Luxury Brand Chlo é Will Phase Out Its Sidelines In The Next Three Years

Recently, Riccardo Bellini, chief executive of Chlo é, a French fashion and luxury brand, told the outside world that Chlo é will gradually abolish see by Chlo é in the next three years. Riccardo Bellini said it was a natural and necessary step to strengthen its drive to upgrade. ?

Chlo é's employees and see by Chlo é's suppliers and business partners were informed of the news yesterday, which is the right choice for the brand to comply with the overall industry environment trend and the brand itself. Only by focusing enough can the brand achieve stable and sustainable organic growth.

What exactly is a secondary line? To put it simply, Armani or Prada can't be consumed by everyone. While maintaining a high cold tone, luxury brands have opened up sub line brands in order to expand more markets. In terms of price, they are 30% or even half cheaper than that of the main line. Their products are of quality and quantity. They even share a designer with the main line, To cover the young consumer market in this way.

However, for consumers, the vast majority are willing to pay for luxury goods or affordable fast fashion, which makes it more difficult for the "light luxury concept" route brand line in the middle zone to seize the market.

Coincidentally, the move is in line with Valentino's announcement that all activities related to the subsidiary brand red Valentino's business will be terminated from 2024, starting from 2022.

As the market has become more polarized in recent years, many large European designer brands have abandoned or are closing down their secondary brands and sidelines, as are Victoria Beckham, Duga banner and Missoni. Under pressure, luxury brands restructure sidelines. Prada repositioned the former sub line Miu Miu as Prada's on-line product.

Contrary to the trend of luxury accessory line, fast fashion brands have been looking for famous designer brands to cooperate with in recent years. Kanye West, for example, announced that his personal brand yeezy has signed a 10-year partnership with gap. After the news was confirmed, gap's share price soared 42% on Friday, the first time gap has risen since 1980

For the secondary line, having its own unique fashion logo is the key. "This must not be business driven, but focus on building a unique brand identity, integrating the corresponding design elements, so as to provide consumers with greater value and cost-effective products." In the long run, if there is a good balance between the secondary line and the main line, it will develop very well.

But for most brands, it may be more practical to merge low-cost products into the main line: the secondary line increases the cost for the brand and causes confusion for consumers. It is really more and more difficult to find a reason to persist.

Related information: see by Chlo é was founded in 2001 and launched by Phoebe Philo, then creative director. The brand is positioned as Chlo é's sister brand, which is younger and more affordable than the main brand. To date, about 65% of see by Chlo é business is wholesale, with 19 independent see by Chlo é stores in Japan. As see by Chlo é accounts for about 10% of Chlo é's sales revenue, analysts believe that the move will weaken overall brand sales growth in the short term.

Chloe has created a simple, beautiful and wearable concept of modern ready-made clothing when the lifestyle clothing brand challenges the aristocratic style of Paris high-end women's clothing tradition.