Luxurious stretching: a practice which has changed the sector
Stretching has allowed luxury companies to grow faster, without being limited to growth within their luxury lines, or staying restricted to progress in demand to get the products of their original trade. Though many have departed from high-class, some have retained that status for their primary items.
The practice of stretching out is motivated by financial need. While there is a large margin in luxury things, there is a low volume, and maintaining the firm's success can be a challenging proposition. Advancing or stretching to lower marketplaces provides a stable stream of income to sustain the rand name.
It's also worth noting that, on the source side, the financial cost of stretching or perhaps extending the brand name is less: it does not need the brand to have the financial strength to set up extra manufacturing functions, only to have the brand strength to make goods appealing whilst licensing others to produce the items.
The licensees typically have manufacturing capacities and competencies, but simply no brand reputation in the market nor the proficiency to build your brand. They benefit from borrowing around the cachet of any brand that others have worked to build.
Besides of finances, the benefit towards the brand of extending is that it builds mass-market awareness of the manufacturer, by means of marketing the extend products; it creates visibility simply by placing its marks inside the hands of more people; and through products just like cosmetics, that brings a feeling of intimacy through physical contact or closeness.
All of this rss feeds the jealousy of the primary line: a woman who buys a perfume that has a luxury brand develops an appreciation pertaining to the brand that may carry her into getting clothing or other products. It may also serve to bring foot-traffic into the specialist where individuals who seek the perfume may see the clothing and interact with the staff and other customers.
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