Franco wrote:In case you are not aware, most of Apple stuff is made by Foxconn in China, not by Apple in Cupertino USA...
My point exactly, Apple have done it without bursting their "bubble" of perceived quality (note their stuff is no better quality than their competitors, it is just perceived that it is by their core market). Same goes for Hilleberg and One Planet. Macpac on the other hand combined their move to Asian manufacturing with endless stupid sales
, raising pricesand moving from being stocked in specialised bushwalking stores to having their own clothing supermarkets with the el-cheapo travel clothes and high quality bushwalking stuff all mixed together. It's not just the move to Asia that has ruined their marketing bubble, that is just a small part. It's like if Apple when moving to Foxconn also suddenly jacked the price of all their current devices 30%, discounted them 50% in endless sales, yanked their products from all 3rd party retailers, filled the Apple stores to the brim with racks of el-cheapo generic electronics (with with an Apple logo glued on the front), kept producing the iPhone 3 for 25 years and then just had those existing few halo devices (iPhone, iPad, Macs etc) all regularly at 60% off mixed in with all the cheap Apple branded crap ($10 calculators and $15 cd players, $200 netbooks running Windows etc) and what not cluttering the shop. Yes they would sell bucket loads of stuff, but over time they would just become another run of the mill computer shop.
The flip side to that argument is that Macpac had a pretty small client base in the very high quality/high price bushwalking gear market, and much lower profit margins working through retailers. So to develop more growth it probably had no choice but to lower itself to the Kathmandu model where it can attract many, many more buyers and by opening their own supermarkets profit margins would have to be much, much higher. I'm sure they are making a barrel of money compared to the old model, it doesn't mean their customers of the old days will be happy, but from a bean counters perspective if you're making more cash who cares?