Missoni is launching a diffusion line.

The Italian knitwear brand will create a more affordable range of clothes, although plans are still in the early stage.

Margherita Missoni - granddaughter of the fashion house's founders - said: ''You need to evolve. If you sit for a moment, you're not relevant in fashion anymore.''

The news of a diffusion line follows Missoni's hit collaboration with US chain Target last year but it's unlikely that the new line will match the low price tags of Target.

Margherita added to The Wall Street Journal: ''I don't think I could put the zigzag on that.''

While she couldn't confirm a name or expected date for the accessible collection, she did say it would probably be released to coincide with the launch of a new e-commerce site.

It was recently revealed Missoni only started making a profit 10 years after it was formed.

The label was started by newlyweds Rosita and Ottavio Missoni in 1953 when the couple set up a small workshop making tracksuits and later moved on to knitwear but Ottavio revealed it was a decade before they saw any financial benefit.

He said: ''We started making a profit after 10 years of activity and that day I felt like the richest man in the world.''