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If a fashion conpany specializes in Formal wear, then decided to produce casual wear, does it...

If a fashion conpany specializes in Formal wear, then decided to produce casual wear, does it count as product diversification?
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Answer #1

Product Diversification involves adding a new product to the existing product line of a company. The fashion company specialises in Formal wear. It is expanding the existing product line which involves formal wear and is adding ‘casual wear’ to its range of product offerings. Thus, it is a part of product diversification. It is a type of concentric diversification where a business adds similar products(casual wear) to its existing offering(formal wear).   

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