Luxury brands should be cautious about collaborations with significantly lower-priced brands, as such partnerships may generate short-term buzz but risk long-term brand equity dilution, particularly when the luxury brand's core product line (like AP's Royal Oak, which accounts for 90% of sales) is central to their brand identity.
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Swatch x AP frenzy: Genius marketing or luxury branding risk?Added:
uh ask yourself, is this something as a brand you really want to be associated with?
I think actually this is a very, very dangerous move for AP because AP is really dependent on the Royal Oak. The Royal Oak is about 90% of their of their sales. And um to me the, you know, the pictures that you showed before of the stores with the riots and so on, ask yourself, is this something as a brand you really want to be associated with? Um so, this hype is going to be there for sure for a couple of days, maybe a couple of weeks, maybe a couple of months, but I have huge doubts that this is going to be a long-term brand equity play. Honestly, I don't know any case where a brand did um a collaboration with a brand that was significantly um below in terms of price point, in terms of quality perception, where the brand actually um was gaining long-term.
I don't know any any case of that. This is why I personally extremely skeptical about this.
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