Friday, 20 March 2009

The Bentley Factor... 20/03/09

....."The luxury market is similarly affected. Bentley has announced a 5% increase in price for all of its models will apply in the UK from April 2009." According to the BBC news online "However, cash-strapped consumers eager for bargains will struggle to take advantage of the car industry's woes.

While carmakers are finding it difficult to shift their vehicles from the forecourt, the signs are they are not prepared to sacrifice their profits by dropping prices.

Ford and Vauxhall both raised their UK prices in February - the Ford range increasing in cost by an average of 4.7%, while Vauxhall increased the prices of all models except the Vectra and VXR8 by an average of just under 5%...."

Bentley, as a luxury brand in the automobile industry is no doubt holding onto their strategy of maintaining the brand equity, rarity and aspiration; brave in these times. However if they can maintain this successfully, it will ensure reinforcement and exclusivity of the brand, luxury brands cannot afford to drive (excuse the pun) their business on discount (Saks?). A very difficult position to come back from. If we just had that extra 5%, we may well be interested!

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au