Riding Hip Jeans Into New Luxury Markets
A new generation of denim firms are launching upscale lifestyle brands
By Reena Jana
BusinessWeek Online
Jan 22, 2007
“You might think that for a young brand, netting $100 million in sales of $100-plus jeans is a sure sign of success. And indeed, labels such as True Religion, Rock & Republic, Citizens of Humanity, and 7 for All Mankind have graced the pages of fashion bibles like Vogue and Elle, and are sold in high-end stores from Saks to Barneys New York.”
What many successful high-end denim designers are doing today is expanding their premium denim lines to lifestyle brands. Most denim companies are producing denim as a start to then branch out to other markets. Consumers today are welling to buy expensive jeans because they see it as an investment. Jeans nowadays are worn everywhere from the office to school and in the weekends to the clubs. But some brands aren’t doing as well in sales as others are. As for traditional jean manufacturer like the Gap is doing so bad in sales that they are even talking about a buyout. Some companies have announced licensing agreements for scarves, footwear, and outerwear. For example in 2006, Rock & Republic launched an accessories line, shoes, bags, and eyewear. They also plan to expand into cosmetics and even into a Rock & Republic boutique hotel in 2007. Paper + Denim + Cloth is a premium denim brand which plans to do the opposite of working their way up from denim to a clothing line and so on. They plan to develop lower priced jeans of $80-$90. They plan to keep their name brand because it will help consumer recognize the brand faster. The denim market is a fair easy market to get into because the silhouette and construction of jean are very simple, the pant legs, pockets, belt-loops, and fly never change. The only part of jeans that may change is the lowered waistband or skinnier legs. The biggest challenge for these companies are maintaining the differences between the brands and marketing them self’s to the right targeted consumer.
...Wendy Carrasco...
By Reena Jana
BusinessWeek Online
Jan 22, 2007
“You might think that for a young brand, netting $100 million in sales of $100-plus jeans is a sure sign of success. And indeed, labels such as True Religion, Rock & Republic, Citizens of Humanity, and 7 for All Mankind have graced the pages of fashion bibles like Vogue and Elle, and are sold in high-end stores from Saks to Barneys New York.”
What many successful high-end denim designers are doing today is expanding their premium denim lines to lifestyle brands. Most denim companies are producing denim as a start to then branch out to other markets. Consumers today are welling to buy expensive jeans because they see it as an investment. Jeans nowadays are worn everywhere from the office to school and in the weekends to the clubs. But some brands aren’t doing as well in sales as others are. As for traditional jean manufacturer like the Gap is doing so bad in sales that they are even talking about a buyout. Some companies have announced licensing agreements for scarves, footwear, and outerwear. For example in 2006, Rock & Republic launched an accessories line, shoes, bags, and eyewear. They also plan to expand into cosmetics and even into a Rock & Republic boutique hotel in 2007. Paper + Denim + Cloth is a premium denim brand which plans to do the opposite of working their way up from denim to a clothing line and so on. They plan to develop lower priced jeans of $80-$90. They plan to keep their name brand because it will help consumer recognize the brand faster. The denim market is a fair easy market to get into because the silhouette and construction of jean are very simple, the pant legs, pockets, belt-loops, and fly never change. The only part of jeans that may change is the lowered waistband or skinnier legs. The biggest challenge for these companies are maintaining the differences between the brands and marketing them self’s to the right targeted consumer.
...Wendy Carrasco...
posted by Licensing 3 @ 6:37 PM
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