Diffusion confusion: do secondary lines devalue luxury brands?

Marc by Marc Jacobs, the more affordable women’s contemporary fashion line from the luxury, trendsetting fashion designer, launched in 2001 to great fanfare.

Over the past decade, you’d have to be living under the biggest fashion rock to have missed its presence amongst the millennial tastemakers. And yet surprisingly, last spring the brand was shuttered. What happened?

Lower-priced secondary labels, called “diffusion lines” in the fashion industry, are often launched by a premium namesake product line to attract a broader range of customers with a more affordable price. The discontinuation of Marc by Marc Jacobs (MBMJ), and its absorption into the primary Marc Jacobs line, paints a cautionary tale of how diffusion lines can harm a brand’s equity.

Even Pantene has confused consumers with multiple products beneath the same umbrella

http://www.brandunion.com/insight/2016-05-31/4835/diffusion-confusion-do-secondary-lines-devalue-luxury-brands

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