Famous brands operating in the Haute Couture and ready-to-wear sector started to operate in different sectors or to expand their product range by using their brand awareness. This is called the 'Brand Stretching Strategy' strategy. It can be done as a category expansion, as in expanding the product range by removing different varieties of a popular product of the brand, or entering a different sector or sub-branding by using the brand's awareness.
According to a study published in the Harvard Business Review, the cost of successfully launching a new brand in the United States is $30 million, while the cost of an existing brand to launch new products with a yawning strategy is $5 million. For this reason, brand stretching strategy is a strategy that world-famous fashion brands implement today to grow the brand and globalize. Ralph Lauren's flexing his brand and founding the Polo brand; Louis Vuitton's progress from suitcase making to bags and from there to ready-made clothing is one of the brand stretching strategies seen in history. Today, brands such as Gucci, Giorgio Armani, Christian Dior, Adidas, and Crocs are among the brands that implement the brand stretching strategy. For example, Gucci implemented a brand stretching strategy under the creative directorship of Alessandro Michele and released Gucci patterned home products, which were very popular at that time, under the name Gucci Decor. Opening a restaurant called Gucci Osteria at the same time, the brand managed to appeal to the five senses of Gucci lovers. Looking at all these examples, it can be said that the 'Brand Stretching Strategy' is one of the strategies that bring high success when successfully applied in the fashion industry.
Reference: https://vogue.com.tr/moda/moda-markalarinin-esnetme-stratejisi
