The red Valentino, which is about to be cancelled, will talk about the second line of luxury brands.

The big lemon, which has been silent for a long time, has returned to the code word. Thank you for never leaving ~

Some time ago (yes, it should have been a long time ago), I saw a news that a sub-line brand I personally like is about to quit the fashion stage: Valentino, which is famous for its great fairy wind, plans to close its sub-line brand RED Valentino in 2024. By then, this luxury women's clothing brand that has won the hearts of many girls and young women in the past 20 years will become yesterday's history.

draw

Speaking of red Valentino, earlier I wrote an article entitled "First bloodline of big brands" and "Affordable" in my sideline (looking back, learning something new here), and I first recommended the "Little Fairy" named by "Big Fairy" Valentino. On the basis of comprehensive evaluation of quality, design and price, it can be said that red Valentino is really a strong player in the luxury women's clothing circle, and can please a young woman of 40+ and win over a beautiful young girl in her early twenties. After all, no matter how old you are, whether you are a fairy sister or a fairy, as long as you are a girl, you will have a fairy dream more or less.

draw

I believe some people will ask, since the customer base is so large and deeply loved by women, why did Valentino have to reluctantly give up what one favours and cut off this side business? Investigate its reason, but also from the original intention of luxury brands to develop sub-line brands.

Open second-line brands to expand luxury brands.

Combined with the theoretical knowledge learned in class (yes, now whenever I write an article combining theory with practice, the theoretical source comes from what my mother learned at Guomao University), we know that an important purpose of the secondary line of luxury brand development is to achieve brand expansion. Take Armani as an example, in addition to its dominant first-line brand, several second-line brands have been developed, and their prices have been reduced one after another. From the high-end luxury hall to the mass consumer commercial plaza, Armani elements seem to have completed the full coverage of middle and high consumption levels without dead ends, and realized the popularization process from luxury goods to mass fashion products. What's more, Armani has also broken through the traditional business of clothing and extended the brand empire to extended fields such as make-up, home furnishing, hotels and chocolates, with the core purpose of enhancing brand awareness and winning more consumers.

draw

(Big Lemon made his own chart)

Interestingly, these consumers are no longer just luxury consumers in the traditional sense-the leisure class with high net worth assets, but with the popularity of brands, they have expanded to people with different disposable incomes, thus forming the phenomenon that "everyone can get luxury goods". For example, the new girl at the front desk of the company and the sales director who is the mainstay of the company use the same Armani liquid foundation. But in fact, when the head luxury brand began to expand downward, its luxury attribute was gradually disappearing, and when it can be bought in the mass consumer commercial plaza, it has transformed into a fashionable business model or a high-end business model, which is why we can still call giorgio armani a luxury product, while Armani jeans, A|X and other sub-lines can only be called fashion products.

Canceling the second line is the desire of the brand to return to the luxury circle.

While gaining higher popularity and more consumers, don't forget that luxury goods are strange consumer goods. This kind of consumer goods is worthless. Consumers are willing to spend a lot of money, largely because they are willing to pay for their dreams. Dreams are also a strange thing, which is inversely proportional to buying behavior. Once you put your money into the luxury of your dreams, it is no longer a luxury for you at that moment. So the price of luxury goods is always high, and the price is rising. After all, not buying it is a dream.

draw

Back to the topic of developing sub-line brands downward. There is no doubt that the sub-line brands that take the "civilian" route have made high profits, and this short-term profit is undoubtedly very attractive for the annual financial report of luxury goods groups. However, high returns also mean high risks. The sub-line brands that no longer have the characteristics of luxury goods gradually lose their creativity, superiority and selectivity, and the value of the main line brand may be eroded invisibly. Civilization reduces the distance between customers, and "creating a sense of distance" is exactly what luxury goods should have. The expansion of the consumer circle has lost elite customers, which is undoubtedly not worth the loss for luxury brands. This also explains why Dolce &；; Gabbana insists on the second-line brand D&; G closed the sub-line brand when the sales volume was good.

Lemon theory

For Red Valentino, it makes up for the unattainable pricing of Valentino, the main brand, and makes middle-income girls realize their dream of wearing fairy dresses. Moreover, if you are not an insider who knows the brand doorway, you may think that the "fairy fluttering" in front of you is from Valentino, and feel that it is difficult for you to tell whether the so-called Armani coat is from Armani Collezione or Emporio Armani. Of course, from the perspective of mass consumers, one more "flat replacement" option is definitely good, but from the long-term development of luxury brands, this "short, flat and fast" sub-line model really needs to be cautious.

Fortunately, Red Valentino still has three years to live. Friends who like this brand can also pay close attention to several clothes of psychosomatic instruments in the past three years. Maybe after three years, the new brand will win your heart again, so wait and see.

If you like my works, you will like my people.