16 Oct '13, 7am

Just wrote this piece: #Apple should be a Louis Vuitton and not Zara

Just wrote this piece: #Apple should be a Louis Vuitton and not Zara

The mobile phone market is currently in the phase of commoditization. If Apple follows what every pundit and analyst says about the need to gain market share, they will be fighting a lost cause. The only way out is to establish themselves as a brand like a Louis Vuitton and not a Zara. I will take the metaphor further. There can be faked LV products out there, but essentially as an emerging market progresses, the middle class will aspire themselves towards owning a real LV product i.e. an upper class brand in analogy. Apple is essentially moving itself upstream and become an aspirational brand for emerging markets. If it stayed in the market share battle, they have to slash their own cash cows and constantly fighting their competitors on price sensitivities. The analogy goes in the way that Zara has to continuously made pricing adjustments against similar mass consumer bra...

Full article: http://www.bernardleong.com/2013/10/16/apple-louis-vuitto...

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