The Ettore Bugatti monogram line translates physical elements of the car’s auto’s designs into fashion

 The Ettore Bugatti monogram line translates physical elements of the car’s auto’s designs into fashion ”

The brand hopes this move will increase its visibility – and no doubt they will achieve this, with plans to build a global network of 35 retail flagships, boutiques and shop-in-shops over the next 5 years. But moving away from one’s core expertise too far too soon can be dangerous.

Using the world’s top-of-the-range materials does not compensate for a brand’s lack of history in a particular area. Indeed, Bugatti is leveraging on the reputation of high-end brands in other sectors to produce watches and accessories. These include watchmaker Parmigiani Fleurier and homeware brand, Lalique.

While these are recognised names, this almost reaffirms the auto brands own limited expertise in those categories. From a luxury standpoint, this is not ideal – it may be better to be an expert in one area and innovate within that, than to expand into unfamiliar territory and be associated with mediocrity.

An alternative is to start first with close extensions. Aston Martin’s limited edition road bike, the One-77 Cycle, is a good example. Produced in the same quantity as the One-77 car and featuring the same clean design, this is an extension that customers can easily understand because it uses innovations naturally derived from racing car technology.

The result is an element of trust in the quality of the new product, and ultimately in the brand. At the other end of the scale, Ferrari’s licensing move into apparel has attracted the masses, yet has managed maintain the exclusivity of its brand. This is because it has associated the Ferrari store to its almost separate motorsports brand, rather than the automotive brand itself.

In summary, moving into lifestyle is a prevalent trend amongst prestige brands, and a very rewarding one if executed well. Brands need to plan their route carefully – though the safest way is to expand gradually into areas of similar expertise.