announced and endorsed by celebrities, both national and international.The latest to join the brand wagon is star wife Gauri Khan, who will be designing homes for the Glitterati project by Pune-based Kolte Patil Developers. She joins a string of national and international celebrity designers including Twinkle Khanna for Panchshil Developers and Phillipe Starck, Giorgio Armani and Jade Jagger for Hiranandani, Lodha Group and Equinox Realty, respectively, and the numbers are swelling.What’s in a name?Sveta Jain, Director-Residential Services, Cushman and Wakefield, attributes this trend to the increasing competition amongst developers to launch exclusive products, to differentiate between the offerings, attract the best customers and be able to charge the highest premiums. “Moreover, the recall value and popularity of the project increases, resulting in better sales.” Alpana Parida, President, DY Works (a brand strategy and brand design firm), cautions, “Celebrity endorsements in any category are not the most effective unless used smartly. Celebrities need to resonate with the brand value and its personality.” However, she believes that while people are enamoured by celebrities, celebrities by association – such as star wives – are not going to be the reason for massive premiums. She adds, “Twinkle Khanna's credentials as a designer are not generally known and her relationship with a movie star can hardly be the reason for a buyer to go for a flat. Similarly, in the case of international celebrities, some are unknown in India.”If that’s the case, why are builders opting for these designers? Do they actually add to the project’s brand value? Cherag Ramakrishnan, Managing Director, Equinox Realty, provides a point of view. The company’s project, Water’s Edge in Bengaluru has celebrity designer Jade Jagger designing the third phase of a signature tower. “These designers contribute in terms of quality and expertise to create a niche product,” says Ramakrishnan. “It helps strengthen the brand image of the project or developer. And, the international flair and style enables the clientele seeking these lifestyle elements to have access to them.”Who’s buying?But, who comprise such clientele? Parida calls them ‘gold collar workers’. “These comprise small businessmen and entrepreneurs who have large incomes disproportionate to their status; for them, homes are a status symbol.” Jain, however, offers a broader perspective, “The customer profile is related to the popularity of the celebrities endorsing the homes.” For example, projects endorsed by cricketers and B grade actors and models usually target the mid to upper-middle class. These are usually large-scale projects located in suburban or peripheral areas. Superstar actors and international celebrity-endorsed projects target the affluent classes that include industrialists, CEOs and NRIs. These projects are usually exclusive and offer limited units in prime or unique locations. “But,” she believes, “not all of it fulfils the aspirational needs of the home buyer. Typically, mid-priced projects end up being pure branding activities. It is usually the unique luxury projects that fulfil the buyers’ demands.”With the middle class Indian now well travelled, such endorsements are not really surprising given the increasing level of luxury that they seek in their own homes. While these seem to be aimed at fulfilling the aspirational needs of the buyer, what remains to be answered is whether such endorsements are the key to higher sales…It’s time to sit back and watch!To share your views on this report, write in at feedback@ASAPPmedia.com