no data but I presume that for those items, there might have been a thinning of brands with the lesser known brands finding it hard to sustain because of the reduced demand and the potential discounting from better known brands. Probably no arbitrage unless the supply dropped a lot as well.
Are you saying that the conclusions you draw for Logitech will be true even after the demand spike goes away (say, once ppl. don't need to video conference as much)?
the arbitrage will go away but Logitech might understand their brand leverage more, and might increase their retail price. The positive signals for brand and product strength will give them more confidence around pricing at a premium.
Great article!
Cameras, I presume, are among the (minority) group that has seen a positive demand shock. Any data from other items that have seen a demand drop?
no data but I presume that for those items, there might have been a thinning of brands with the lesser known brands finding it hard to sustain because of the reduced demand and the potential discounting from better known brands. Probably no arbitrage unless the supply dropped a lot as well.
Are you saying that the conclusions you draw for Logitech will be true even after the demand spike goes away (say, once ppl. don't need to video conference as much)?
the arbitrage will go away but Logitech might understand their brand leverage more, and might increase their retail price. The positive signals for brand and product strength will give them more confidence around pricing at a premium.