Our insight piece this month takes a global consumer good as a point of reflection on the value of innovation and brands. The “iconic” Apple Watch Hermès retails from $1,149 for the most basic to $1,499 for the “Etoupe Swift Leather Double Buckle Cuff”. With a standard Series 2 Apple Watch selling for $369 that means people are prepared to pay $780 or more for a leather watchband and a digital watch face. According to Forbes, Apple is the most valuable brand in the world with a value of $154.1 billion, almost double that of Google, the next most valuable. Yet what does the difference in pricing between an Apple watch and a leather watchband tell us about the relative value of these two brands? Which of them needs the other more? And which is likely to be more enduring?
THE CIPRIANI PRINCIPLE: “ICONIC” BRANDS AND THEIR VALUE
If I could figure out how to make spaghetti with tomato sauce and sell it for $30 like Harry Cipriani, I would.
Harry Cipriani at the Sherry Netherland is a New York institution. I recall an article in the New York Times quoting regulars on how their diet food tasted better at Cipriani (Arrigo would stop the microwaved plates of Lean Cuisine at the kitchen door and add butter, cream and salt until it met his standards) and Daniel Boulud, the chef, about Cipriani’s ability to sell the simplest plate of spaghetti for the highest price in New York City.