奢侈品牌跨界延伸策略

Abstract

An ongoing problem faced by luxury companies is the dilemma to create new items to invigorate the brand, yet stay true to its core identity. Brand extensions become a popular option, where new products are launched adjacent to existing and successful offerings. However, poorly planned extension products may create high risks of brand value dilution. Customers may initially be willing to try new products due to long and trusting relationships with the core brand, but may begin to re-associate the brand with varying degrees of quality and market positioning that comes along with extension products. This study aims to find an appropriate model of brand extension pathway that can minimize this risk. Using methods of qualitative analysis, literature reviews were conducted to analyze the nature of luxury businesses and the different approaches to brand extensions that they have employed. A model that follows the criteria of successful brand extension strategies includes first identifying the internal and external strengths of the brand. Cross-category extension pathways may follow two directions: functional and focus change. Finally the goals of the company are matched with the pathway that will most suitably bring success to the brand, without diluting the brand values. The case of Steiff Taiwan looking for extension options follows this model, and found the most suitable functional and focus categories of brand extension. The optimal pathway is qualitatively analyzed to find the best fit between retaining brand tradition and expanding brand reach. Further analysis of the execution of this brand extension strategy should be conducted to evaluate the eventual outcome of the model’s suggestions.