Tuesday, July 16, 2019

From Old Navy to Madewell: How sub-brands grow up to eat their parents

Retail Dive
They're not designed to be predators. But sometimes a sub-brand ultimately does a flagship more harm than good.

The theory is often sound: create a new brand to better compete with rivals, which often includes emerging businesses that are disrupting your offer. But the result can mean that your customers drift to that new entity, especially if it was developed as a cheap alternative, and subsequently abandon the original. That can induce not just financial and sales defeats, but also a brand conundrum.. . . more