Every week, it seems a different fashion brand or retailer announces a new partnership or diffusion line. Target and London designer Peter Pilotto, Superga and Man Repeller’s Leandra Medine, Suno and live visual artist Shantell Martin, to name just a recent few. While the majority of these are short-term, seasonal and/or limited edition collaborations, brands are increasingly taking this to the next level by creating permanent lines within their lines. From Kate Spade’s Saturday to Club Monaco’s ‘The Collection’ to hints that Coach will soon launch a new, very high-end selection of bags and accessories, brands aren’t just looking to entice new shoppers but build long-term loyalty with them–using a different price-point as the hook. In this new video interview, L2’s Head of Research & Advisory Maureen Mullen walks us through some of the history of this retail strategy and discusses the risks and rewards associated with it.

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