After Barcelona and Valencia, both opened 2011, Chopard expanded in Spain with its third ...
read more
American hotel chain, Thompson Hotels, known for its contemporary luxury hotels in the US, ...
read more
Despite the negative impact of a strong Franc, Swiss watch exports reached a record 16 billion ...
read more
Talking to The Economic Times, Mr PRS Oberoi confirmed his company tapped renowned American ...
read more
World's leading luxury group, LVMH announced record results for 2011, with salea reaching ...
read more
Italian luxury house of Loro Piana, known for its iconic cashmere ready to wear and accessories ...
read more
Luxury fashion brands and diversification
Opportunities 17 July 2010
When Armani launched its branded chocolates and flowers more than 5 years ago, many have criticized the move saying it would lead to a dilution of the Armani brand. In time, these have proven successful especially because of their lifestyle component which they convey. Clients would buy a box of Armani chocolates and an Armani flower arrangement especially as a gift, when going to a special event. Now within the Armani Hotel in Dubai the chocolate and flower collections blend perfectly with the environment, recreating a genuine, unique Armani Lifestyle. Quality is playing a crucial role in these collateral lines and this, has recently been recognized by Armani which signed a licensing agreement with top premium Italian chocolate manufacturer Venchi.
There are also negative brand diversifications, especially in mobile phones. The Armani/ Samsung co-branded mobile phone had never become a lifestyle object. The reason ? The Armani mobile phone was sold at an average affordable price and distributed widely in any type of retail, from a small kiosk to large IT stores, along with all other phones. The same misfortune followed the Prada / LG co branded mobile phone. The fact that technology was not a primary feature of the mobiles phones made these phones less attractive to more and more savy tech consumers.
This explains why Louis Vuitton skate board or Hermes equestrian lines have been in such big demand, both products being an integral part of a particular lifestyle. The fact such collections are available in few select stores in limited editions is also adding to the exclusivity factor. Would Louis Vuitton or Hermes be able to sell chocolates or flowers ?
to be continued Tuesday 20 July