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    What Can The Secondary Line Bring To Armani?

    2015/4/10 9:29:00 6

    Sub LineArmaniBrand Strategy

    "My design follows three golden principles: one is to remove anything unnecessary; the two is to pay attention to comfort; the three is the most gorgeous thing is actually the simplest." This is Giorgio Armani's evaluation of his works.

    Look at his design, it will be clear that the decoration function is higher than the practical design will not be Armani's favorite. Then, as the Armani group under family control, why should we add so many secondary line products to ourselves? What have these sub lines brought to the group?

    The first thing to point out is that the sub line is almost everyone, but there are more or less, the price level of the secondary line and the difference of the operation mode of the sub line.

    For example, Prada's secondary brand MiuMiu, targeting younger customers. But unlike Armani, MiuMiu has no big difference between its price and creativity and its main line, only to expand the scope of target consumer groups and cultivate its future customers. Armani's vice line is clearly not the way.

    There are also some luxury brands who focus on the long-term future and maintain the prestige of the brand with great care. At most, we should develop some temporary temporary lines and attach enough importance to the design of the sub line so as to reach the height and level of the brand, and finally sell it in its own stores. If these brands enter low-end products, they will get massive attention and get very high profits. But the consequences of doing so are right. Brand value The devastating blow has little chance of returning to high-end brand positioning.

    Abundant Secondary line As a supplement to the main line, it is indeed profitable, but in the long run, the development of downstream market will do more harm than good. But Armani, as a living case, refutes such a view.

    Luxury consumers constitute 20% of the rich and 80% of the middle class. The latter does not hold an optimistic attitude towards the future economic situation. It is this mentality that encourages luxury goods to develop the concept of "cheap and extravagant". These brands have big names. Designer The aura, which mimics the elements of luxury, has a close connection with the public. Of course, the price is relatively cordial.

    In the early 80s, with the promotion of industrial production, all luxuries began to seize the emerging markets outside Europe, Japan and the United States. For new markets without nobility, luxury goods are starting to use new strategies to attract the middle market. People may not spend as much as $5000 on a suit, but they will rush into Armani Exchange or Armani Jeans to buy their desire for a rich life.

    According to a survey by Bain consulting firm, the market value of luxury goods in 1995 was 77 billion euros, and its market value increased to 170 billion euros before the financial crisis in 2007. Soon, the value reached 200 billion euros. There are two reasons for such rapid growth: the expansion of product supply and the increase of brand stores. There are two forms of the former, one is the development of the sub line brand, the other is the extension product area.

    This is what Armani is doing. These various kinds of secondary lines make their market value grow rapidly. Different sub lines for different groups of people, their income is different, style is different, the demand for consumer goods is also different; and downstream secondary lines, such as cosmetics, glasses, etc., then a lot of demand for lower prices, the dream of luxury goods dream of the group.


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