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.
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.