Apple is a luxury brand. Or can we consider as one since even Vogue created a 6 pages special article about the new Apple product?.Eventhough the new generation of luxury consumers are interested on “smart” watch, there are two important weakness where Apple can’t compete against other tradionnal & luxury watchmakers: the technology and the value as analyzed in this Bloomberg’s video.
Bernard Arnault, the big boss of LVMH group studied Polytechnied school in Paris. His brilliant destiny could have been linked to big technological firms “made in France”. But he preferred Luxury market: nothing related in theory with thecnology. Why? Because the technology quickly become obsolete and the luxury is timeless. Or at least it can be timeless if you preserve the brand value.
The brand assets are based on the quality of the product and the history& attitudes of the brand. Even if Apple wants to become a luxury brand through a smart watch, they miss this value that some swiss made brands have nourrished.
Apple is a technology brand, and therefore the main fear that luxury shoppers will have when the pay 10K$ for a Apple Watch is: for how long my watch will cost 10K$? The technology will become quickly obsolete? Is this really worth it? And from other side, what Apple can do in communication & media to give this vision of upper scale brand and bring value to the brand as other watchmakers do?
To be continued…