alt Hacker NewsI am okay with these big American corporations getting bought out, for their products to be reamed out, for the brand to be discarded, only to exist as a brand in a private-equity backed holding company.
This is because other companies come along to fill the niche occupied by the established brands. Since they can't cheapen the products any more than the behemoths can, they need to innovate and evolve.
As for the backpack product, I wish the likes of Eastpak and whatnot would just die, since they have not innovated in a very long time.
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The issue is it reduces information availability to customers: if a customer finds a brand that produces high quality products that they know from experience they can trust, that trust can't propagate forward in time because the incentive it to abuse it for short-term profit, which is a net negative overall because the customer needs to find the new high quality product on the market, something that costs time and comes with risks itself. It's a market inefficiency.
Why would you be ok with that?
These brands earned the consumers' esteem because decades ago their products pushed the envelope in the respective markets. By having their product quality severely degraded, this also lowers the bar for the niche brands. They no longer need to push the envelop to get a competitive advantage. They just need to replicate what was already possible. I.e. no real innovation is happening any more.
Also, for every 2 niche brands that are trying to get it right, you will get 1 that is sketchy: send designs to the cheapest manufactury in China, hire a few influencers to post on instagram, and you're done. Basically capitalizing on the misperception that "niche == better".
So, we are left as consumers to have to dilligently research every purchase, just to get the quality that was the standard a few years back. There's nothing to enjoy here.
Not to mention that at the bottom, this is just another manifestation of "fast fashion" and "planned obsolescence".
That's idiotic. As a consumer I'd prefer the same company to keep making the same good products forever. I don't have time to research which of the new brands is just as good.
If other companies come along to fill the niche then how is it that the likes of Eastpak and whatnot have not died?
I don't disagree in principle. But, as a consumer, this makes purchasing a bit more complicated. BITD, I could just buy an EastPak or JanSport and be fairly sure it was a good bag. Not much thought or analysis required. Today, I have to dig through 100s of brands I've never heard, with most of their ad budget spent on influencers who maybe can't be trusted. It's not a recipe for a healthy market.