Armani Close Down The Secondary Line Store Brand Value Is Diluted By The Auxiliary Line.

According to the world clothing shoes and hats net, Armani announced the streamlining.

After that, the sub line brand Armani Exchange became the first "moving knife" object.

Armani has successfully surrendered its eye-catching sales data with many secondary lines.

However, with the change of market environment, various secondary lines have brought Armani a crisis of dilution of brand value.

Against this background, Armani had to choose to cancel the secondary line.

It is worth noting that Armani also chooses to streamline the product line.

The group is growing.

Armani shut down sub line stores

A few days ago, Armani Giorgio Armani, the founder of luxury group, announced that it would streamline its brand. From 2018, it will leave only three main lines: Giorgio Armani, Emporio Armani and A|X Armani, Armani Collezioni and Armani will be merged.

Shortly after the announcement of the brand reduction strategy, the Armani Armani Exchange was closed in most stores in the UK, including the largest flagship store in Armani Exchange in London.

According to the world clothing and shoe net, the large-scale closure is related to the strategy of brand reduction.

Statistics show that Armani Exchange is targeted at Armani.

The trend group, launched in 1991, now has about 17 stores in China.

The reporter interviewed some Armani Exchange stores on closed shop, and the staff said that the current Armani Exchange closed shop in Britain did not involve the Chinese market.

Reporters also further verification of Armani, but as of press time, the other side did not respond.

Even as the originator of the sub line industry, besides Armani Exchange, Armani's subsidiary line brands include Amani Junior, Armani Jeans, Armani Casa and so on. The products are made from advanced tailored garments, casual wear, home clothes to children's clothing, and so on, and the product subdivision degree is very high.

In 2015, Armani launched a new sub line called "New Normal".

For a wide range of brands, Giorgio Armani has said: "I prefer to make a different attempt in detail than the sweeping reform of fashion."

Brand value diluted by secondary line

However, with the cooling of the luxury market, the driving force of Armani's subsidiary line strategy has begun to become limited.

At the same time, a wide range of sub lines brought to Armani the dilution of brand value crisis, which has become the fundamental reason for Armani to streamline its brand.

In 2015, the growth rate of Armani has shrunk to 4.5%.

In announcing the new brand strategy recently, Giorgio Armani further revealed that group revenue declined by 5% in 2016.

This is also the first negative growth of Armani group's revenue in the past three years.

Although Armani tried to continue the old way in 2015 to launch new sub line brand gold absorption, but in 2015 and 2016's performance, New Normal failed to save the overall decline of Armani.

Insiders pointed out that Armani's secondary line brand production level is not as good as the first-line brand, while Armani also has some problems in the control of product quality.

There are also people familiar with the matter, and there is a grey area in the domestic luxury goods dealers' private ordering industry, which has also become the reason for some regular stores to expose fake goods.

Under the influence of various factors, the value of Armani's sub line brand has not been as good as before.

Zhou Ting, President of the Institute of wealth and quality, clearly stated that the strategy of Armani's sub line has diluted the value of the brand to a certain extent.

"Armani's best brand, which is in line with brand positioning and brand value, is still the core brand Girogio Armani.

Although the strategy of Armani's subsidiary line has diversified its products in the past years, it has also diluted the product value to a certain extent, so that Armani is regarded as a fashion brand rather than a high-end brand by the outside world, which is not consistent with Armani's expectations.

Zhou Ting analysis said, "Armani needs to concentrate more on developing more valuable product lines, so we need to cut off these sub lines to focus on core products."

Luxury to welcome "downsizing"

As an important contribution to the group's revenue, Armani's streamlining of the brand will inevitably affect the income of the group in the coming period.

But insiders pointed out that this practice is more beneficial in the long run.

In recent years, luxury brands like Armani's products have been increasing.

After developing the secondary line to seize the market and boost its performance, luxury brands ushered in the "downsizing tide".

In 2015, the British luxury group Burberry announced the closure of the three major sub line brands, Burberry Prorsum, Burberry London, BurberryBrit and BurberryBrit, and then "downsizing" again in 2016. In 2016, the French designer, the same name luxury brand Rykiel Rykiel, announced the closure of the secondary line brand Sonia by Sonia Sonia, and the earlier closure of the brand.

In addition, a number of brands including Kate Spade and Michael Kors have removed the sub line brands.

"Compression brand line, return to the original high-end image positioning, precisely for these consumers, the future of the brand is necessary."

Yang Dayun, President of the excellent international fashion management group, said: "the sub line brand used to be an extension of the luxury brand value, but now the market is different. The young consumers with consumption ability are updating the iteration. The product line is stretched too long and the coverage is too wide, which will affect the consumers' cognition and loyalty to the brand."

However, for Armani, as a subordinate line of 70% of the secondary line brands, the "Big Bang" is bound to affect the performance of the group within a certain period of time, but Yang Dayun believes that this is only a temporary impact.

"In the long run, the development of Armani performance is beneficial."

The twice cut product line Burberry has finally improved in the latest three quarter report, and retail revenue grew by 4% over the same period last year.

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