Who is still willing to buy a Birkin bag for $200,000? Who is going to buy a Richard Mille watch for $2m? Who is going to buy a Lamborghini for $5m? The prices of luxury products are mainly due to the myth and fantasy built around them, exclusivity, so and so wears it or have it, it is hand made etc etc.
The intrinsic value of such products comes from the design, material, technology and maybe such exclusive features. With today's technology and manufacturing processes, using robotics and AIs, the intrinsic value of luxury products are going to take a plunge. A Richard Mille watch, after the designing, can be massed produced at a fraction of its costs. The material is fractional, the manufacturing process is automated and robotics can produce better quality products. Copyright protection can only do so much when products can be produced by OEMs or competitors, with some minor changes and sold at much affordable prices.
Why pay millions for a Lamborghini when a similar or alternative product is just as good or better and at a fraction of its price? The future of luxury brands and fashion goods is not looking bright. China's manufacturing prowess and overcapacity is going to change the world and how and what consumers would be buying. There is nothing to stop China from producing affordable and very good quality goods in all fields for the benefits of the consumers of the world. Consumers of the world are the biggest beneficiary of China's factories. They are now able to have all the good stuff, fashionable stuff, at very affordable prices, without having to pay for an arm or a leg. Luxury brands can no longer hold them at ransom, to charge whatever price they want, and keeping consumers queuing and begging for the items.
China is going to change the world, to make the world a better place, improve the quality of life of everyone, with cheaper, affordable convenience and consumer items, household necessities and luxury goods. No consumers would be made suckers by the luxury brand owners anymore. The quality of life of the rich and the not so rich would be narrowed in many ways. Many of the wants of consumers would be all withing their reach, kinder to their pockets. Say thank you to China and Chinese factories and maufacturers.
PS. I am back. Happy Deepavali to all.
redbean.
9 comments:
Why are people paying millions for dinosaur bones is also something that I could not fathom? Same as paying millions for what 'Redbean' used to call as just graffiti.
But that is other people's money to be scammed, LOL.
China is exporting deflation, making things cheaper for everyone in the Global South. I think everyone in the Global South should thank China for its overcapacity.
Why pay $180,000 for a BYD in Singapore when same BYD selling for $18,000 in China ?
How much is the COE if the price is S$18,000? That was what I was wondering.
BYD in making a car, made a tiny fraction of what a piece of paper did in Singapore. How ridiculous has it become?
In Malaysia its 18 K RM!
SINKIELAND 6k plus.
Pay and drive off!
Sinkieland you slaughter ne me and I have to slaughter some one else!
That's our only economy!
Everybody thought of millions dollars selling off their Pigeon hole which built at a cost below 10 to 20K
No eyes see
Buy one car give PAP garhmen nine cars as tax !
Singapore is the most profitable automobile manufacturer, making billions without having to build a single car, with no overheads, zero investment or risk to talk about. This is a strategy that no country can come up with.
China has popped the balloon of luxury brands and goods. The Chinese would now not have to be duped to pay through their noses for cheap goods with a brand. The whole world too would not have to pay like crazy for such cheaply made stuff. Wise up, no need to throw your hardearned money away stupidly.
Luxury Brands were making tons of money while the peasants worked their guts out. The smart ones should have awaken, while the stupid ones will still continue to be stupid, still buying all the expensive stuff. They say they are buying a brand. Laughable indeed when it is their money promoting a brand. Benefits who really?
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