Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: cfimx who wrote (11608)	12/16/2000 3:45:53 PM
From: Bob Rudd	Read Replies (2) \| Respond to of 78516

I would define brand as a promise perceived by the customer, differentiating a product from others possessing similar physical attributes. It's what makes Coke or Bayer aspirin different from generics and what enables ANF to sell $8 Logo'd T-shirts for $25 to $35 over a period of years. Not to you or me - I'm unwilling to pay a premium to make a fashion statement, but to a substantial customer base. I value a brand by looking at the premium customers will pay over reasonable generic alternatives. This premium will fluctuate over time and may eventually disappear due to social trends or bad management. I would agree that brand loyalty, how long customers can reasonably be expected to pay a premium is a critical and difficult to forecast element. Fads soar and sag - usually within one or 2 years. Many fashion styles come and go as quickly - but that's not the same as brand - ANF has weathered several style changes - cargo pants come to mind - the brand cuts across style changes and fashion fads. Ralph Lauren introduces new styles every year - it's an attribute of that brand. Does this mean branding lasts forever, or even decades - nope. But is a brand that can't be assured of weathering decades, not a brand? Is it without value?