Branding Just Changed Forever

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0:29Neil Patel:Did you hear how Chamath said that brands are going to zero?

0:31Eric Siu:I did not see that, but I saw it in your list. Okay, so here's his argument. I'm going to name a couple of things here. So he's like, look, you look at Tesla, you look at BMW initially. BMW was like a powerful brand, right? Which is still a powerful brand, but you look at Tesla, they kind of come out of nowhere. But then what happens is what? You got BYD in China, what? Five grand for a car, 10 grand for a car, right? So his argument is that products are becoming cheaper, easier and cheaper to make. and brands that keep bringing abundance are going to win. So if you're continuing to drive costs down, like you look at Tesla, for example, like the Model 3, like the costs are coming down, they're going to continue to win.

1:05Eric Siu:But when you look at a world where like all these things are just cheaper and cheaper to make and everyone's just copying each other, his arguments, it's harder to have that brand power stand for the standard test of time. And so I think he did mention something about Louis, like LVMH, like Louis Vuitton, for example, not being able to stand a test of time. I think there's going to be a couple of those that do, but I do see a world where it's just like if you have a better product, you're just gonna win out. So I don't think brands are gonna go to zero by any means but I do think it's gonna become much more competitive and maybe there's not as much staying power as there was before.

1:38Neil Patel:So I disagree with him. I'm not saying I'm right or wrong but like if you look at BMW, okay, here's a chart from 2007. Is this their stock again? No, because it's European traded and sometimes it's hard to pull up. Overall, they're growing up into the right. They saw a big bump from COVID. It's normalizing. It's a little bit down, but overall it is up and to the right considering how old of a business it is. And most people don't know this. BMW owns one of the most iconic luxury car brands out there, which is Rolls Royce.

2:08Eric Siu:I didn't know BMW owned Rolls Royce. Yeah, it's owned by Rolls Royce.

2:10Neil Patel:Oh, I didn't know that.

2:11Eric Siu:Yeah. So you have a car that you have to take to the repair shop all the time.

2:15Neil Patel:You're talking about a Rolls Royce? I don't own a Rolls Royce. I thought you did. No. Oh. I never owned a Rolls Royce. Oh. Too flashy. I know someone that does. Home hospice.

2:25Eric Siu:They probably make good money. Well, we'll just leave it at that.

2:28Neil Patel:Yeah. Continue on. Yeah. Oh. You're talking about the Nick Shirley stuff where people are just scamming and making free money. Yeah, but I know people that. That sucks. Continue. That people are doing. All right. So if you look at like Louis Vuitton and Chanel, I think their brands have sustained time. They're iconic brands. They're old. I think they're over 100 years old, at least I think LV is over 100 years. I don't know about Chanel. But they're iconic brands. People look forward to them. People don't want their products mass produced. And people will pay arm and leg for them. And the moment their products go cheaper, I actually think their business goes backwards.

3:08Neil Patel:So when Chamath says, you know, brands go to zero, I don't see Michael Jordan's brand with his Jumpman logo. Michael Jordan hasn't played basketball in a long time. His shoe brand is iconic. Has nothing to do with the comfort of the shoe. It's the brand on there. And I know this firsthand because when I was at his celebrity or nonprofit golf tournament or whatever in Vegas years ago, and they told me that the bigger the logo, the smaller the other people's names because they do co-partnerships in branding, the more shoes they sell. Even if it's like with Jeter or Derek Jeter or whoever else it may be.

3:41Neil Patel:I don't just see brands going to zero. I actually see branding being the moat because people feel a certain way about a brand like Apple or Tesla or Nike or Louis Vuitton. And I think that is actually one of the most powerful modes

3:56Eric Siu:because it's hard to build a strong brand. Here, I'll simplify this for myself a little bit. Brands aren't going to zero because what? Charlie Munger said this before. The thing that humans fight over is not necessarily greed, it's envy. Envy is the biggest driver with humans, right? It's very much a status game. So if we all have abundance, we need a way to show each other who's better, who's what? Yes. It's all status driven.

4:21Neil Patel:Yes, it is status driven. Dude, I drive. Yes, we do have one nice car in our family. I drive around in a Honda Odyssey. And when I go around here in Beverly Hills and people see me in a Honda Odyssey, most people don't treat me as nice. Okay. What do they tell you at the valet? At the valet, they usually tell me to pull forward and then they'll take all the other cars. Because they think you're an Uber driver. Yeah, and then they'll be like, are you here to pick up someone? And I'm like, no. And then I'm like, I'm here to get my car valeted. I have meaning here. And then they usually will say some remark, like it's X amount of dollars.

4:56Neil Patel:You sure you want a valet? I'm like, yeah, it's okay. I'll valet. And Eric knows I'm not the best person at parking or parallel parking. At driving period. Yeah. So then I tend to, although I do pretty well with Odyssey. It's also the car's not fast and it doesn't.

5:09Eric Siu:Maybe you learn how to drive better because you have kids now.

5:11Neil Patel:Yeah. But either way, when I ask people in Beverly Hills, I'm like, dude, you should get an Odyssey. and people are like, are you kidding me? I won't be caught dead in that thing. I'm like, but you have kids. You're telling me you'd rather get out of your car, open up the door, have them get in and close the door versus just push a button and your doors slide open. They jump in, buckle themselves in, has a built-in vacuum where you can pick up their french fries or whatever they're eating, their candy or snacks. And people won't do it because they're just like, it's a Honda. And I'm like, who cares if it's a Honda?

5:42Neil Patel:And on top of that, they're like, it's a minivan. Minivans have bad branding.

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6:07Neil Patel:Dude, did I show you the Mercedes new minivan that's coming out? Is it the...

6:11Eric Siu:Remember I showed you the one in Asia? Is this like a version of that? Oh, I showed you the Lexus one in Asia. You showed me the Lexus one. Yeah, which is nice. Okay, but check this image out. I'm going to show you the Mercedes minivan. Oh, wow. So Neil's showing me a fully decked out van. By Mercedes. That looks very tech forward. And look at this. It's like a first class flight.

6:30Neil Patel:31 inch screen TV. It's a first class flight. It's amazing.

6:33Eric Siu:Yeah, how much is that?

6:34Neil Patel:I think it starts at 80 ,000 and then goes up to like 100. It comes out sometime next year. It's electric, 100 and something maybe. Oh, you're for sure getting it.

6:40Eric Siu:For the features. I tried. They're not putting it. You can't put your name on the list yet. it comes out next year.

6:45Neil Patel:I don't think they're supposed to sell like hotcakes. So we're not in a good economy. No, dude, the amount of calls. So I talked to Fletcher Jones and Mercedes in Newport. They have like a spinner division. Don't you have a hookup there? I do. And I was like, how do I get it at cost? So, you know, there's nothing wrong in negotiating, but they were telling me that like the amount of calls are getting for people requesting. So then I started asking the guy questions. Cause I was just curious. I was like, who are you getting the calls from? men or actually I first asked who are most of people calling for this do they have kids or they don't have kids he's like everyone who's called has kids and it's all a woman calling and then I said is it men or women who are asking for this he's like only men he's like we have they haven't had one woman ask for the car so I don't understand okay so I started sending this to some woman or like some of my friends and they send it to their wives and I asked them to send to their wives and get their take but you send it to women to send to their wives I send it to men okay most of my guy friends or most of my friends are guys almost all of them are guys i have some female friends but most of them are guys and then i told them i asked what they thought most of the guys thought it was legit i told them to ask their significant other what they thought and most of significant others that were women said ugly is this a joke or and it's still a minivan what is usually one of those three things seriously yes why and then the fourth one that wasn't as popular was why not just buy an SUV?

8:11Neil Patel:But I have to assume all,

8:14Eric Siu:correct me if I'm wrong here, okay? So Neil's talking to his guy friends. I'm assuming they're all successful, okay? Correct, they're all entrepreneurs. Which means the trophy, let's say they're trophy wise, they're great wives, right? They're used to nice things, right? So they probably want to have the best of the best SUV, like, I don't know. But this is the best of the best for a minivan in the United States. So you would know more than I do. I don't know why they have an issue with minivans because I don't have an issue with minivans. It's the branding.

8:37Neil Patel:and it goes back to the chamat thing you know brands go like a lot of people won't get caught dead driving a minivan because it's a minivan it doesn't matter if it's a mercedes or a rolls

8:45Eric Siu:royce okay i see i see i see the status behind driving a minivan is not cool got it it's not cool it's just like oh this is you know a crappy person's car whatever i'm like i don't believe

8:54Neil Patel:that i drive a minivan i think there's nothing wrong with it guys don't care about anything

8:58Eric Siu:like you didn't care when your 40th birthday like my 40th birthday is coming i don't care if you're like what are you gonna i'm like i don't i don't really care right you don't care after. Did you care when it was yours? You didn't even mention it during the event. That's right. My 40th birthday was, but I did eat ice cream. Yeah. He had double ice cream. It was free though. Remember that? Yeah. So I'm just saying guys don't care about a lot of these things, right? So we just care about practicality and utility, which to us, it's not a status thing, but it is a status thing when we think about our technology, right?

9:22Eric Siu:Actually, no, I just want to use it better. I just want to work better.

9:25Neil Patel:So I think work better is right for some people, but for me, I want the best technology devices. I don't know why.

9:33Eric Siu:Well, I do too. But like, so it needs to be the newest, right? This needs to be working really well and I need to have the best things. Okay, but with your phone, okay?

9:42Neil Patel:The last version of the iPhone works pretty much the same way as this one. Would you agree with that? So why do you really need the new one? Well, first of all, I get these for free. Okay, some of the stuff you pay for like the iPads and stuff. Yeah, I do. But why do you need the newest one

9:56Eric Siu:when it works almost the same? So no, this one is the same. So I haven't upgraded this one, but now I want the latest Mac Ultras because I want the memory for local infrastructure so I can run my company more.

10:06Neil Patel:Totally agree. That's why I didn't ask you about the actual computers. But like sometimes the technology, cars, you want to try different cars or whatnot. Your Tesla worked fine. You ended up getting the Porsche. I looked that up the other day. I haven't.

10:19Eric Siu:So here's the thing. When I lived in Miami for two years, I didn't have a car. All I drove was Ubers. And when I came back, I needed a car. So that's why I have this. and then the next one will probably depending if kids pop out or anything i'm not saying any kids are gonna pop out but like i would consider it a video fast so yes i do think to some extent as guys