The secret in creating successful line extensions

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 



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