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"It is the very wealthy, but they [luxury goods companies] also have entry level products.
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The market term is "entry level product"– meaning a cost-conscious way to buy into a designer brand.
And LG Electronics has repositioned the company, making its Zenith brand an entry level product, while promoting the LG name as the brand for connoisseurs.
"The entry-level products do a fine job for us," Mr. Balsillie said.
"Manufacturing mass or entry-level products in Italy is no longer competitive," says Mr Guerrini.
Over the years, General Motors often looked to foreign manufacturers of dubious repute to provide its entry-level products.
But since Sept. 11, the company says, its sales of train sets have grown by 40percentt, primarily in entry-level products.
Luxury brands began a precarious balancing act, continuing to bask in their exclusivity while opening the gates to a whole new breed of customer by introducing "entry-level" products at "accessible" prices.
It blamed competition from cheap entry-level products in emerging markets, a category it does not participate in.
Both elements carry risk, though: Those top labels have commanded some head-spinning prices to acquire, and the tempting of youthful customers invites an outcry that entry-level products are a ticket to alcoholism and other unhappy consequences.
Both elements carry risk, though: Those top labels were acquired at head-spinning prices, and the tempting of youthful customers invites the outcry that entry-level products are a ticket to alcoholism and other unhappy consequences.
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