There was a time when if you loved a brand, you would opt for its trademark products. But what if your favoured handbag brand suddenly added make-up to its repertoire? Would your loyalty remain unfailing, as long as you can spot the logo you love?
It’s a question that’s worth pondering as an increasing number of luxury brands are diversifying, moving out of their core areas of expertise and hoping that loyal consumers will follow.
Luxury companies that traditionally sold soft luxury goods – fashion-driven clothes, bags and accessories – have moved on to hard luxury (that is, watches and jewellery) and even hotels and homes. This attempt to diversify into new business areas without watering down brand value has been a precarious game for many brands.
(Source: The Hindu Business Line )