Brands Behind the Brands
A branded label owned by one parent corporate company can diversify many costs and risks through economies of marketing, advertisements, IT, distribution, raw materials, production, etc. A house of established brands reduces one company’s brand exposure to an unknown future, and the fickleness the global fashion industry. This is why, today the size of the parent company matters. Bigger stock owned companies can invest more in marketing, which is vital to an industry built on image and brand awareness.
Today globalization is placing fresh demands on established fashion brands and luxury goods that could cause old marketing strategies to fail. It is predicted that by 2014 about one-quarter of branded goods and their licensing partners’ revenue will come from Chinese consumers. But, in order to become branded in China the same traditional marketing rules apply, as to the price of marketing and the investment of advertising and promotion. The marketing of branded products require established bank accounts that can cushion possible failures. Corporate multi-branded groups provide the floatation of available cash for expansion, plus financial discipline and accountability. Going public gives a newly branded label the protection and guidance they need to survive.
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