Hardin MBA Blog

 This week I read this really interesting style piece on WSJ: https://www.wsj.com/style/fashion/high-fashion-or-hunting-gear-why-chic-city-women-are-shopping-at-traditional-sporting-stores-ca4de233?mod=style_feat2_fashion_pos4 The article states that there is a rise in interest in brands that have traditionally been considered entirely functional, and even overtly ugly. Brands like Ariat and Barbour have been taken up by the fashion set for quite some time (I own Ariats and was *this close* to getting my husband to buy himself waxed Barbour jacket). Extending this trend, I've noticed an uptick in my friends showing up to parties in Carhartt jackets. What's going on? From a marketing perspective, it appears that traditionally functional brands are identifying new segments to target. We can see this in a range of products. The ubiquitous Stanley cup once belonged to a brand that made twist-top thermoses that my dad swears by. Today, I can't find the Stanley in the light pink ...

  (Image sourced from Audemars Piguet website) This week, I read this article on WSJ: https://www.wsj.com/business/retail/some-luxury-goods-had-a-better-christmas-than-others-973d5d3d?mod=retail_news_article_pos5  The article states that luxury goods that were marketed to the wealthiest customers did better in the 4th quarter of 2023 than other, more accessible luxury goods. This is interesting to me because theoretically, all luxury goods are very elastic. When there is a contraction in spending, the first place to cut would be unnecessary items like expensive watches. But, the article also points out that the wealthiest only decreased their luxury spending by 3%. Thinking about this, it makes sense. The more a family's income is, the less their luxury items are as a percent of their annual expenditures. So, purchasing a $15,000 watch on a $100,000 annual income is a significant portion of total budget, but that's not the case for someone making $500,000 per year.  ...

During the pandemic, my husband and I purchased a new condo. We decided in our infinite naïveté to complete a DIY renovation of the condo, and needed to buy a car. The story of the renovation I will have to save for another time, but suffice it to say it was lengthy and expensive. But nonetheless, we needed a car.  Since I was about 16, I have wanted to own a Ford Bronco. For those who don't know, the Ford Bronco has a cult following, but was discontinued in 1996 and replaced by the Ford Expedition. The Bronco is famous for being driven by OJ Simpson, but outside of that it was developed as a compact off-road SUV and was known as being a good alternative to a Jeep. During the pandemic, Ford re-launched the Bronco, and demand was immediately higher than production. In part, income was high, shifting the demand curve for all vehicles to the right. Additionally, supply was constrained due to input costs. As a result, supply shifted left, demand shifted right, and prices skyrocketed ac...