Vertu – luxury phone produced by Nokia
It seems that Iphone defeated Nokia which used to be the king in mobile market. While the marketshare of Nokia decreasing, their luxury division Vertu, continues to succeed.
According to Businessweek, Vertu has seen “high double-digit sales growth” since the beginning of 2010. While Nokia cut 7,000 employees to reduce costs, Vertu’s staff increased by over 50 percent since 2009.
Why Vertu succeed ? Think about would you buy vertu if you had the money? Would you like to spend over $5000 dollars on a phone?
I think the success of Vertu is based on its target consumers, a small group of people. This group of people can creates huge value for the company. The phone is low-tec and most of them even don’t have camera. However, because it is made of rare materials and precious jewels. It is popular in status-conscious emerging market. Additionally, the brand seems separate from Nokia and i think it is good to do that. For these target consumers, exception and less is what they are chasing for.
Source:
Nokia’s Bright Spot: Luxury Handset Maker Vertu
http://www.businessweek.com/magazine/nokias-bright-spot-luxury-handset-maker-vertu-09292011.html