Bling, bling…Part II

Their latest handset, launched in August this year, is the Ascent Ti, made of high-gloss carbon fibre bearing a sandblasted titanium surface. How much does it cost? A whopping $9,800.

What are the prospects of its success? According to a survey done by the Luxury Institute, HNWIs are now looking for real value, not just badge value. Genuinely superior quality, craftsmanship, exclusivity and brand heritage will become increasingly important for luxury brands, and those who deliver on these fronts exceptionally well will enjoy the fruits of their labor.

As proof, sales of British luxury car Rolls-Royce are looking up despite the recession, while sales of Mercedes and BMW models are taking a nose-dive. Similarly for luxury fashion brand Hermès, whose hand bags start at $7,000, sales are up 10 percent, while the demand for Coach’s $325 handbags has dropped.

One can only guess what the demand for the latest Vertu Signature range will be. The “sea of sapphire” color used on its surface goes through a two-week treatment in a hot furnace at 2,000C°. This material gives the case of the phone an astonishing hardness, making it scratch proof against any material except diamond.

What does this mean? Luxury mobile phones will have to prove their added value to be able to survive and thrive in today’s market; simple badge value will not quite cut it.

Abdul Karim is the strategy director at Luciola

First seen in Gulf Marketing Review magazine.