The Trend of Brand Extension

For several years now, we’ve been witnessing brands entering new markets and industries to establish their presence there. Luxury brands have started to include their name in new product categories in hopes of increasing brand exposure and enhancing their image. Who can forget the launch of The Palazzo Versace hotel in 2000 and Elie Saab’s new perfume back in 2011? While both brands are well known names in the fashion industry, they have extended their operations beyond apparels. And today, we see many other brands following in their footsteps and entering the eyewear, restaurant, and hotel industries to name a few.

What is Brand Extension?

Brand extension in its simplest form refers to extending the brand name beyond its current industry. Take the above for example; both Versace and Elie Saab are renowned names in the fashion industry. But instead of keeping their operations limited to fashion they extended them to other industries, while still maintaining the luxury appeal. Brand extensions are successful because they allow companies to diversify their offerings. More importantly, customers already have an idea about the brand name and so would trust the new products/services.

New Trends in Brand Extension

Several brands have started riding the wave of extension. We’ve compiled a short list of brand names that have recently announced their plans to enter new industries.

Atari Themed Hotels

For those who grew up in the 80s and 90s, you certainly remember the days you used to play a game on your Atari console! The pioneer in the video game industry has decided to expand its operations while still maintaining its unique image. A few days ago, Atari announced its plans to open a series of themed hotels across the United States. Not only is the hotel concept set to be out of this world, but it’s also going to be a full and immersive experience. So, those who are fans of virtual gaming and augmented reality better get ready!

Atari themed hotels
Atari themed hotels
Louis Vuitton Restaurant and Café

How do you think the design will be? More importantly, where will a Louis Vuitton café and restaurant be located? There’s no surprise that luxury brand Louis Vuitton chose the “nation’s kitchen” as its location. Osaka, Japan, will not only be famous for its delicious food but also for it becoming a home for the new Sugalobo V and Le Café V. This is the very first time Louis Vuitton has decided to extend towards the culinary sector. So, don’t expect anything less than extraordinary from this brand. An outdoor terrace, a cocktail bar, and a one of a kind designs, Louis Vuitton sets the bar pretty high with this one.

Louis Vuitton restaurant and café
Louis Vuitton restaurant and café
Elie Saab’s Home and Furniture Collection

You’ve probably heard about Saab’s designs or his perfumes, but what about his new furniture collection? This well-known Lebanese fashion designer announced his plan to expand into the home and furniture line. For several years, Elie Saab’s brand has projected an image of classiness and luxury, which makes this announcement all the more exciting. Set to unveil his home collection at the Salone del Mobile in Milan 2020, we’re excited to witness the unique experience this brand will deliver.

We’re beginning to see a lot of brands diversifying their offerings and entering new industries. And as seen, it’s not just luxury brands who are expanding. With the continuous advancements and growth taking place around the world, who knows which brand will be next? And what market? That’s yet to be explored.

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