GST: Luxury goods hold its own

Will one cut back on expensive splurges? Will one live a rather austere existence without the familiar luxury necessities?

With these questions in mind, I made my way to Ritz Carlton Residence here to witness Ken's Apothecary's latest collaboration with florist extraordinaire, O Flwr.

Laid in the middle of the room were boxes of flowers and sweet surprises, Ken and O Flwr had jointly created the special offerings to usher in the celebrations for both Mother's Day and Father's Day.

Customers have the option to order beautiful flowers-filled boxes complete with a selection of perfumes or candles from luxury brands Annick Goutal and Diptyque. These boxes can be delivered to your loved ones within three days.

There are six sets, from roses to earthly succulent and all things pretty, fitted perfectly into these boxes. The collection marks Ken Apothecary's debut in collaborating with other brands and the future seems bright for the venture.

Sharing his thoughts on GST, Ken Lim, who is the founder of Ken’s Apothecary, said brands under its stable will not see any increase in their prices.

He said the brands principals including Dr Sebagh, Caudalie, Annick Goutal have decided to absorb the six percent tax following the weakening euro as well as to remain afloat.

Diptyque will see prices of its products in Malaysia increased by six percent. According to Ken, the prices of Diptyque fragrances and candles in Malaysia are still low compared to other countries in Southeast Asia.

Ken said, the phenomenon of stocking up before the price of good increase, he coined the term ‘Petroleum Phenomenon’, isn't sustainable.

He also said the mad rush to stock up products would be short-lived. Eventually, consumers would have to be accustomed to the price hike.

As for luxury products, Ken said it is a lifestyle decision.

"If you have achieved that lifestyle status, I must say that it's very difficult for you to go back and say, 'Okay, I'll try something else'."

The bubbly entrepreneur said the GST would not just affect the luxury market segment but "Ken's Apothecary and everyone else."

When asked if he would offer new products under the Ken's Apothecary stable -- following the implementation of the GST on April 1 -- Ken said the decision will be made based on consumers' demand and not dictated by the GST.

"Yes, we have that intention but we don’t mind to wait and see how the market (will fare)."

According to the Luxury Goods Worldwide Market Study 2014 conducted by Bain and Co., the high-end market will see a consistent growth between four and six percent in 2017 that is totaled at EUR265 billion.

The study indicated, factors that will contribute to the steady growth including customer experience, flawless retail management and people excellence.

The survey also stated that beauty products have enjoyed a consistent growth since 2009.

Recently, I accompanied my colleagues, Izza Izelan Basar and Linawati Adnan to a fashion show held at the swanky Starhill Shopping Gallery here.

The front rows were lined with perfectly-groomed ladies in their finest couture and lovely candy-coloured Hermes and Chanel handbags.