When purchasing a towel from a supplier in China, NCS can buy large plain towels for about 0.80 each before freight charges are assessed. Towels are commodities where the producers churn the product out and eke out a marginal profit.When NCS purchases a towel from a toy distributor in Japan, we pay about $43 each before shipping charges. Why the huge price disparity?
Answer: Japanese companies own or license intellectual property which adds substantial value to commodities. A plain towel is worth 80 cents. A towel that's emblazoned with the likeness of Yoko Ritona or another pop-culture heroine is worth 53X that amount. Hint to self: Invest in IP.
Preorders for Cospa's Yoko Towel are welcome to ship in October 2008 at JPY5000 or US$49.90. The towel measures 40cm x 80cm in area and is made of cushiony cotton.
No comments:
Post a Comment