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Mobile handsets have become a status defining lifestyle product in the modern world. Revenues from luxury branded handsets are expected to exceed $11 billion in 2009 and more than $43 billion in 2013.

For a producer of luxury goods, luxury mobiles are an extension to their product portfolio while for handset manufacturer or mobile operator, an entry into the luxury mobile segment is an approach towards increasing brand equity

Recently, luxury brands in partnership with handset manufacturers are in the process of creating a distinctive luxury segment in the mobile industry. Leading handset manufacturers such as Nokia, Samsung, and LG have paired up with prominent high end labels like Prada, Armani and Ferrari to roll out various business models around this.

The first model is based on collaboration between luxury goods designers and handset manufactures. In this model, fashion houses get involved in the design and specifications of phone while the manufacturing responsibility lies with handset vendors. Examples are LG Prada phone, Samsung’s Giorgio Armani phone, Ferrari 1947 from Vertu.


In the second model fashion houses design the entire product in house with no involvement of handset manufacturers. Fashion houses then outsource the manufacturing to contract manufacturers through a facilitator. Examples are Christian Dior phone, Hummer and Levis phones.


In the third model manufacturers roll out limited edition phones which are just a little more than conventional handsets with designer labels on the outside. An example is Motorola’s D&G and Ferrari editions of RAZR series.



October 14, 2009 at 3:38 pm Leave a comment


Every cosmetic company seems to be cashing in on the recent ayurveda or herbal craze and why not. The Indian cosmetic industry is growing by more than 20 to 25% year on year and consumers today prefer to go the natural way. Awareness of yogic practices, herbs, natural healing etc has increased the consumer’s interest in natural ingredients over synthetic and chemical based products. Almost 60% of the products on shelves today claim to be herbal or include an organic component. Most of these products though claim to be herbal carry a chemical base or some chemical component to make them more effective.


The manufacturers of cosmetics and toiletries have understood this consumer’s penchant for some natural component in their daily use. Soaps and shampoos claim to have fruits, flowers, and herbs but do not highlight the other components present. But there certainly are some companies which produce completely safe and natural products. Consumers today should not be blinded by the recent herbal craze but should check the composition and reliability of manufacturer before investing in a product. As usual put on your shades of sensibility and keep away the glare of marketing.

October 13, 2009 at 12:35 am 1 comment

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