Is a Blackstone Exit Best for Leica ?

Beginning with the M8's arrival, I could afford a new digital M body. I look forward a time when I can judge the M digital body to be a competitive, value-added purchase. The money is in the bank waiting to be spent.

When someone buys a Ferrari, they're not thinking it's a competitive, value-added purchase. Leica is a luxury item catering to a smaller group of well heeled photographers.

If it were anything but a luxury item, it would be out of business.
 
i dind´t know the T line was a failure..might be interesting to know what are the reasosn for that.

But i think as said before, Leica should go for a partnership with Apple. there Leica can reach a sensible market with enough money to throw in.
 
i dind´t know the T line was a failure..might be interesting to know what are the reasosn for that.

But i think as said before, Leica should go for a partnership with Apple. there Leica can reach a sensible market with enough money to throw in.



And before we know it people will be sleeping outside Leica boutiques all around the world at the release of each new digital M.
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Which of course with Apple's help will be exactly like the previous M but with some clever new marketing to convince you that it isn't!
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yay!.gif
 
i dind´t know the T line was a failure..might be interesting to know what are the reasosn for that.

Too complex to appeal to point and shoot buyers, and too small a system to appeal to the technical minded? The design is clearly pitched towards the Audi driving Apple using Braun collector, the merely disgustingly rich will pick the Hasselblad Sony for maximum bling. But the former buyer wants SYSTEM, and won't settle for four lenses when Fuji and Sony have upwards of a dozen...
 
When someone buys a Ferrari, they're not thinking it's a competitive, value-added purchase. Leica is a luxury item catering to a smaller group of well heeled photographers.

If it were anything but a luxury item, it would be out of business.

Some people buy expensive cars because they enjoy the driving experience. Some people buy them for status symbols. Some people buy them because they plan to keep them for at least a decade.

Value-added business plans certainly include luxury items. But all value-added products are not luxury items. Leica lenses are not luxury items. They are valued added products because one is paying for superior engineering, materials and performance.

Just because a product sells for the highest price in the market does not necessarily mean it is a luxury item. Clothing is a prime example. One can pay high prices primarily to own a status symbol. Or one can pay high prices for quality. I have a 20 year old Burberry dry-waxed, canvas field jacket that was double the cost of most other rain coats. But it is still in excellent shape in spite of heavy use. That coat will out last me.
 
Let's see...

...the first thing that Panasonic will want to do is shift production to China.

...the first thing that Apple will do is move production to India.

Design and manufacture for the lowest common denominator and continue to produce new models on a regular, 2-year, timetable. Obsolete in 4 years.

Yeah, I guess you are right. That does sound like Leica all right. :)
 
Some people buy expensive cars because they enjoy the driving experience. Some people buy them for status symbols. Some people buy them because they plan to keep them for at least a decade.

Value-added business plans certainly include luxury items. But all value-added products are not luxury items. Leica lenses are not luxury items. They are valued added products because one is paying for superior engineering, materials and performance.

Just because a product sells for the highest price in the market does not necessarily mean it is a luxury item. Clothing is a prime example. One can pay high prices primarily to own a status symbol. Or one can pay high prices for quality. I have a 20 year old Burberry dry-waxed, canvas field jacket that was double the cost of most other rain coats. But it is still in excellent shape in spite of heavy use. That coat will out last me.
Quite. But all too many people can't tell quality from luxury. "If I can't afford it or don't appreciate it, then it's a pointless luxury bought only by the stoopid rich". Never cared much for Barbour but I've got a Billingham Ventile jacket that must be at least as old as your Barbour.

Cheers,

R.
 
Not that reliable a source. When I was at the introduction of the Monochrom in Berlin the Portuguese factory was already finalized and the money invested.

That article contains a press release from Leica. How much more reliable do you want?
 
Well, does having a talk with Dr. Kaufmann count? Get your dates staight.
That press release is about the official opening. When do you think the financing was clinched? The planning done ? The building designed? Long before.
In mid-2012 Dr. Kaufmann was in the room dedicated to the new Portuguese operation showing off the model of the factory and telling about the progress of the building. In fact he was hoping for an opening in the beginning of 2013. Production was scheduled a few months before. apparently there was a slight delay.
For the Blackstone deal this was a fait accompli.
 
Just that it is beside the point, as I was responding to this particular snippet:
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The business model is flawed, they had to sell 3,500 MM to recoup their money on that R&D/build...they sold 3 times that amount, but then open the new Portugal factory at a cost of 65 million Euro, but here is the cherry...Kaufmann funds the build, Leica then pay him rent....and Blackstone allow this?
 
... I'm struggling with 'value added product' concept I have to admit.

What distinguishes a value added product from, well ... a product?
 
... I'm struggling with 'value added product' concept I have to admit.

What distinguishes a value added product from, well ... a product?





http://en.wikipedia.org/wiki/Value_added

[...]value added refers to "extra" feature(s) of an item of interest (product, service, person etc.) that go beyond the standard expectations and provide something "more", even if the cost is higher to the client or purchasor.[...] Value-added features give competitive edges to companies with otherwise more expensive products.
 
... how odd ... that just isn't correct, value-added is the difference between the unit-cost and the unit-price when you sell something (what we pay our VAT on here in Europe)
 
Stewart,

An artisan decides to buy 100 g of silver. All silver with the same assay grade is identical. This makes silver a commodity. The artisan will buy the silver at the lowest price because it's all the same. There is nothing to differentiate the value of the silver.

The artisan makes an intricately crafted piece of jewelry using their creativity and skill. Now that same 100 g of silver is worth much more than its commodity price because the artisan added value. The piece is well-made, aesthetically appealing and it's the only on in existence. So the 100 g of silver will sell for more than it's commodity price. It is a value-added product.

Is the finished piece a luxury item? That is a matter of context. In some cases it would be a frivolous luxury purchase that might only be worn once. In other cases it could be a cherished gift for a wedding anniversary, university graduation, etc. and worn whenever appropriate for decades.

To complete the analogy, suppose the craftsmanship was shoddy, the design was a copy of an dated style and the clasp was flimsy and unreliable. In this case the piece's value above the commodity price of 100g of silver is lower. It should, and would, sell for less.
 
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