Versace is a well-established premium fashion brand, however, currently, due to the financial difficulties it is adopting a new strategy of diversifying their product line in order to reach a wider, less affluent target audience and some of their fashion lines are becoming more accessible to the public. Although launching brand extensions has proven to be a potentially successful and profitable growth strategy in the luxury sector, the brand extension should be consistent with the core brand, otherwise the connection and the appeal might become diluted.
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