Archived posting to the Leica Users Group, 2013/05/25

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Subject: [Leica] PESO: RG Lewis and Leica M frustrations
From: jayanand at gmail.com (Jayanand Govindaraj)
Date: Sat, 25 May 2013 21:28:58 +0530
References: <CDC6CF5D.961DE%jkfyao@gmail.com> <41F24D85-FD4E-444A-A6F8-74C326A1142A@frozenlight.eu> <CAH1UNJ0AO27H3UHor3ZH5cx_3poLhRe8B49PiVKMUGeU0=wcBw@mail.gmail.com> <842D1852-FA13-4160-B737-31913182FA18@gmail.com> <CAE3QcF5RGOJQx1RLHJpNKA35k4q-zFU6kMDK6mggWZiQB2Q0Xg@mail.gmail.com>

Why do you always see a realistic assessment as a swipe? Is it too difficult 
to see things for what they are? There is no swipe intended, in fact, I have 
consistently maintained that their focus on China and Russia is correct, 
because there are not enough buyers like you to otherwise keep them in 
business. To illustrate the point, reflect on just how many here on this 
Leica list actually intend to buy a M240 new. Half a dozen? A dozen at the 
most? This too, on a list largely consisting of members who have shot Leica 
equipment for decades.

To get to Steve's point - it can go either way - to give an example of an 
aspirational brand that has maintained quality look no further than Rolex, 
for one that has sacrificed quality for bling, look at Montblanc pens. Both 
to me are identically positioned in the lower echelons on the luxury goods 
market as Leica is right now, inasmuch they are the first luxury brand that 
people tend to buy in their respective niches.

Cheers
Jayanand

Sent from my iPad

On 25-May-2013, at 7:51 PM, Geoff Hopkinson <hopsternew at gmail.com> wrote:

> I don't know if this translates well. In Australia we call this the " tall
> poppy syndrome". Some people enjoy taking swipes at anyone successful. Good
> on them. Of course it is in our interest too that Leica Camera does well.
> They make products that some of us value a lot for the photographs that we
> can make with them and for the experience of using those products to
> achieve that, They can sell as much as they want to anyone that may value
> their products for whatever reason they wish. Why would you care if you
> value Leica for the photographs you can make?
> 
> 
> *Breathe in, breathe out, move on* -- Jimmy Buffett
> 
> Cheers
> Geoff
> http://www.pbase.com/hoppyman
> 
> 
> On 26 May 2013 00:04, Steve Barbour <steve.barbour at gmail.com> wrote:
> 
>> 
>> On May 25, 2013, at 6:55 AM, Jayanand Govindaraj <jayanand at gmail.com>
>> wrote:
>> 
>>> Nathan,
>>> It has taken you a very long time to realize and accept this. I was sure
>> of
>>> the strategic shift in marketing with the M8 itself - it was so obvious -
>>> the marketing, the choice of magazines for advertisements, the
>> positioning,
>>> the advertorials, etc. With Blackstone's entrance, it was doubly obvious,
>>> especially when the ostensible reason for the investment was to spread
>> the
>>> Leica Boutiques, not develop new products. IMHO, it is great for them,
>>> because as in all MOJO businesses, the margins are obscene, and as Joseph
>>> points out, there are enough people in the emerging world to pay for the
>>> bulk of the production (not only the M series but the S series as well).
>> It
>>> is not dissimilar to what the Bordeaux market has gone through in the
>> last
>>> few years, and what the Burgundy market is going through now - though I
>>> believe that over 50% of the bottles sold in China are fakes, because as
>> in
>>> all such markets, the labels matter (Mojo), not the intrinsic quality. It
>>> will be interesting to see what will happen to Leica as growth in China
>>> keeps slowing down, as is bound to happen. Remember, this will shaft the
>>> Russian  market as well, because energy prices would nosedive. As far as
>> I
>>> can see, they have alienated most of their traditional clientele, bar a
>>> few, and I wonder where they would go to make up the volumes. They just
>> do
>>> not have a diversified enough customer base to withstand a big topline
>> hit.
>>> It is going to be interesting. The best thing for all of us would be if
>> all
>>> those unused Leicas in China come on the used market at the same time, as
>>> herd behaviour takes hold, and cause a glut there.
>>> 
>>> I would look to a Leica IPO for Blackstone and Kaufmann to cash out
>> sooner
>>> rather than later, if growth in China keeps drifting down.
>> 
>> 
>> Jayanand,
>> 
>> jewelry for rich clients who don't use it, or who use it with minimal
>> knowledge of its qualities and capabilities, makes the future sound rather
>> ominous.
>> 
>> What does this model predict in terms of future optical quality?
>> 
>> 
>> Steve
>> 
>> 
>>> 
>>> Cheers
>>> Jayanand
>>> 
>>> 
>>> On Sat, May 25, 2013 at 6:13 PM, Nathan Wajsman <photo at frozenlight.eu
>>> wrote:
>>> 
>>>> Right. So Leica has made a strategic shift from the photography business
>>>> to the jewelry business. Fair enough, the Blackstone people obviously
>> know
>>>> where the money is. But then they should be up front about it so that
>> the
>>>> photography dealers can switch their focus to companies that actually
>> are
>>>> interested in supplying photographers.
>>>> 
>>>> Cheers,
>>>> Nathan
>>>> 
>>>> Nathan Wajsman
>>>> Alicante, Spain
>>>> http://www.frozenlight.eu
>>>> http://www.greatpix.eu
>>>> PICTURE OF THE WEEK: http://www.fotocycle.dk/paws
>>>> Blog: http://nathansmusings.wordpress.com/
>>>> 
>>>> YNWA
>>>> 
>>>> 
>>>> 
>>>> 
>>>> 
>>>> 
>>>> 
>>>> 
>>>> 
>>>> On May 25, 2013, at 2:28 PM, Joseph Yao wrote:
>>>> 
>>>>> Leica have been shipping sufficient quantities of the new M240.  They
>> may
>>>>> not have been sending them to their 'traditional' markets where their
>>>> profit
>>>>> margins are lower.  You will see plenty of M240 in, for example,
>> Beijing
>>>> and
>>>>> Shanghai, where the going rate for one is US$12,000 to US$13,000.
>>>>> 
>>>>> A handful of limited production silver chrome MM have been made for the
>>>>> Chinese market, and available at RMB 1,581,000 each, approx.
>> US$258,280.
>>>>> 
>>>>> Joseph
>>>> 
>>>> 
>>>> _______________________________________________
>>>> Leica Users Group.
>>>> See http://leica-users.org/mailman/listinfo/lug for more information
>>> 
>>> _______________________________________________
>>> Leica Users Group.
>>> See http://leica-users.org/mailman/listinfo/lug for more information
>> 
>> 
>> _______________________________________________
>> Leica Users Group.
>> See http://leica-users.org/mailman/listinfo/lug for more information
> 
> _______________________________________________
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In reply to: Message from jkfyao at gmail.com (Joseph Yao) ([Leica] PESO: RG Lewis and Leica M frustrations)
Message from photo at frozenlight.eu (Nathan Wajsman) ([Leica] PESO: RG Lewis and Leica M frustrations)
Message from jayanand at gmail.com (Jayanand Govindaraj) ([Leica] PESO: RG Lewis and Leica M frustrations)
Message from steve.barbour at gmail.com (Steve Barbour) ([Leica] PESO: RG Lewis and Leica M frustrations)
Message from hopsternew at gmail.com (Geoff Hopkinson) ([Leica] PESO: RG Lewis and Leica M frustrations)