logoalt Hacker News

myrmidontoday at 10:55 AM6 repliesview on HN

I personally see two effects that are very detrimental here:

1) "Quality brands", where you pay a premium to get high quality/durability products, are economically incentivized to "sell-out" (cash in the brand name by producing as cheaply as possible). This is because customers take some time to catch on, and short-term financials are too often more important than anything else.

2) Increasing trend towards no-name products (or ephemeral brands). This means that producers can sell cheap trash with no drawback whatsoever; slightly more expensive quality products become unmarketable because every customer will assume you're just trying to sell them the same cheapest shit for more.

I used to think that brand products were a universal money waste for suckers, but now I think they can be a very valuable mechanism.

What would really help in my view though is to force companies to stick with their brand, to incentivize them to invest into it and to make "cashing out" on good brands a universally bad decision.


Replies

vladmstoday at 8:10 PM

I see "quality brands" as a potential way to avoid knowing yourself stuff about what you buy. In itself, outsourcing one's expertise about a product might be the root cause of the detrimental effects you mention.

As an example: I was once shopping with someone that had experience in fashion. While I don't remember all the details, with one look/touch the person could tell and explain if something was poor or high quality, while to me it all looked mostly the same. Based on that experience, I now I mostly stick to checking the material, and avoid plastics which seem to show a tendency for low quality across the board.

I do agree that it requires effort to know stuff about things, but when I see people that go like "oh, I need X, will pick the first X that shows up on Amazon", I am less amazed we get crappy quality for lots of products.

show 2 replies
kqrtoday at 11:17 AM

> Quality brands are economically incentivized to sell-out [...] because customers take some time to catch on, and short-term financials are too often more important

That probably happens a lot, but there's another mechanism by which it could happen, that requires no malice: the brand gets a quality reputation, which increases demand for its products, and they are unable to produce quality products at the rate needed to satisfy that demand. Then it's easy to reason that it'd be a net benefit for everyone to loosen the quality requirements a tiny bit, in order to satisfy the demand of more customers. People used to the quality will barely notice any difference, and then twice as many people can get that experience.

That works once, but when applied again, and again, and again, and again it becomes a problem, even with zero ill intent.

show 2 replies
DanielHBtoday at 11:05 AM

> "cashing out" on good brands a universally bad decision.

For the company yes, not for the executive bonuses.

It is quite notable how the long-lasting companies that are household names somehow managed to resist this urge. Most of them are private.

People need to compartmentalize things in order to make sense of the universe, but doing so for companies (and governments) is just counterproductive.

Whenever you think about a company to draw any good conclusions you always need to think about all the people who work there, from the factory worker to the executive.

asdfftoday at 8:50 PM

Something I've noticed is every maybe 3-4 years there's a new "hot person athleisure" brand that appears, prices at a premium, bombards social media, drapes every single person you see running outside in your city in full sets from it, before getting turned out and replaced by basically the same exact thing with a different name.

So they've gotten quite good at the pump n dump of getting everyone in the spin class on some new $300 polyester outfit every two weeks. It is probably brutally formulaic how refined the playbook is for these sorts of companies.

mattaculartoday at 11:00 AM

Also it doesn't even matter if the rare company making a high quality product long enough to get a positive brand rep is incentivized to sell out (although I don't disagree with you that is a pressure to act in short term interests) thanks to this great thing called: private equity!

Towaway69today at 11:25 AM

> is to force companies to stick with their brand

Punishment is never a good long term solution. Because punishment is related to revenge. And revenge reinforces the punishment - but on the other side.

Perhaps questioning the underlying assumptions we make about products, money and capitalism is an alternative approach:

- money is just a means, not an end. Allowing faceless investors to pump money into brands and then have them force companies to turn a profit at any price (i.e. by decreased quality at higher prices - it's a brand after all). The euphemism for this is "increasing shareholder value". The only value being increased is money.

- why does advertising build on our fears of being "different" (not belonging to our assumed peer group) or "not being happy" (if you buy this product, you'll be as happy as the person shown here in the advertising). Or missing out on something. The euphemism here is "increasing brand awareness". They that shout the loudness will remain memorable.

- why has everything and everyone become a product to be sold and repackage to fit into the latest trends. Intelligence is now also become a product in the form of AI with folks outsourcing their intelligence to a machine "oh AI can do this better than I could so I won't even bother".

Unfortunately we make too many assumptions that it has to be this way. Science and nature have yet found the unifying law of capitalism or brandism, let allow law of influencism.

So until the next bubble bursts and much time is spent saving large bloated inefficient corporations from bankruptcy because interested parties have their fingers in the pie, the game will continue.

The whole thing is becoming a giant game of monopoly with no end. At least monopoly eventually ends with the winner gloating over their success and everyone else quietly walking away.

show 1 reply