Chris wrote:
Moxxey has it spot on with trades in, and reselling. As for making entry level products that might somehow cheapen the brand. AUDI, BMW, Mercedes and Aston Martin all now have entry level cars. It doesn't mean the S class or 7 series are any less good does it?
OK, let’s get this clear....
This is not an Aston Martin..... http://www.eurocarblog.com/post/2021/aston-martin-cygnet-new-offiial-pictures this is a piece of dog tu*d with a nice leather interior and a couple of very desirable badges fore-and-aft, dressed to con the fickle that AM is fulfilling its EU Carbon directives (not true but...)
Back to topic, I see great parallels between my No.1 hobby (driving my V12 Vantage) and my (now) No.2 hobby – music from B&O, in terms of the businesses themselves.
Both Aston and B&O make superb quality products – which are not always fully appreciated – namely I think because of price and the lack of attainability for most people. Both are small independent companies not immediately associated with bigger groups in their own businesses. Both are – because of size/independence are struggling to compete with the big boys (Apple / Porsche/Audi etc..). Both produce products with amazing feel and sense about them (old skool) but often lack technological edge and economical sense that their large counterparts have.
There is no-doubt that when the current V12 6-liter engine in current Astons is phased out on environmental/economical grounds in 2014, the new power plant will be succeeded by a smaller power plant made by either Mercedes, VW, Toyota or whomever, be forced of forced-induction, noisy (as in unmoving noise rather than the melodic burble of a naturally aspirated V12) and......well, just like every other sports car out there really. The magic will be lost and debased (as has already happened with flappy paddle gear-shifts).
The real reason btw the Cygnet is in place:- Sales, shareholder returns and perhaps a link-up with Toyota in the future for what is seen by many enthusiasts as a debased survival plan.
So what is the alternative for both Aston and B&O? Well sadly, I don’t think there is one. It is check-mate with nowhere to move. Innovating with the big-boys will debase the brand to the old customers, perhaps causing extinction, not doing so will definitely cause extinction unless they downsize and go cottage. Shareholders will not allow that to happen.
So there’s my prediction. B&O will go to more basic cheaper products and still satisfy no one. The products will never be able to compete with Apple price-wise irrespective of what they do, margin’s will reduce and the old mantra “too expensive for the features” will ring truer in the future than it does already now.
Check Mate.