Molson Hart

Fam, it's time to make another list—and this time I'd be grateful for your help, if you're a lover of luxury brands like yours truly. To set the stage, observe that when a luxury brand introduces a "diffusion line"—i.e. a new, usually less-expensive, more mass-market...

...extension of the original brand—the idea is that the original, more expensive brand will lend its prestige to the new diffusion line. For example, for a long time Mercedes-Benz was best known for what we today call its S-Class of sedans, the transportation of choice for...

...kings and dictators the world over. But today you can buy a diffusion-line Mercedes, the CLA-Class sedan, for $33,000 and thereby borrow some of the prestige of the S-Class. Now, if you own an S-Class, how do you feel about all those wannabes driving around in the CLA-Class?

You grit your teeth, if we're being honest, because the diffusion line does dilute the power and prestige of the "true" luxury brand at the top. This is what happens most of the time with diffusion lines. BUT......it seems to me there are rare exceptions to this rule. In a...

...minority of cases, the diffusion lines are actually ANTI-dilutive, meaning they ADD to the prestige of the more expensive, exclusive products at the top of the line, and are therefore welcomed by the top-line owners. The classic example is perhaps Rolex, whose Submariner...

...model is considered an "introductory Rolex" by many. But because it's so famous and iconic, the Submariner actually adds to the prestige of the much more expensive and exclusive Rolex models. If you're a well-heeled, well-fed, well-padded CEO wearing a Rolex platinum...

Day-Date 40 ("price upon request") to a board meeting, in your hearts of hearts you're happy to know that right as you sit there, there's a 27-year-old professional scuba diver at the bottom of the ocean wearing a Submariner. Trust me on this one!

Another example might be Armani, whose founder is now 84 years old and whose core customer—the wealthy woman wearing a Giorgio Armani label dress to the Oscars—is not too far behind. But both the label and the customer, it seems to me, receive some rejuvenation, some fresh...