Spin-off brands have been gaining popularity recently and have proven to be very successful at boosting brand awareness and improving revenues across a range of product categories.
Last week, women’s clothing retailer Ann Inc. announced the launch of its third label, Lou & Grey, as an addition to its current brand portfolio, which already includes Ann Taylor and Loft. The new brand will help advance the company’s aim to “develop new categories of growth,” as announced by chief executive Kay Krill. The move is the latest in a string of developments from the world of specialty retail that set the ground for the rise of the spin-off brand, Fashionista says in a post.
Retail fashion brand extensions are not a new phenomenon; they became especially popular in the 1980s when Urban Outfitters created its private label Free People and GAP bought Banana Republic. Nowadays, spin-off brands are enjoying more attention than ever before and are seeing a continual increase in brand interest, but also fierce competition from other fast-fashion brands and online rivals. These spin-off brands are typically created to win the hearts of younger consumers; the aim in recent years has been to attract core clients in new, innovative ways and to reach consumers from the teen market.
More and more specialty apparel brands are beginning to realize the need to nurture new brands in an effort to provide consumers with a reason to shop in brick-and-mortar stores, Brian Sozzi, chief executive of Belus Capital Advisors, commented. A new label can spark interest and create a positive buzz around your brand that will hopefully be reflected on social media, he said.
Do you think spin-off brands are the solution to specialty retail’s challenges?