forget that you have expensive clothes on sale at the luxury stores

"New audience," of course, translates in practice to the hope for increased revenue. The collections are geared towards giving the designers access to the high-volume arena, with the hopes of a trickle-up effect for their luxury collections.
While the business models vary by individual venture, the basic structure contracts a designer to work up a collection for the retailer, who in turn produces, inventories and merchandises the entire line. In return for what boils down to the cost of time and labor to design garments, the brand receives sales royalties, with virtually no capital outlay, according to Stone.
"It's definitely a revenue-generating proposition for the designer, and very profit-rich," he said. "If the sales of [the retail collection] are at a high level, the designer can be earning millions of dollars a year."
To cite one example, Proenza Schouler's sales not only went from a prepartnership total of $2 million to an estimated $6 million currently; its management has stated that it hopes to hit $25 million in sales within five years, not an unrealistic proposition if its growth maintains the pace that it has now.
The Delicate Balance
Extra millions in revenue will mean very little if the core brand suffers from a downscaled perception on the part of consumers. The trick with doing these projects well--and emerging with brand image unscathed--is making sure that the designer is in, and then quickly out of, the lowerend retail chain. So says Dana Thomas, Newsweek's fashion and culture reporter and the author of Deluxe: How Luxury Lost Its Lustre. "The most important thing," Thomas said, "is to do a capsule collection with a clear beginning and end time so that people don't think you're just a Kohl's or Target designer, and forget that you have expensive clothes on sale at the luxury stores."  yanzic0522.
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