Brand Extensions fail, sometimes

This was a pretty interesting read: Luxury brand diversification does have limits

There are limits to how far a luxury company can diversify its operations without diluting its brand or confusing consumers, luxury executives and experts said this week.

How true. The IHT has been running full page Louis Vuitton timepieces ads of late, but I think I’ll never quite get used to them. Louis Vuitton for me means bags, travel, journeys; not watches — watches mean Patek Philippe, Vacheron Constantin, Audemars Piguet.

Photo Credits: Louis Vuitton

This is a pretty good example (must have been a horrid experience though):

Alain Crevet, head of French luxury pen and lighter maker ST Dupont (DPTP.PA), said the brand’s failed venture into ready-to-wear plunged the company into loss and shutting it down was the first thing he did when he joined it four years ago.

Imagine Goldman Sachs selling tank tops and Philip Morris selling laptops!

This entry was published on June 9, 2010 at 5:00 pm. It’s filed under Uncategorized and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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