One of the saddest things that has happened in today’s world of megacorporations and marketing is the dissolution of the once-indivisible tie between the Company and the Brand. For example, when you buy something that says Acme on it, you would naturally assume that it was made by the Acme Corporation. Or, the more astute consumer might even figure that a contractor made it while the design and quality control were ultimately left to Acme’s discretion.
Thanks to the shift in the brand’s role from resource to commodity in the 1990′s, those assumptions are no longer valid.
Take, for example, the case of GT Bicycles. Until the late 90′s, GT bikes, famous for their unique design and sturdy construction, were hand-assembled at GT’s California factory. As they were a specialty item, they were somewhat costly and sold only through knowledgable dealers. In 2001, the company went bankrupt. Its assets were purchased by Pacific Cycle, which now manufactures crude lookalikes of GT bikes in China complete with GT’s original logo. These bikes are sold at Wal-Mart to unassuming consumers. (Pacific Cycle also sells bikes labelled with the “Schwinn” brand, even though the storied Schwinn Corporation also went out of business in 2001.)
The most
egregious case in my book is that of Westinghouse. Perhaps you’ve seen
Westinghouse light bulbs for sale in your grocery store or hardware store. The
packages indicate that they are made by the “Westinghouse Lighting Corp.” Wow,
you might think—the famous Westinghouse Corp. has been in business for 120
years—and yes, there’s that legendary Paul Rand
logo to prove it! Wrong. The Westinghouse Electric Corporation
dissolved in 1997 when its assets were puchased by CBS/Viacom. Even so, they
had already sold their light bulb manufacturing business to Philips in the 1980s.
The real crime in the case of the Westinghouse light bulb is that, while there once was a real Westinghouse Corp. that made very nice light bulbs, today’s “Westinghouse” light bulb is not made by Westinghouse at all, but by a random Chinese company. Someone in the USA buys the Chinese bulbs in bulk, puts them in Westinghouse boxes, and, thanks to the ignorantly brand-hungry consumer, reaps the profits from a long-deceased company.
In the modern parlance, this practice may be called “brand recharging.”

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