While the recession, and the move from traditional print to
digital channels, has put some magazines out of business (most notably Newsweek) other publications have begun
rethinking their strategies and redefining themselves as brands. While many are trying to simply move their
content to online, mobile and social media outlets, others are taking a more
holistic approach. Thus we now have “GQ
bars” and “Vogue Café’s.” And in London,
the “Conde Nast College of Fashion and Design” starts classes this week.
(Anaya, 2013)
So what do you think?
Will line extensions save these brands, and will advertisers embrace
them as part of their multi-media campaigns?
Anaya,
S. (2013, April 8) Drinks at GQ? businessoffashion.com. Retrieved April 9, 2013, from
6 comments:
I think brand extensions can be highly profitable and sustainable. Once a given brand has been developed, trusted and has demonstrated some form of consistency, I'm inclined to think their loyalists will follow them into other lines of business. The first thing that comes to mind are a lot of the Hip Hop moguls who from their music, took their audiences to fashion (P. Diddy), high tech/sound (Dr. Dre), restaurants (Jay Z) and energy drinks (50 Cent) to name a few. Brand extensions make sense for these publishers so long as they are maintaing their customer base. Further, these extension opportunities present other opportunities for revenue. In the case of GQ I see in bar magazine sales, product placement, entire bar and VIP sponsors. Higher end brands have done relatively well during the downturn, that being said I think the higher end clientele will pay for unique experiences from their favorite brands.
When I read the title, I was sold. Yes, I would love to go for drinks at the GQ bar. I think the idea will work very well. GQ and Vogue are brands that resonate with an upscale clientele. It tells me that these events are going to be upscale, elegant, and fun; it also tells me that the clientele will be similar, thus giving it more appeal. I don't think it will take the place of the magazine, but it is a great way to branch out into different business models. I belong to a small networking group, called ASW; they have events like this that I really enjoy going to them; in fact, I'm going to one tonight! I think it always depends on the individual person of course, but overall I think its a great idea.
I agree that expanding the GQ and Vogue brands are a good idea. Cross marketing is needed in s time when we live in such a socially evolving world. It become necessary to use their niche and grow from that while using the core value of the companies.
Susan DiBello
I think that brand extensions will be highly profitable for Conde Nast. The only thing I question is their reasoning for not entering the U.S. market. The fact that the brand is well established here would lead me to assume that there is less chance for dilution because consumers are already aware of its upscale, classy image. If anything, the threat of dilution seems highest in markets where Vogue/GQ are not as popular because consumers who are not familiar with the magazine are going to start thinking of Conde Nast as a chain of bars/night clubs.
When I think GQ, I think handsome, well dressed men, who wouldn't want to be around that?! But on a serious note, I think its commendable that these publications are willing to take the risk and step out of their comfort zone with the faith that their customers/subscribers will follow. As long as they keep the exclusivity high, I think that there is a chance for it to work. I agree with Michael that it is best to start in areas where the association has already been established so at to keep the image of the brand fairly consistent on a global level. I believe that with success, advertisers will embrace the idea, but they may need some convincing.
Personally, I'm not a big fan of the idea. It might just be a big failure and result in wasted money. I subscribe to "National Geographic" magazine and if there was a 'cafe' that the magazine had started to extend it's image, I probably wouldn't feel the need to go. I get what Vogue and GQ is trying to do--trying to bolster the brand by having these extensions. But there will be intense competition with other venues that already serve high-class clientele. I wouldn't go to a GQ bar (even if I loved the magazine). I'd go to Campbell's Apartment or Angel's Share for a high-quality experience. I don't know how GQ and Vogue fare compared to Newsweek's failure, but continue on using your energies to market the magazine. Not starting a new business venture, especially if you're tanking.
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