To all the old folks out there, i'm in my late twenties and have a very different view to what is being sprewked in the media today. My focus is on the BRAND Billabong. Billabong has enjoyed a loyal following for the past few decades, and hence has demanded a premium price for its products. When looking through my wardrobe today it was apparent that I owned many products with the label. The thing that really sticks out the most is that all my purchases are QUALITY products. Last week I decided to go to a number of major generic retailers ofering $10 T's & $15 bordies. To put it simply these items where crap! My point is people are prepared to pay more for products if they are of respectable and consistent quality. In the not to distant future I still feel that the major retailers will claw back market share purely based on the amout of poor quality imports out there. Sure lower prices will attract people however will loyalty continue? Now to the BBG brand. I didn't really buy BBG shares today for the name Billabong. I bought for the supply and distribution channels. A lot has been said that the brand is dead! so be it... I really don't think it will be that difficult to create new brands by re-branding trendy and fashionable products. Who had ever heard of Nixon 10 years ago. The value is in BBG's ability to get products out to customers via surf shops, online stores or whatever will be the shopfront of retail in 10years time. Anyone can print a picture or name on a T shirt and try to sell it! BBG's value is buying power through volume, creating fashion trends through clever marketing, and creating a market for its products. Instead over the last few years Billabong has simply met the market. BBG needs to say to young people, 'this is whats cool, buy it'! I really don't beleive this co is dead just tired. And I really dont think we will ever see it in generic shops like Mambo, Hot Tuna, Maddog, ect have gone. After all Billabong is a global brand!
BBG Price at posting:
69.3¢ Sentiment: LT Buy Disclosure: Held
