16 Jun From brands to ecosystems: the future of brand stretch
Conrad Persons, Mash CEO, introduces our next thought topic: the evolution of brand stretch.
Once upon a time, brand stretch was simple. It was about a brand in one category, moving just a tad bit over, and stretching into another.
For a while it worked, but then it got harder, and a bit more complex.
Today brand stretch is seeing brands stretching from one category to another (AirBnB not only offers accomodation, but now offers travel experiences) – but also brands playing in their ‘home’ category, only with radically different business models (e.g. BMW’s on-demand rental scheme). Stretch becomes a way not only to enhance the brand experience, but to profit in sectors that were once off-limits.
In a world where growth is hard to come by, we’re going to see brands stretch in many new, inventive ways – and to build ‘ecosystems’ around them: a network of businesses that make money in very different ways, but are united by a single brand. This is already the key to Amazon & many tech brands’ success, and at some point, FMCG will start to catch up.
We’ll be exploring the future of brand stretch in the Studio this summer, along with our clients and a diverse range of experts. It’s an exciting topic, and we look forward to sharing more of our thinking with you over the coming weeks. Watch this space.