Tesla’s recent discounting initiative is unwise. Such short-term gains always come at a price. And the price, in most cases, is the brand.
It is rare for a brand to discontinue its most iconic item. But Patek Philippe did just that with its Nautilus 5711 – and it was a smart move.
TOP OF THE CHARTS: Despite the pandemic, media prices in the region demonstrate buoyancy particularly in digital display and video.
If a consumer bought a luxury handbag for $5,000 before the crisis, but it’s now available for 25% less, brand damage will be significant. Brands risk alienating their most loyal consumers in the hopes of attracting ad-hoc, one-time customers.
Almost all high-priced products get called "luxury" these days, but prices don't define which brands get considered luxury brands. Only extreme value can do that.
Ride share services aren't the only ones exploiting this model.
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