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May 25, 2018

A lesson about pricing power

If you ever wondered how much pricing power matters in the luxury segment, here's a hint: Richemont, the owner of brands like Cartier and Montblanc, destroyed / de-assembled watches worth close to 500 million (!) Euros during the past two years - to avoid having them in unwanted sales channels at discount prices.

https://www.theguardian.com/business/2018/may/18/richemont-destroys-nearly-500m-of-watches-in-two-years-amid-buyback-policy