Brand and line extensions: an empirical study from the new age luxury industry

Brand and line extensions represent an essential vehicle for growth and are currently one of the most applied marketing strategies within the luxury sector. Though it has its advantages, there are several risks associated with pursuing such a strategy. Consequently, this paper attempts to understand the key success factors behind brand and line extension in the new era of luxury expansion. An integrative model of key success factors is proposed by combining current research with empirical findings obtained through an explorative and qualitative research design based on primary data from eight semi-structured interviews with managers from luxury brands. We identify five key success factors: 1) add value through originality; 2) stay at the level of the brand regarding price, quality, style and image; 3) create relevance to core business and be aligned with DNA; 4) stick to the vision of the founder; 5) assure consistency in brand identity and image.