In almost every industry today, the upper end of the market (luxury and high added value) and the lower end of the market (low cost, budget, etc) are growing while all that falls in the middle is shrinking.
Armani has demonstrated this concept once again by releasing the new "Armani Dolci line" on to the market: Chocolate Easter Eggs with the Armani Logo, selling at 425 USD apiece (and they have sold plenty...).
Remember: high end/low end or you're history. Which end of the market is your company competing for?
Paolo Ruggeri