Fashion has become an important product category for German discount supermarket chains, and we have seen many collaborations between those companies and celebrities to bring glamour to the stores. But recently Lidl has started a new way of promoting fashion by launching a small collection of fashion items with its own logo. The initial reaction was overwhelming, and it is a valid question why now even discounters can be successful by selling fashion items with their own logo. “With this horizontal brand extension, Lidl is bringing itself back into people's minds. In the ideal case, the company will reach new target groups”, says Prof. Fassnacht. Therefore, Prof. Fassnacht also considers the collection as advertising, even though the margins in the textile business are much more lucrative than those for food.
Read the full article at Spiegel Online.