Saturday, July 21, 2012

Brand Names on the Wane

Do you think brand names will still be popular in the future?

            I believe brand names will recede in importance in the foreseeable future. Though the number of brands may fluctuate, arising from the closing down of one company and the establishing of another, it will decrease in the long run.
            Brand names affiliate themselves strongly with their own products in order to represent their high qualities and fashion. Normally when the price of merchandise escalates, the demand for them plunges. As for the extravagant brand, on the contrary as we all know, the higher the price, the more we purchase, as we tend to show off the external adornment of lavishness or are falsely induced to buy expensive but plausibly good-quality things. But this doesn’t hold true now in the rough time. Not since the Great Depression in 1930’s have the condition of financial been so bad. We have undergone crises such as subprime mortgage and European debt for the past five years. Now people are generally only willing to buy basic pieces of clothing to replace the worn out ones in their wardrobe
            On the other hand, brand is to the goods what trust is to the bank. If the banking industry’s credibility is shot, and without trust the business is doomed to crumble. Along with the rise of China, companies with reputable brand have moved their manufacturing line there, causing the quality of clothes, shoes and many other things to decline and leading the case of food produced with scandalous additives. Like the banker failed to justify the confidence of his clients in him, the reputation of the brand has been thereby dented.
            Despite the fact that factors unknown can be seen for the blips on the path of decline, which we cannot possibly predict, the popularity of brand names is on the wane.

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