Eric Siu explains how strong brands work like moats, creating loyalty that makes people choose originals over knockoffs. He uses China as an example of where this plays out, and argues that building these brand advantages is hard but nearly impossible to replicate once established.
I think one thing that's hard to replace in today's world is a moat. I still really do believe brands are the moat. It's an amazing brand. They have really strong brand loyalty. If you go to China where they sell a lot of knockoffs, and I don't mean this in a bad way, it's just reality, but majority of the people don't want a knockoff. They actually want the real thing. Why? Because they love the brand so much and it's a goal and it's prestigious and they really want it. And I think one thing that's hard to replace In today's world is a moat, and that's the power of brand. And I think that is really hard to replace, but at the same time, I think that's really hard to create as well.
