Breaking into the premium market via oblique brand extensions: a trust transfer mechanism grounded in dual ecosystem and technological capabilities

Purpose This study investigates how to achieve brand premiumization through oblique brand extensions. Design/methodology/approach Grounded in trust transfer theory, this study develops a theoretical model positing that brand premiumization is driven by consumer trust transfer from a parent brand's dual capabilities (ecosystem and core technological) to its oblique extension products. This proposed model is validated empirically with survey data gathered from Xiaomi's users. Findings Consumer trust in a parent brand's ecosystem capabilities originates from its cross-category extension experience, while trust in its core technological capabilities derives from its innovation reputation. Trust in both capabilities transfers to high end-high tech extension products. This enhanced trust subsequently elevates the parent brand's premium brand equity. Originality/value This study introduces oblique brand extension as a new concept, proposes a four-quadrant classification matrix and reveals the trust transfer mechanism enabling brand premiumization via oblique extensions. It provides a theoretical foundation for firms seeking to penetrate premium markets through this strategy.