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Wolfgang * Laci Le in the "luxury to bring prosperity" in this definition of luxury: Luxury is a whole or in part, by their own community that are luxurious lifestyle, a new luxury and the old luxury of the points. Old-style luxury that is non-creative luxury, performance for the purpose of consumption and consumption of scarce raw materials; new luxury is to be treated with wisdom and knowledge and use of raw materials and materials. Old-style luxury is consumption, destruction, and the new luxury is the possibility of providing protection and improvement.Now, luxury is a kind of fashion, luxury has become a symbol of individual freedom; extravagance is to meet the physical and mental enjoyment of the highest realm of consumer culture, is a manifestation of the identity of the different symbols. Not only that, "modern luxury will give more impetus to the development of the global community, more strongly than the mass products Louis Vuitton UK Outlet are changing the world community," because the luxury to create wealth, luxury concepts, and to some extent, luxury has become a social progress and a powerful driving force of economic development.According to the study reported that 90% of the world's luxury brands, because of financial difficulties and increase the profitability of various reasons, have carried out a brand extension or brand of product line extensions, of which 90% of the extension failed.Prada Fashion in 1993 time to break their "women know best" brand promise, involving men's apparel and footwear market, the venture allowed the brand image has plummeted; Ferrari thrown off their "red girl," the mystery has become a common high-end sports car brand, brand "no specific" leads away from the customer, "World Business Review" will be the inevitable result is called "impulses of punishment.
" The reason why the luxury brand extension is more risky, there are various reasons:From consumer psychology to analyze, when the information through the marketing activities to reach luxury consumers and allow consumer behavior before the cause of self-doubt, which led to the start of the new spending, but the irrational expansion of product lines will be under the direct result of a consumer suspicion, thereby once again change consumer behavior. In the course of luxury goods, consumers are concerned about this thing is good, more concerned about this thing would suit, is consistent with our way of life.Trade-off effect from the positioning point of view, companies chooses a Hermes Handbags location, the inevitable expense of another position. In order to meet the needs of more people, the pursuit of higher sales and profits in the product line is not the ultimate end of the luxury brand to maintain its unique worth, resulting in blurred out of focus strategic positioning, product line extension of the final dilution of its own brand image of the original product or corrosion of the target company's competitive advantage.Select luxury line itself means companies have to give up 80% of the general public 20% of target customers and top of the pyramid customers, thus limiting the company's products or services provided, if taken into account in the fence between the two approaches, only hurt their own strategy, and reduce the value of existing activities, the enterprise will eventually lead to fuzzy positioning the decline of business.
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