What Is The Role Of Luxury Brand Burberry Sub Line?

The latest annual mid-term earnings report released by Burberry 10 showed that in the first half of September 30th, Burberry revenues totaled 1 billion 105 million, slightly higher than the 1 billion 100 million pounds in 2014, but did not meet analysts' expectations of 1 billion 160 million pounds. The total revenue of retail business is 774 million pounds, although it has increased by 3.8% over the same period in 2014, it is far less than the target of 8.18 billion expected by analysts. The adjustment of brand consistency may also be one of the ways to boost Burberry's performance.

Burberry, the old British brand created in 1856, has many sub brands. Burberry Prorsum, founded in 1904, is a high-end customer group targeting in the pursuit of fashion, mostly for the show, the price is the highest, the price range is between 2000 US $~1 million (about 12 thousand yuan ~7 yuan), Brit is only five years old, it is a brand low-end line, positioning young people, and the style is more popular and casual, it is also more suitable for everyday wear, the price range is between 750 US dollars and ~2500 dollars (about 4800 yuan RMB ~1.6 million); London series is Formal wear The location and price are mainly between Prorsum and Brit. The tailoring is more fitting and the design is more conservative. Burberry also launched a sports series Sports for young people aged 18~24. Sports's watches and perfume were favored by male consumers in the past.

In fact, the earliest concept of the auxiliary line brand is Armani. Since the 1981 Giorgio Armani tried to create a sub line brand Emporio Armani, quite a number of fashion and luxury brands have launched corresponding products. Secondary line series 。 They use the main line as a halo and a keynote to entice young consumers who are not yet able to afford affordable luxury goods.

Zhou Ting said: "the price of the sub line brand and the more youthful image attract more consumers, which greatly improves the sales of the brand. At the same time, they can also rely on the luxury aura of the main brand to maintain a higher profit margin. However, too many complicated brand lines make consumers' cognitive barriers to product line positioning. If the management is mishandled, the risk of dilution of the entire brand will be faced, and only consolidate. Main line image We can reverse the situation.

"Brand extension is a good marketing strategy in the short term, which is likely to seriously affect brand image in the long run." Vincent Bastien, a senior expert in the luxury goods industry, wrote in the luxury strategy.

Although Julian Payne has cut off three sub lines this time, Buberry spokesman Julian Payne said that the company will not lay off staff, and the scale and price of the entire product will not change. The name will change. The shop names will also be changed before those shops called Burberry Brit-only will be converted to Burberry.

In fact, for Burberry, its market layout changes have also been seen for a long time. It has closed the sports product line Burberry Sports. In 2015, it renewed the new contract with SANYO chamber of Commerce in Japan, decided to withdraw the distribution rights, and shut down the two series of Burberry Black Label and Burberry Blue Label for the Japanese market. 45 years ago, Burberry signed a licensing agreement with SANYO chamber of Commerce in Japan, limiting the launch of the young sub line marking the black/blue label in the Japanese market. Even the UK as a headquarters did not set up two series of retail services.