Megabrand set to make it big in 2006

Leading companies such as Proctor & Gamble, Shiseido, Avon and Unilever are expected to extend these key brands into new sectors and product categories as a means of increasing sales and broadening brand appeal to a wider consumer base, according to a report from Euromonitor International.​

Accordingly, the report finds that it will be the skin care sector, currently the most vibrant and fastest-growing, that is likely to be the focus for this development. During 2005 examples of megabrand development even included skin care brands extending their reach into hair care.

The report highlights that in April, Accantia launched a new range of perfume and colour free hair care products under its leading Simple brand. This was followed by Estée Lauder leveraging its Clinique brand into the hair care sector with the launch of True. Likewise, Beiersdorf is now set to take its La Prairie brand into hair care this month when it launches Cellular Intensive Hair Repair mask.

The report also highlights how the megabrand trend is being used to reach new consumers. Earlier this year Reckitt Benckiser was able to develop the 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'.

Depilatory products have been growing increasingly popular for men in recent years, but this has meant that many men have had to settle for products marketed towards women.

Newly launched products in this category for men are marketed on the strengths of bolder, more masculine packaging, as well as the fact that they have been developed to cater for the more specific needs of coarser hair.

"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 categorization,"​ says report author Alexandra Richmond.

The natural and organic categories are expected to offer considerable development opportunities. This means that in 2006 it is expected that Johnson & Johnson will expand its Johnson's Baby brand with the planned launch of Johnson's Soothing Naturals baby care collection this month.

The ethnic category should also hold strong potential for big brands wanting to broaden their appeal. In September, Unilever filed a trademark for Sunsilk Anti-Sponge shampoo, which leads Euromonitor to believe that an ethnic hair care launch is on the cards for the Sunsilk brand. Meanwhile, in September Procter & Gamble announced the launch of the Cover Girl Queen Collection, a colour cosmetics line targeted at non-Caucasian women.

On an unusal note, Japanese global giant Shiseido is 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, Euroromonito forecasts that other manufacturers are likely to adopt a similar approach as brand consolidation gets underway, which is likely to lead to big shake-ups in the brand portfolios of the future.