For decades, the iron rule applied: successful brands stand for clear competence. And this competence must not be diluted by the expansion of our product range. Rolex stands for sporty luxury watches. Volvo stands for safe automobiles. Zara stands for high fashion at an affordable price. Again and again the rule has been repeated almost mantra-like in specialist literature.
With their ambitious growth targets, brands have repeatedly attempted to penetrate new markets through sophisticated diversification strategies. Many of these attempts ended in disaster. A few years ago Nivea had to stop her trip to the make-up business and sing without sound. The “sexiness” of decorative cosmetics has nothing to do with the brand competence “care”. Bic, the manufacturer of disposable ballpoint pens, lighters and razors, had to realize that the newly launched underwear line had no connection to brand competence. Many of the product ranges expanded in recent decades have failed because the iron rule of brand competence was not adhered to.
For some years now, however, there has been a segment that has consistently ignored this principle and has thus had great success: the luxury goods industry. The Italian jeweler Bulgari operates opulent 5-star hotels in the most beautiful places in the world. The couturier Elie Saab, famous for his elegant evening dresses, builds glamorous luxury apartments in Dubai. The French top wine producer Cheval Blanc develops ultimate luxury resorts for stars and starlets.
What happens there? one asks oneself as a brand professional. Does the decades-old rule of non-negotiable brand competence no longer apply? An in-depth examination of the topic brings me to the realization that a new era of brand management has begun in connection with the expansion of the range. Previous rules only apply to a limited extent. New rules are emerging that will have a major impact on many brands. Dress warmly, because: The anthological brand is coming.
According to Wikipedia, an anthology is a thematic compilation of literary, musical or graphic works. In terms of brand management, the anthological brand is therefore a curated compilation of different offers and competencies based on an identity-based lifestyle promise. Jewels and hotels. Haute couture and real estate. Top Bordeaux and resorts.
According to a recent market study by Bain & Company on the global luxury goods industry, many luxury brands will in future exceed their typical competitive boundaries and act as so-called excellence platforms in different markets. They will become anthological brands.
Does this convergence trend only apply to the luxury goods industry? I don’t think so. More and more lifestyle brands are pursuing this strategy: Apple and Facebook are conquering the financial sector with Apple Card and Libra. Ralph Lauren and Armani open cafes and restaurants. Prada enters the confectionery business with Pasticceria Marchesi.
The reason for this phenomenon, in addition to digital feasibility, is the increasing importance of the customer experience. Today, a contemporary brand promises a value-based attitude to life, which can be consistently experienced at all brand touchpoints. And this attitude to life is no longer limited to a monothematic offer in the sense of brand competence.
Lifestyle is in and is becoming a driver in many industries in which the topic has not had any significance up to now. Swiss private banks are hiring former marketing teams from luxury watch brands. Graduates of the Lausanne Hotel Management School are sought-after junior managers outside the classic hotel industry. More and more brands are focusing on identity-oriented lifestyle concepts.
So don’t be surprised if in the near future an airline brand enters the baggage market, an international consulting firm founds an elite university or a hotel group sets up a private day spa chain. Anthological brand concepts will be found wherever lifestyle plays a role. And this convergence trend will not only take place in the luxury goods market.
The danger for traditional brands is that traditional markets will be ‘shaken up’ by competitors from outside the industry who are hard to imagine today. And because brands with anthological potential are mostly controlled by large companies, they tend to have investment potential for powerful market entries. At the same time, traditional brands also have brand licensing and co-branding opportunities in cooperation with anthological brands.
In the Swiss brand landscape, anthological brand concepts are hardly discernible today. Not even in the luxury goods market. Is it the lack of courage or the lack of creativity? I don’t know. But I’m sure that lifestyle-oriented brands will sooner or later have to ask themselves in which markets with no competence growth opportunities are seen. Long live the new age of the anthological brand!