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Someone said: "I do no consider that economic development can change human nature. The ascend of China's booming navel level, they began to concern about material pleasures, and others take their own comparisons. So to some extent, folk will assume that the consumer behavior in China will change. "

"Luxury" comes from the Latin "Luxus", proposed to average "mighty fecundity", that mighty fecundity through the "luxury alive", "luxury" and "luxury attitude" in the form shown .

Wolfgang * Laci Le in the "luxury to bring prosperity" in this elucidation of luxury: Luxury is a entire or in portion, at their own community that are plush lifestyle, a new luxury and the age luxury of the points. Old-style luxury that is non-creative luxury, rendition because the purpose of expense and consumption of scanty raw substances; new luxury is to be treated with sagacity and perception and use of raw matters and materials. Old-style luxury is consumption, havoc, and the new luxury is the feasibility of providing conservation and improvement.

Now, luxury is a variety of form, luxury has transform a symbol of individual emancipation; extravagance namely to meet the physical and mental enjoyment of the maximum kingdom of consumer civilization, is a exposition of the personality of the another symbols. Not merely namely, "modern luxury ambition give extra impetus to the development of the universal community, more strongly than the mass productions are changing the earth community," because the luxury to create wealth, luxury notions, and in a way, luxury has convert a social progress and a powerful driving coerce of economic development.

According to the study reported that 90% of the world's luxury brands, because of monetary difficulties and mushroom the profitability of assorted reasons, have carried out a mark extension alternatively brand of product line extensions, of which 90% of the extension failed.

Prada Fashion in 1993 period to break their "women know best" brand promise, involving men's apparel and footwear mall, the adventure allowed the brand picture has plummeted; Ferrari darted off their "red girl," the puzzle has become a common high-end amusements car brand, brand "no characteristic" leads away from the purchaser, "World Business Review" will be the inevitable result is called "urges of punishment." The reason why the luxury brand extension is more menacing, there are various reasons:

From consumer psychology to analyze, when the information through the sale activities to reach luxury consumers and permit consumer behavior before the reason of self-doubt, which led to the begin of the current costing, yet the irrational expansion of product lines will be beneath the direct outcome of a consumer suspicion, thereby once another alteration consumer behavior. In the lesson of luxury merchandise, consumers are concerned about this entity is agreeable, more concerned approximately this thing would suit, is persistent with our access of life.

Trade-off achieve from the positioning point of outlook, companies chooses a situation, the inevitable outlay of different situation. In mandate to meet the absences of more people, the pursuit of higher sales and profits in the product line is not the ultimate end of the luxury brand to nourish its peerless value, resulting in blurred out of focus strategic positioning, product line extension of the ultimate dilution of its own brand image of the original product or corrosion of the target company's competitive avail.

Select luxury line itself method companies have to give up 80% of the general public 20% of target customers and altitude of the pyramid customers, thus restricting the company's products or services invested, whether taken into list in the fence between the two reaches, only hurt their own strategy, and reduce the worth of existing activities, the undertaking will finally guide to fuzzy positioning the decline of affair.

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