Brand extensions need not be entirely new lines of product. Think about innovating within an existing category. For example, the Silk and Textiles business line of Hermès, with a continuous grow of an impressive rate of 9% annually, follows a twofold strategy: a. exceptional materials and masterful design; b. new formats.
It is the new formats (smaller or oversize carrés) that led the segment’s growth in the last two years, including a new online presence (http://usa.hermes.com/la-maison-des-carres.html) and strong brick-and-mortar performance via the Silk Bar.
Thomaï Serdari for PIQluxury