| ▲ | moritzwarhier 7 hours ago | |
Aren't all of your points already addressed in the article? > Someone in the industry pushed back on an earlier version of this piece with a fair point: VF Corp's brands still operate with their own design teams and their own headquarters. The brands aren't literally merged. And the premium tiers within North Face and JanSport still use quality materials. The Summit Series from TNF still has Cordura. You can still find a JanSport with YKK zippers if you know where to look. > All of that is true. But it actually makes the argument worse, not better. (emphasis mine) > The fact that VF Corp kept the premium tiers intact while degrading the entry-level and mid-range products means this was a deliberate segmentation strategy. They still make the good version. They just also sell a garbage version under the same trusted name, in the same stores, to the people who don't know the difference. The brand reputation built by decades of quality products is now being used to move cheap products to buyers who trust the logo. > Walmart's JanSport and REI's JanSport are not the same bag. But they carry the same name, and that's the point. The name is doing the selling. The product doesn't have to. Admittedly, they still equate higher price with quality, but it doesn't change much about the problem that economies of scale degenerate into market failure when there is no real competition anymore. | ||