Second Tier Brands Of Luxury Goods Are Far More Volatile Than They Used To Be.

In limine,

The sub line brands such as Emporio Armani, D&G and Marc by Marc Jacobs have become the ideal way to enhance brand awareness, attract young consumers and create new benefits due to their inherent designer halo and low price.

But in recent market cycles, the market position of secondary lines has changed dramatically.

First, the sub line that used to occupy the middle reaches of the market must compete with light luxury such as Michael Kors and Tory Burch, while the latter positioned the product as the real main line.

"The sub line has been surrounded by 'three sides'," Luca Solca, chief researcher of Exane BNP Paribas, described. "In addition to light luxury, consumers can also choose to buy more advanced brands like 3.1 Phillip Lim and Alexander Wang, or designer and large retailers."

"Mario, Ortelli, senior vice president of luxury goods in Europe, Bernstein, analyzed." these latecomers are more productive and more competitive, and the product cycle is very fast, keeping up with the latest fashion.

He continued, "only a few brands with strong brand influence, enough product lines and future potential can maintain a single brand store well, such as Marc by Marc Jacobs and Emporio Armani, without fear of competing with the brand in the market.

"

Under pressure, luxury goods

Secondary line.

Prada repositioned the previous sub line Miu Miu to be the same product of Prada.

When Domenico Dolce and Stefano Gabbana stopped operating D&G in 2011, the brand profit was at that time, the annual income was about 400 million euros, but the two decided to put the product line in the main line.

"Next season, D&G will go to Dolce&Gabbana, and the whole series will have more advantages and vitality."

Of course, the merger also abolished the staffing of D&G and the cost of fashion shows, marketing activities and stores.

"Dolce&Gabbana has made such a change, and other brands have streamlined the brand mix.

If the sales performance of sub brands can not maintain corresponding fixed costs, the risk of loss is self-evident.

Solca said.

"The smaller the sub business, the harder it will be to maintain the huge cost of the business behind it: the design team, showroom, sales activities, show and flagship store."

In fact, with today's consumer shopping rhythm from top luxury products to popular mainstream products, fashion brands are also willing to expand brand segmentation and increase product lines under a parent company.

The market also appeared Louis Vuitton coin purse, Fendi fur ornament bag bug.

Some brands incorporate low-priced products into the main line, while others sell sub line brands in the same store to reduce a large number of additional store expenses.

Consumers will be confused.

"Sometimes it is not very clear which is the secondary line and which is the same line product."

"These products are displayed in a store," said Lydia King, a Selfridges clothing buyer at the London department store chain. Our sales and service staff need to explain specific categories to customers.

We are concerned about the needs of consumers.

For consumers, is there any need to separate the finished products from the secondary line, or it will confuse the main line?

"

One thing is clear: these extensions are not as attractive to consumers as they used to be.

"Consumers are very clear that if there is no independent brand identification on the secondary line, the whole series is just a tool to make money for the brand."

King continued, "8 years ago, as long as the brand produced a large number of sub line products, PR activities could only focus on the mainline.

But today's market is no longer the case.

Consumer awareness has been raised, and the independence of the sub line products is higher.

For the sub line, the key is to define its own unique fashion logo.

"This must not be driven by business, but rather focus on building a unique brand identity and integrating the corresponding design elements to provide consumers with more valuable and cost-effective products."

MatchesFashion.com's buyer director analysis.

In the long run, if the secondary line is well balanced with the mainline, it will be independent and powerful.

At the same time, a very effective alliance with the mainline will develop very well.

But for most brands, it may be more practical to combine low-priced products into the main line: to be honest, the secondary line adds to the cost of the brand, causing confusion to the consumers, and finding the reason to stick to it is really more and more difficult.