There isn’t much that distinguishes the high end brand jeans in the boutique from the no brand jeans at the supermarket. They may even be from the same manufacturer and be made from the same fabric.
A watch that costs 10 Euro shows the time with the same accuracy as a watch from a prestige brand that costs 50 or 100 times that much.
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The pattern is the same in area after area. We are not prepared to pay much for the basic qualities of a product. But we are prepared to pay for other qualities. Immaterial qualities that are associated with a brand. Qualities that says something about us, or about who we would like to be.
These are qualities that have very little to do with the physical product. They are created through communication. Communication that tells us that some one who uses a product is wealthy, environmentally concious, an intellectual, a dare devil, a globetrotter or whatever is associated with that brand.
These are qualities that customers are prepared to pay for and thus creates margins. Unlike physical qualities of your product theses are qualities that competitors can’t easily copy.
That’s the advantage of communication. It creates value and it creates unique qualities.
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