Financial Times FT.com

Stretching the brand: The risk of extension

By Carlos Grande, Marketing Correspondent

Published: June 4 2007 02:30 | Last updated: June 4 2007 02:30

In luxury, finding a good fit can be as important for brand-owners as shoe buyers.

With gross margins in parts of the sector running as high as 80 per cent, the financial incentive for luxury brands to launch original product lines or enter new markets is strong. So are the accompanying risks.

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