Mass market clothing retailer C&A, which is owned by the German Group LIDL annouced the launching of its first premium line, with prices 30% to 40% cheaper than the competing premium and luxury brands. The line called Yessica Pure will first be lauched in select stores of C&A in Spain and similar lines will be rolled out in Europe. For instance the price of a product from the Yessica Pure line will be almost twice as higher as one from the regular C&A lines.
This is a strategic move by C&A which takes advantage of the current economic crisis considering the lowering buying power but also the shame and guilt which is more and more associated to luxury. This type of development is also likely to attract a younger clientele for the C&A stores.
Other mass market retailers such as H&M are already mastering the development of special ”premium” lines. H&M launched in the past three months only two such premium lines one designed by Jimmy Choo and one designed by Sonia Rykiel. Since 2004, H&M has gained particular fame with its highly successful designer collaborations. From its first partnership with Karl Lagerfeld to its most recent joint venture with Sonia Rykiel, the capsule collections have given the company a higher profile in the fashion world and have led to a new fashion business model as a flood of designer collaborations have been launched by H&M’s competitors. (The most recent include Stella McCartney with the Gap and Rodarte with the American retail chain Target.)
U.K. based TOP SHOP is another brand which has developed various premium lines, the most recent one being the one designed by top model Kate Moss.
Co-branding the products gives customers the feeling they are still buying a luxury product. At the same time, customers discover new products more frequently.
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