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Brands without boundaries – The internationalisation of the designer retailer’s brand

Brands without boundaries – The internationalisation of the designer retailer’s brand Addresses an area which has been neglected in the international retailing literature; the internationalisation of the fashion designer's brand. Initial exploratory research revealed that there were 114 international fashion design houses competing for a global market of around £24 billion. Further research by postal questionnaire to entrants into the UK market, in addition to semi-structured interviews with European and US designers, confirmed that this market was buoyant, fuelled by the development of diffusion lines for the mass market. Identifies four stages of market development: wholesale channels to department stores; the creation of ready-to-wear flagships; large diffusion flagships; the opening of stores in provincial cities. In order to acquire capital to enable this expansion, over 60 per cent of all fashion designers are now public limited companies. Even then franchising of stages 3 and 4, diffusion line development, is often franchised to third parties with the designer maintaining control over the product and its brand image. Between 20-30 per cent of gross margin is spent on advertising support to create global campaigns to enhance brand image in foreign markets. However, there is increasing tension between the desire to be exclusive yet becoming involved in product line extensions and widespread distribution which could ultimately dilute the brand's value. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Marketing Emerald Publishing

Brands without boundaries – The internationalisation of the designer retailer’s brand

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References (48)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0309-0566
DOI
10.1108/03090560010331414
Publisher site
See Article on Publisher Site

Abstract

Addresses an area which has been neglected in the international retailing literature; the internationalisation of the fashion designer's brand. Initial exploratory research revealed that there were 114 international fashion design houses competing for a global market of around £24 billion. Further research by postal questionnaire to entrants into the UK market, in addition to semi-structured interviews with European and US designers, confirmed that this market was buoyant, fuelled by the development of diffusion lines for the mass market. Identifies four stages of market development: wholesale channels to department stores; the creation of ready-to-wear flagships; large diffusion flagships; the opening of stores in provincial cities. In order to acquire capital to enable this expansion, over 60 per cent of all fashion designers are now public limited companies. Even then franchising of stages 3 and 4, diffusion line development, is often franchised to third parties with the designer maintaining control over the product and its brand image. Between 20-30 per cent of gross margin is spent on advertising support to create global campaigns to enhance brand image in foreign markets. However, there is increasing tension between the desire to be exclusive yet becoming involved in product line extensions and widespread distribution which could ultimately dilute the brand's value.

Journal

European Journal of MarketingEmerald Publishing

Published: Sep 1, 2000

Keywords: Brands; Fashion; Globalization; Brand image

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