Sub-branding has long been a strategic tool for businesses to diversify offerings, reach new customer segments, and reinforce brand identity. In a previous blog, we discussed how sub-brands serve as natural extensions of master brands. They maintain key visual elements while catering to specific audiences. For instance, Coca-Cola's variations like Diet Coke and Coca-Cola Zero Sugar keep the core branding while emphasizing different product attributes.
As we move into the second half of 2025, several emerging trends and innovations are shaping the future of sub-branding. Understanding these developments can help business leaders make smarter, more future-proof decisions about their brand strategies.
Today's consumers place greater importance on environmental and ethical practices. The 2024 PwC Voice of the Consumer Survey finds that most shoppers are willing to pay almost 10% more for sustainably produced or sourced goods.
Practical factors matter most:
40% of consumers care about waste-reducing production methods.
38% seek eco-friendly packaging.
Nature and water conservation efforts motivate 34%.
In contrast, messages about corporate social responsibility and community involvement hold less weight. Only 20% of consumers say these factors affect their choices, with just 17% feeling similarly about community involvement.
Public opinion remains divided on how vocal companies should be about social issues. While 36% believe brands should take a stand, 43% believe they should stay out of it altogether. The backlash Target faced after rolling back its DEI initiatives recently, following years of visible advocacy, highlights just how delicate this balance can be. Speaking out can build loyalty or trigger a backlash, and staying silent can do the same.
Sub-branding offers a smart, lower-risk way to engage in values-based marketing. A sub-brand allows companies to reflect specific social or environmental priorities without tying those messages too closely to the master brand. This can be especially valuable when engaging with topics like DEI or women’s health, where consumer views are often split.
As a result, we’re seeing more sub-brands launched with a clear focus on purpose or values-driven initiatives.
Coca-Cola’s PlantBottle: Packaging innovation using up to 30% plant-based materials
H&M’s Conscious Collection: Clothing line made with organic cotton and recycled polyester
IKEA’s “IKEA Green" Initiative: Sustainable home products like solar panels and recycled furniture.
P&G’s EC30: A sub-brand offering waterless personal care and home products to reduce environmental impact.
These sub-brands serve dual purposes. They meet rising consumer demand for eco-conscious choices and help their parent brands demonstrate core values in action without alienating broader customer segments.
To explore how you can integrate sustainability into your product strategy, check out our blog on branded swag that reinforces environmental values. For companies interested in responsible print and packaging options, we recommend this guide.
Influencer marketing remains a powerful marketing strategy. However, it's evolving. Instead of short-term promotions, brands collaborate with influencers to co-create AND co-promote sub-brands that tap into loyal niche audiences.
Collaborating with influencers who reflect brand values to produce new product lines can generate new customer segments and enhance existing customers’ brand loyalty.
FENTY PUMA by Rihanna: In 2015, Rihanna became the creative director for PUMA's women's line, leading to the launch of FENTY PUMA. This sub-brand combined PUMA's athletic wear with Rihanna's fashion-forward designs. One product, the Creeper sneaker, sold out quickly after its release. They continue to launch hot new collections every season.
Selfless by Hyram: Skincare influencer Hyram Yarbro collaborated with The Inkey List to create Selfless by Hyram, a skincare line emphasizing sustainability and social impact. The sub-brand launched in Sephora stores worldwide, targeting Gen Z shoppers who want ethical skincare options.
These partnerships illustrate how influencers can produce authentic, targeted brand extensions under a company’s existing corporate umbrella.
Some high-performing influencers can introduce a new product line as a sub-brand. This is especially true if their identity is strongly connected to a niche or lifestyle. These ventures may not be part of a traditional corporate brand. Instead, they work as sub-brands within the influencer's larger business ecosystem.
SKIMS began as a shapewear and loungewear brand co-founded by Kim Kardashian and entrepreneur Emma Grede. SKIMS operates independently, yet it embodies Kardashian's personal brand. It champions body confidence, minimalism, and inclusivity. SKIMS is now a billion-dollar brand. Kardashian's influence, innovative retail partnerships, and bold campaigns benefit it.
Even when a brand like SKIMS is independently operated, it opens doors for other businesses to collaborate. Companies looking to align with strong influencer sub-brands can explore:
Retail and distribution partnerships
Sourcing and manufacturing partnerships
Event sponsorships and pop-up collaborations
Joint marketing campaigns and digital content creation
These partnerships allow a brand to align with influencers' loyal followings and benefit from the trust and authenticity they've built without developing a new audience from scratch.
Huda Beauty is a global beauty brand founded by influencer Huda Kattan. Initially launched with the support of Sephora, the brand expanded rapidly, offering a range of products from false eyelashes to full makeup lines.
Phase 3 contributed to Huda Beauty's Easy Bake product launch event in NYC, providing signage and collateral that enhanced the brand's vibrant identity. Such collaborations demonstrate the power of integrating influencer partnerships into sub-branding strategies.
Sub-branding is one piece of a larger brand architecture. This system organizes a company's master brand, sub-brands, product lines, and services. A clear brand architecture keeps every business element consistent. It supports better decisions and makes it easier for customers to see how each product or service fits into the overall picture.
Disruptive times call for flexibility. As markets change and consumer expectations evolve, business leaders are rethinking rigid brand hierarchies in favor of modular, adaptable brand structures. This approach helps sub-brands grow, reposition, or scale without disrupting the master brand.
Modern brand architecture models are built for change. Here are the core attributes that make a flexible architecture successful.
Adaptability: Allows for the smooth introduction of new products, services, or sub-brands without disrupting the overall structure or confusing the customer.
Scalability: Makes expanding a brand portfolio easier while preserving consistency in tone, messaging, and visual identity.
Modularity: Enables quick modifications to respond to evolving market demands or strategic shifts.
Flexibility: Balances brand coherence with the need to evolve so that all new offerings align with the broader brand story while standing on their own.
Clarity: Clearly defines the relationship between the master brand and its sub-brands or product lines, making it easier for consumers to navigate and trust the brand.
Strategic Framework: Provides a consistent, intentional roadmap for future operational and business decisions. This could include entering new markets, targeting new audiences, or launching new offerings.
Together, these features help companies stay agile in a competitive market. They can communicate more clearly with their audiences and scale without brand dilution.
A well-designed, adaptable brand architecture is a powerful tool for long-term success. Here’s how your business can benefit from adopting a flexible brand structure.
Future-Proofing: A modular system prepares your brand to adapt without requiring a complete overhaul every time the market shifts.
Reduced Risk: Enabling gradual expansion and clearer brand differentiation lowers the risk that new products, markets, or verticals will confuse customers or undercut your core offerings.
Enhanced Communication: Simplifies how customers understand your brand family, reinforcing the relationships between master brands, sub-brands, and product lines.
Improved Efficiency: Streamlined brand governance reduces duplication of resources, speeds up go-to-market efforts, and makes brand management easier across teams.
Increased Relevance: As consumer preferences evolve, a flexible brand structure helps you adjust messaging and offerings to maintain cultural and market relevance.
Several legacy brands have begun restructuring their sub-brand strategies to allow for more agility and responsiveness. Here are two examples.
Instead of using one master brand voice for all products, Nike has created semi-autonomous sub-brands. These include Nike Running, Nike Training, Nike Yoga, and Nike Women. When athleisure became popular, Nike quickly boosted Nike Women and Nike Yoga. They did this through innovative marketing, influencer partnerships, and new product innovations. They didn't need to start a new brand from scratch.
Coca-Cola has historically managed Diet Coke, Coca-Cola Zero Sugar, and Coca-Cola Classic as sub-brands. These products followed strict guidelines from the master brand. Yet, in recent years, the company has adopted a brand system called Coca-Cola Creations that allows more flexibility. Now, each product variation shares core visual and messaging elements but gives Coca-Cola the flexibility to roll out limited-edition flavors, like Coca-Cola Starlight or Coca-Cola Y3000 (an AI-developed flavor), under the same brand umbrella. These experimental launches serve as new product market tests without requiring the investment of a complete brand rollout.
A modular brand architecture helps companies stay flexible. It lets them quickly adapt to changes in consumer demand, product trends, and cultural moments. This approach maintains clarity and cohesion.
Today, sub-branding isn’t just a way to differentiate products. It's a strategic tool that helps businesses stay relevant, responsive, and resilient. Whether driven by purpose, powered by creators, or supported by flexible brand systems, sub-brands are becoming essential tools for growth.
Now is the time to assess your current sub-brand strategy. Are your brand extensions aligned with your values? Are they built for adaptability and growth?
If you're ready to strengthen your brand architecture or explore new opportunities through sub-branding, connect with the team at Phase 3. We help organizations create scalable, future-ready brand strategies that make an impact.
Let’s build a brand system that grows with your business. Contact us to get started.