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Whether The Main Line Can Be Independent &Nbsp; The Status Quo Of The Secondary Line Of High Fashion Industry Has Been Acquired.

2012/2/29 8:36:00 3

Mergers And Acquisitions In Fashion Industry

The message that D&G will merge into Dolce &Gabbana is fashion There is a huge wave. High fashion retailers have different opinions. But will consumers care about the fact that D&G is no longer there?


Dolce &Gabbana recently announced that its young vice line D&G will be merged into the main line brand, which means that the relatively low price of D&G will soon disappear. This news makes many retailers at a loss. The great success of D&G has led to its popularity. Judging from the mainstream values, a luxury brand may lose its prestige once it starts offering cheaper products.


However, when a price tag of $300 and a price tag of $3000 are also attached to the label of Dolce &Gabbana, how many consumers will be confused when they are hung up next to it? Jim Taylor, a luxury goods consultant, said: "Dolce &Gabbana has always been expensive, so its position in the consumer's mind is bound to decrease."


Others look at this risky behavior from another perspective: as consumers become more sophisticated and confident in their fashion awareness, they are no longer stubborn and demanding in terms of classification. Latest fashion Single product mix and match. What people really care about is the designer who designs the fashion he bought, and the fact that he has a completely different product line for luxury goods is also readily accepted.


Taylor believes that the brand launch of different grades of product lines is annoying for high-end customers, and pointedly pointed out: "what is more insecure for a wealthy customer than that of a brand that he likes and follows?" he suggested that executives of luxury companies should think twice. He insisted that all companies must choose one of the two strategies, or take the same line as Michael Kors, Ralph Lauren and other brands to provide different levels of deputy cards, so as to maintain a high attitude in order to cater to the 20% core customers who do not consider price factors.


In 1966, after Yves Saint Laurent launched RiveGauche, the fashion industry only had a "secondary line". Until then, such product lines have been figuratively referred to as "bridge lines", because their prices are close to the people and are bridges to consumers and big designers.


Donna Karan's DKNY, Marc Jacobs's Marcby Marc and Prada Miu Miu provide customers with a relatively young and casual price choice.


Now, the designers of the new generation have planned to launch the secondary brand when they first built the high-end line, because the latter did get huge sales by relatively cheap pricing. Moreover, the secondary line products also have a higher sales net interest rate because they can appropriately reduce the quality of the clothing and the complexity of the process. For example, the lining can choose polyester material instead of silk, and the treatment of joints should not be so exquisite. Therefore, the auxiliary line is usually produced at lower labor costs.


Jason Wu revealed a year ago that it plans to launch a sub line brand. Panichgul Thakoon has launched a sub line Addition, and for Akris, AkrisPunto has become the backbone of brand profitability. Versace's sub line Versus was shut down many years ago, but it came out again last year, and invited the UK's popular designer Christopher Kane to take charge.


Interestingly, Versus even has a better reputation than Versace.


Last month, Dolce &Gabbana announced the merger decision to the major retailers by letter. The plan will come into effect in 2012. Relevant people have confirmed the matter recently. D&G is about to close.


Although retailers are still confused about how to deal with D&G's incorporation into Dolce &Gabbana, will consumers notice the fact that D&G is no longer in existence? Most of them routinely believe that all products designed by Stefano Gabbana and Domenico Dolce are called Dolce &Gabbana, whether the trademark is written with D&G or &Gabbana.


Ask the men who wear CK underwear. They will tell you that CalvinKlein is 80%, just as most people think DKNY is the abbreviation of DonnaKaran brand, but ignores that it is actually a more casual product line. Are the sweaters with green, purple and black signboards on your body RalphLauren or RLX or Polo? Of course, they all come from RalphLauren, because Mr. Lauren's shop sells different grades of product lines.


So maybe only the brand and the brand. Retailer We really care about the difference between collateral trademarks. They want to set store pattern and display mode accordingly, such as Donna Karan in the "designer fashion" floor, while DKNY is sold as "contemporary series". Such as Bloomingdale Department store Stephanie Solomon, the fashion director of the company, said that for most consumers, the sub line only means "a road leading to the brand".

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