Originally Posted by Coolboy:
Hehe, I get the sarcasm of your post, but come to think, this is actually a legit business strategy for some brands.
In fact, it reminds me of Ferrari's strategy. The famous Italian exotic car manufacturer don't just make ultra-expensive sport cars and run a F1 racing team, they also sell clothes and fashion accessories, sunglasses, watches, mugs, keychains, toys and books. They are a bonafide lifestyle brand, cashing in on its motorsport reputation and high performance road car image to sell merchandise. As a matter of fact, Ferrari earns more by selling its merchandise than selling the cars it is famous for.
Of course, for that strategy to work, the underlying brand in question has to really stand out in the market and be recognized by a large segment of the consumer base. Ferrari meets that criteria, even people who don't follow F1 or care about its mid engine road cars, know the company produce automobiles that go really fast. Its name is well known enough for the average person on the street to know what the brand stands for.
Now does Cathay meet that criteria? That is a more debatable proposition. Certainly in HK everyone knows Cathay. But HK of course is a small market. Now Greater China is a much bigger market and one can guess many have heard of the airline. But even so, is Cathay's brand image so desirable, that like Ferrari, people would want to associate themselves with the brand? I have some...doubts about that.
The airline has engaged in heavy rounds of cost-cutting in recent years. Its inflight product, once a leading example of premium travel, is now barely distinguishable from rival airlines. Nor is HKer's sense of identity and pride so closely tied to Cathay now, unlike how Italians see Ferrari as a pride of their country. In short, CX is just another airline now.