In a consumer-packaged industry populated with large legacy equities and product forms, next-generation brands are creating ripples—and perhaps better said, waves—in what has otherwise been relatively still water.
In the latest Industry Insights report, William Blair’s Jon Andersen, CFA, partner, and research analyst covering the consumer products sector, identifies next-generation brands as those that are making sustained market share inroads with large, fast-moving consumer goods categories and doing so in concert with five motivating factors:
- Serving vital consumer needs, fulfilling essential functional and emotional roles
- Building authentically aligned relationships by embodying and living up to values in demand by customers and consumers
- Deploying disruptive, hyperefficient marketing to create influence and drive demand
- Innovate with relevance and pace while using deep insights and swift concept-to-commercialization means
- Employ new tools and technologies to enrich consumer experiences and lower costs
When done well, the collective outcome is a vibrant ecosystem that enables the brand to become part of the fabric of consumers’ lives; the brand becomes a durable moat, outpacing category growth and enabling and driving scale. Our analysts believe the next-generation brands in this report have, or are building, moats that are sustainable, long-term, defensive, profitable, and hard to replicate. By targeting and aligning with vital consumer needs and values, the highlighted next-generation bands’ ecosystems generate preference and loyalty, enabling them to outgrow their respective categories, scale to profitability, and ultimately, create significant shareholder value.
For more information on the companies from Jon Andersen’s coverage list, please contact us or your William Blair representative.