Armani Secondary Line Queuing Up Consumption Dominates

Last month, Armani group announced 2014 fiscal year results show that the annual profit and income have achieved impressive growth, group sales of 2 billion 530 million euros, an increase of 16% over the same period last year.

Although the Asian region did not disclose the detailed data, the company described the growth level with "strong performance".

More importantly, in the good performance of last year, the secondary line brand contributed a lot. The Armani Casa of home wear brand increased by 20%, and the advanced custom series Armani Prive rose by 30%, leading the group performance.

Diversified brand strategy has successfully supported Armani's performance in the downturn of luxury goods industry.

Armani group hopes that young people will struggle all the way from wearing A/X to buying EA and eventually spending Giorgio Armani.

However, is it not enough to separate sub tier brands by price positioning? Armani has recently developed a new sub line brand New Normal.

The brand, as its name, claims to refine the classic style of the core brand, simple and practical, and against the fancy "blingbling" designs.

From the New Normal, which has just released the autumn and winter blockbuster, it is shown in black and white tones. The simple outline of windbreaker and jacket can be seen, as well as the excellent fabric that can be imagined for this design.

From the point of view of the promotion of the new brand, the company has spent a lot of money on inviting German supermodels, which have been endorsed by LV, Chanel and YSL.

Photographers also have great interest in shooting advertisements.

We can see that this brand is also expected to be quite high.

Last year, Armani group

The remaining 50% of the sub line brand A/X will develop this sub brand with the goal of Italian fast fashion, hoping to conquer the young consumers who advocate Armani style.

In 2013, the performance of Armani group was affected by the prosperity of the luxury goods industry and the Chinese market. It had a low growth rate of 4.5%, significantly lower than that of 16% in 2012.

At that time, the company announced that it would boost its performance by increasing investment in its brands and stores.

This obviously has a lot of success.

Data show that

Sales accounted for about 70% of Armani group's total revenue, while the main brand Giorgio Armani accounted for only 30%.

In recent years, EA sales, which are frequently exposed to quality problems, account for 26% of the total sales.

Because the subordinate line brand still relies on the luxury brand aura of the main brand, and is not limited to the excellent manufacturing process, the mass production mode can maintain the profit margin of the son brand up to 75%.

On the other hand, although the sub line brand itself is "fast fashion", its price is far higher than that of ZARA, H&M and other civilian fast fashion brands, ten times or even tens of times.