The following chapter focuses on the specific sectors and talks about how it needs to be creating a sense of commonality and differences between the air products. The core Idea comes by considering the example of the Red Cross as one of the primary charitable entities in the world. What makes Red Cross stand out and ahead of its other counterpart organizations like the united nations which constantly are under negative light with all the lack of Charity as well as effort made by the organization. Unlike the following organizations, Red Cross has constantly remained prominent and has stayed at the perfect example of the needed specificity within its sector of being someone who has differentiated itself to continue doing the work that they have done in the past.
This creates a connection with the luxury fashion industry where even if the same target market is relevant for all the brands and companies that are part of the industry there should be a vital perspective that makes them stand out in the crowd. With better understanding to ensure the difference between premium and luxury or better understand the difference between dream and realism, the focus is to break down luxury itself (CHAPTER 4 – From Private Labels To Store Brands,2022). The following chapter focuses on breaking down luxury into four types with providing prominent examples to go ahead with the same. On one hand, there is a type of Hierarchy or superiority placed upon goods like Rolls-Royce. On the other hand, there are luxury goods that indicate a sense of creativity and sensuality to the products which can be seen in luxury products like Gucci and Versace. The Other type of luxury and luxury-based segmentation is to have timelessness or an international reputation which can be seen in products like Porsche as well as Rolex. The force and the most prominent segment within the luxury market is an exclusive luxury which can be seen in prominent brands like Hermès.
Followed by the same the chapter also mentions the Pharmaceutical sector and service sectors and how they hold a similar form of segmentation and differentiation within the industries as one of the key vital traits to survive. There are many options within an industry but to remain significant for specific characteristics is what can make a brand stay ahead of its competitors or hold a specific place within the market.
The following chapter focuses on the idea about retail and fast-moving consumer-centric brand. There was a time when brands with the cheapest products were able to accumulate a higher number of components. These types of companies in the current time are considered to become innovators who produce products that are cheap and help to remain up to date on the consumer wants and needs as well as social updated trends. The example of brands like gap and IKEA is taken into consideration who sell one specific thing in the branded goods and the company focuses on reducing the prices by creating bulk production from low-cost countries like China.
The Importance of Differentiation in the Luxury Fashion Industry
Similarly, the following chapter also discusses the different needs and trends of the market which can be seen through distributor brands like Walmart as well as Tesco(Hult internationl business school, 2022). The creation of brands under the distribution brand like the creation of the clothing line George by Walmart and its clothing range along with Tesco and its version of Coca Cola. With understanding how customers do want cheaper products but there is a sense of exclusivity or quality assurance that they want within their products. This is one of the reasons why cheaper brands tend to create a higher amount of revenue and customers in their beginning time but with time customers lose their interest due to the lack of appeal. This can be taken as one of the major reasons why distributor brands have chosen to relabel themselves as private labels to separate themselves from the stigma that has been created. The best example of the same can be seen with Walmart and its private-label called the good value label or Cosco which has its label called Kirkland and target with their Pixie cosmetics which creates a sense of betterment within the quality of the product due to the shared idea of them being private and different from the low-quality product range.
The brands also come up by introducing their separate brand under their umbrella brand like Cosmo and Kirkland which are connected as the only place where people can buy Kirkland. To maintain the sense of demand and the progressive appeal towards the product companies often separate themselves from their brand and market them as separate entities to create their demand and their rarity within the market.
CHAPTER 4 – From Private Labels To Store Brands. (2022). CHAPTER 4 – From Private Labels To Store Brands. Retrieved 18 February 2022, from.
Hult internationl business school. (2022). Summary of chapter 4 5. Retrieved 18 February 2022, from.