Way's early, significant investment in creating complex, perfume-quality fragrances for its hair products was a strategic risk. This unique fragrance DNA became the core "through line" that gave them permission to expand into new categories like body care and perfume, driving brand loyalty and growth.
Way disrupted the haircare market by rejecting the industry norm of scientific, ingredient-focused marketing. Instead, they adopted a relatable, humorous tone that addressed the emotional reasons for a purchase, speaking to customers like a friend rather than a lab coat, which created a powerful brand connection.
Spotify leveraged its brand love to successfully expand from music streaming into podcasts and audiobooks. This emotional equity provides the necessary consumer trust for diversification, turning brand into a strategic asset for growth beyond the core product.
Lauder realized women rarely bought perfume, seeing it as a scandalous gift received from men. She sidestepped this cultural barrier by creating "Youth Dew," a bath oil that doubled as a perfume. This genius reframing gave women permission to buy a luxury for themselves, creating an entirely new market.
Companies like Hintwater can grow rapidly on the strength of a single beloved product. This creates a "product business," not a "brand business," making it difficult to carry brand equity into new categories without a distinct, overarching brand identity.
Instead of justifying brand building as a defense against AI-driven commoditization, frame it as an offensive move that builds long-term value. A strong brand shortens sales cycles and increases customer lifetime value, directly impacting revenue and making it a proactive investment that resonates with CEOs and CFOs.
Way's future CEO joined the scrappy startup not for the haircare, but because founder Jen Atkin had a brand vision that transcended the category, drawing inspiration from Range Rover and New Balance. This shows that a powerful, category-agnostic brand identity is a primary tool for attracting key early-stage talent.
A smart growth strategy is to ignore fleeting micro-trends and instead focus on proven bestsellers. By creating variations and expanding on successful designs, brands can develop entirely new product categories based on existing customer love.
To succeed in the highly fragmented salon channel, hair care brands must go beyond transactional relationships. The winning strategy involves investing heavily in training stylists, co-creating service menus with them, and providing specific SKUs for professional use. This builds trust and turns stylists into powerful brand advocates.
Young consumers are moving away from having one signature perfume. Instead, they are 'fragrance wardrobing'—collecting multiple, often smaller-sized, scents for different moods and occasions. This behavioral shift creates opportunities for brands to sell variety packs and smaller SKUs, increasing purchase frequency and basket size.
T3 redefined the hair tool category by moving its products from the home appliance section to the beauty floor. By insisting on placement next to high-end skincare and cosmetics in retailers like Nordstrom, they changed consumer perception, justified a premium price, and created an entirely new market segment.