Elastic brands add real value to new categories. To stretch into growth, innovative, elastic brands do five things differently. Focusing on agility by enhancing innovation, even in the face of change, is one of five tenets of success for elastic brands. 

Product innovation to brand stretch requires agility across your whole business. And it must be grounded in real-time market understanding and continually testing processes. Balancing agility and consistency require a holistic customer focus, investment in technology, and innovation –  all while preserving your brand's core identity avoiding the risk of diluting it. 

Brand stretching requires agility to adapt to market swings and societal changes  

Netflix started out as a mail-based video-rental business before evolving into a core subscription streaming service. It now stretches into areas like original content production, gaming, and physical experiences. This brand has read the market and flexed its agile muscles to evolve and thrive. Likewise, known for its innovative vacuum cleaners, Dyson entered the beauty and haircare market in 2016 by releasing a high-end hair dryer. Continued investment in R&D to has helped the brand address consumer pain points and focus its technology investment.  

Some of the most successful elastic brands have been in it for the long haul with a firmly future-focused, agile stretch strategy designed for for evolution and growth. Think the Virgin Group, which started out as a humble record label and now reaches for the stars, literally. Its stretch success is due to a laser focus on its service and experience DNA to provide real value in everything from travel to fitness and finance. 

Elastic brands are more resilient and command greater loyalty in tough times 

As we continue to navigate economic and market turbulence, a brand’s resilience is critical – and this must be underpinned by how it protects its reputation and maintains its loyal customers’ trust. In fact, customer loyalty is built on the brand's ability to deliver quality products or services and uphold its promises. Brands with strong customer loyalty can more deftly navigate downturns;  research shows that brands that continue to innovate grow seven times faster than competitors.  

Stretch brands can bring brand relevance to the ongoing economic uncertainty where quality is linked to value as it becomes more of a mental stretch to pay higher prices for a brand. By repositioning affordability so consumers can buy a name in a price point that they can overcome while not compromising the brand value is a smart stretch. Absolut caught onto the celebrity vodka pasta sauce trend, creating value and excitement for consumers while maintaining brand integrity by collaborating with Heinz. This once limited edition has been revived due to overwhelming demand by consumers all around the world.  

Being on the pulse of evolving consumer trends and needs is also always critical 

The growth of industries like health and wellness provides opportunities for retailers to expand and merge ecosystems for great brand resilience in our ever-changing world. For example, to command a greater share of the consumer wallet and capitalise on rising demand for personalised nutrition and well-being products, Australian retail conglomerate Wesfarmers has entered the healthcare market with purchases of beauty chains and a pharmacy wholesaler and retailer. It has also invested in a digital medical diagnostics business and a telehealth prescription start-up.  

Iterative early-stage testing can actively shape your brand stretch innovation strategies to ensure both viability and meaning with consumers – and it can even inspire new ideas. It is critical to build competitive advantage by concept testing at scale. Elastic brands do this by leveraging data and analytics to address their customers' needs, nuances, and expectations. 

Circana’s comprehensive strategies drive growth and loyalty for your brand by delivering real-time analytics that help you measure and accelerate demand and stretch your brand to success. Discover the other four tenets to successful brand stretching or download the full Circana Outlook Report.