Recapping the day's news and newsmakers through the lens of CNBC.
At first, Apple's hiring of Burberry CEO Angela Ahrendts is a bit of a head scratcher. A clothing executive moving to a tech firm? But there's a lesson here for other companies: Your quick description of your outfit may not really match its true image with the public.
Yes, Apple's a tech firm. But, perhaps more importantly, it's also a luxury brand. And the definition of luxury has evolved over time, with young, affluent consumers now focused on performance and design, not traditional "status badges," logos or storied history. So if your electronic gadgets have become fashion statements, hire an executive who understands fashion.
Lots of companies cling to their "core" values and skills, but they overdo it at their peril as the marketplace evolves.
"When looked at through the prism of the fast-changing luxury industry, Ahrendts is the perfect hire. That's because Apple has become a luxury brand first and a technology company second."
"This generation of nouveau riche is shunning 'conspicuous consumption' in favor of brands that represent quality, aesthetics and authenticity. These attributes, along with uniqueness, integrity, design and performance, represent today's 'prestige' for these high-end consumers."
— Advertising industry veteran Tim Arnold, in Advertising Age