Where is your industry headed? Its brand extensions may point the way.

For the industries I focus on, I've recently spent more time investigating brand extensions -even the unsuccessful ones. I think they're too insightful to ignore.

The typical brand extension project is insightful because it's a credible bet on the future. Business leaders are investing resources --and their reputations-- when they venture into new arenas. They're making data-driven decisions.

The obviously dumb extensions, like Cheetos Lip Balm, are the exception to the rule.

Another reason to study brand extensions is their potential for breakthrough results. Whenever a company strays from its core competency, it often "returns to first principles" and questions how things are done in the new category.

These projects can be revolutionary.

Amazon Web Services (AWS) emerged from a small project to manage Amazon's IT infrastructure, and grew to become the leader of the ~ $600B cloud computing industry.

The Apple EV project that was cancelled in February, was largely focused on solving autonomous driving, an audacious goal for a new entrant in the highly-regulated auto industry.

Tesla's entry into solar panels and energy storage systems will likely produce $8B in revenue for 2024, and may spark massive changes in the US energy industry.

These are old stories now. My obvious recommendation is that you should always be on the lookout for *new* brand extensions in your industry.

If you work in the automotive industry or residential real estate development, here's a new and interesting trend:

Several luxury automakers have started branding luxury residential properties around the world.  In the US, there are 3 properties, all located in Miami, Florida:

- Porsche Design Tower [completed 2017]
- Aston Martin Residences [completed May 2024]
- Bentley Residences [estimated Fall 2026]

To me, these branded properties signal that automakers believe in fully autonomous driving. They know that cars will become mobile offices, mobile living rooms and even mobile bedrooms.

As a result, they are focusing on designing and customizing their vehicles' interiors. These buildings will showcase brand aesthetics, innovative features and usability, with direct application to their vehicles.

And perhaps in the future, branded properties will play a central role in maintaining and marketing vehicles. A whole new workforce may emerge.

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Whether these initial concepts are ultimately successful will depend on many factors.

My point is, whatever industry you're working in, don't wait for the industry experts to opine on its future. Look and listen for the next big trend. It will no doubt reveal some directional insights. And it might lead to the next chapter of your career.

#brandextension, #automotive, #Porsche, #AstonMartin, #Bentley, hashtag#autonomousvehicles