Luxury: Licensing loses appeal over perception gaps

Apparel companies are abandoning the licensing model, as they seek to align their brand with a global image.

Brand dilution is forcing luxury fashion houses to rethink licensing arrangements

Enter a Japanese department store today and you are likely find Burberry Black Label and Burberry Blue Labellines not produced anywhere else in the world.

In 1970, Sanyo-Shokai licensed the UK-based Burberry brand. From design to production to retail, the company then developed its own Burberry label, sold only in Japan. The two lines are produced at a more accessible price point than Burberry’s more luxurious collections elsewhereand, although financially beneficial for...

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