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09 November 2007

Comments

Tim Deluca-Smith

I'm becoming increasingly interested in the rise of the 'branded' mobile and the place that such devices have in the market. 2007 has been a watershed year for such devices, Prada, Diesel, Levi Strauss, Bang & Olufsen, Armani and Tag Heuer are just some of the names that have cropped up in the last 12 months, all hoping to extend their brand into one of the fastest growing consumer electronics markets.

The mobile phone is the current flavor of the month, typically amongst fashion brands. This is unsurprising given the mobile phone's position as a fashion accessory. The manufacturers also seem keen to jump on the bandwagon and while I had initially felt the opportunity to be limited to white-labelled Asian devices most of the major brand-partnerships are falling out of the doors of the big-five.

There are obvious benefits to extending the lifecycle of a handset platform / model by broadening the portfolio to include 'branded, limited edition models'. In addition, brand association is in itself enormously powerful to companies such as LG who are looking to gain a better foothold in Europe and North America (where the Prada name carries a certain kudos amongst the target demographic).

However, some challenges do remain and when you look to partner with respected brand names, a clash of egos is not uncommon. Fashion brands are used to calling the shots and taking complete control of branding, marketing etc. Terms and conditons can be restrictive for the handset manufacturers and up-front payment is often demanded (although Prada is believed to have taken a percentage of each phone sold instead).

But ulimately the demand is there. During the summer, the LG Prada became the number two best contract-seller for Carphone Warehouse in the UK and many retailers have been delighted at the excitement that such products inject into the market.

I just blogged about this topic this morning!
There's more at my blog... http://wirelessinformaticsforum.wordpress.com/

Tim Deluca-Smith

I'm becoming increasingly interested in the rise of the 'branded' mobile and the place that such devices have in the market. 2007 has been a watershed year for such devices, Prada, Diesel, Levi Strauss, Bang & Olufsen, Armani and Tag Heuer are just some of the names that have cropped up in the last 12 months, all hoping to extend their brand into one of the fastest growing consumer electronics markets.

The mobile phone is the current flavor of the month, typically amongst fashion brands. This is unsurprising given the mobile phone's position as a fashion accessory. The manufacturers also seem keen to jump on the bandwagon and while I had initially felt the opportunity to be limited to white-labelled Asian devices most of the major brand-partnerships are falling out of the doors of the big-five.

There are obvious benefits to extending the lifecycle of a handset platform / model by broadening the portfolio to include 'branded, limited edition models'. In addition, brand association is in itself enormously powerful to companies such as LG who are looking to gain a better foothold in Europe and North America (where the Prada name carries a certain kudos amongst the target demographic).

However, some challenges do remain and when you look to partner with respected brand names, a clash of egos is not uncommon. Fashion brands are used to calling the shots and taking complete control of branding, marketing etc. Terms and conditons can be restrictive for the handset manufacturers and up-front payment is often demanded (although Prada is believed to have taken a percentage of each phone sold instead).

But ulimately the demand is there. During the summer, the LG Prada became the number two best contract-seller for Carphone Warehouse in the UK and many retailers have been delighted at the excitement that such products inject into the market.

I just blogged about this topic this morning!
There's more at my blog... http://wirelessinformaticsforum.wordpress.com/

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