Branding and Marketing. Saw this coming six years ago. Excerpted from DiGanZi's 2016 Global Brand Letter:
The NRA has called the AR-15 “America’s rifle.” A favorite of returning vets, the model known by the US armed forces as the M16 was introduced in 1959 by ArmaLite. It’s the gun of choice in mass shootings. With an average retail price just above $1000, aficionados typically keep 3 versions of the assault rifle at home. Banned under federal law from 1994-2004, several million of the guns still slumber in the nation’s rifle racks and gun safes, used for hunting, sport, and self-defense. The AR-15 is fun, customizable, affordable and you can build your own, the Lego set of the gun world. But the traditional white male user group is aging and dying off, so now the industry turns its aim on the next generation of younger gun enthusiasts: a modern sporting rifle, easy-to-use, with a soft recoil, and fires a gratifying eight rounds a second. Despite the popularity of games like “Call of Duty”, association with military glamour is downplayed. An article in an industry trade mag cautioned salespeople about certain first-time buyers who will eventually discover they have a lot to learn.
In Russia, consumers can buy a long-barreled firearm only with a police permit, have no criminal record, must furnish a diploma from a gun safety course and a medical certificate that clears them of any mental illness. Civilians are not allowed to own pistols. More than 100 million AK-47s have been sold worldwide, not to mention countless knockoffs, meaning a largely saturated military market. In response, Kalashnikov rebrands, a shift from serving conflict to serving consumers. A new stylized K logo and the catchy tagline “Kalashnikov: Real. Reliable.” positions the brand for sale to hobbyists and hunters. Domestic demand and energy prices help AKs better compete against imported firearms. Due to sanctions, shipments destined for the lucrative US market have been stopped at customs, rerouted to insignificant markets like Venezuela. A diversification into new product lines is under way with Kalashnikov buying up companies that make motorboats and surveillance drones. An eponymous clothing line with 60 retail stores in Russia launched. Weapon buyers are seduced by the bespoke range of special options available, different materials for rifle exterior, colors and finishes. Marx would be turning over in his grave if he knew that the company operates under the blatantly anti-egalitarian principle that no two comrades have the same taste.
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