So what is a Megabrand?
The development of the “Megabrand” emerged in the cosmetics and toiletries market in 2005 and is a trend that is seeing leading manufacturers such Shiseido, Avon, Unilever and Procter & Gamble, focus innovation around just a handful of brands. These “Megabrands” are then being extended into new sectors and product categories, to scoop up sales and broaden brand appeal amongst a wider consumer base.
Skin care points the way
The skin care sector in 2005 provided a multitude of examples of Megabrand development, with a number of skin care brands extending their reach into hair care. In April, Accantia launched a new range of perfume and colour free hair care products under its leading Simple brand. In the same month, Est?e Lauder leveraged its Clinique brand into the hair care sector with the launch of True. Beiersdorf will also take its La Prairie brand into hair care this month when it launches Cellular Intensive Hair Repair mask.
The Megabrand trend is also being used to reach new consumers. Earlier this year Reckitt Benckiser was able to grow appeal of its Veet depilatory brand amongst male consumers with the launch of Veet for Men, encouraging men to experiment beyond their grooming comfort zones. The fashion for increasing brand relevance to a wider range of consumers is set to continue into the New Year as product lines become increasingly sophisticated in terms of product categorisation.
Categorical growth for Megabrands
The natural and organic categories are expected to offer considerable development opportunities. 2006 will see Johnson & Johnson expand its Johnson's Baby brand with the planned launch of Johnson's Soothing Naturals baby care collection in January.
Tapping into the ethnic category will help extend other big brands across a range of sectors. In September, Unilever filed a trademark for Sunsilk Anti-Sponge shampoo, suggesting that an ethnic hair care launch is on the cards for the Sunsilk brand. In September, Procter & Gamble announced the launch of the Cover Girl Queen Collection, a colour cosmetics line targeted to non-Caucasian women.
Shiseido is taking the unusual move of asking devotees to stop buying its Proudia and Pieds Nus colour cosmetics products. Instead, they will be encouraged to switch to Maquillage, the mega-brand expected to replace the two lines. With the Megabrand trend gaining momentum, Euromonitor International forecasts that other manufacturers are likely to adopt a similar approach as brand consolidation gets underway.
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