What does subsidiary brand mean?
2 Answers
Subsidiary brand refers to other brands operated by the same company. Specific meaning: Companies with multiple product lines usually have subsidiary brands, which can be understood as sub-brands. The essence of subsidiary brands is that a well-known brand is divided into different brands according to different categories, and these brands are all derived brands within the main brand. Main purposes: Many companies establish subsidiary brands when they grow larger, mainly for the following purposes: attracting other types of consumers and gaining market share; addressing the positioning issues of the main brand to achieve stable business returns; and expanding into overseas markets.
As someone who frequently researches automotive brands, my understanding of subsidiary brands is that they are multiple sub-brands under the control of an automotive group. For example, the Volkswagen Group owns over a dozen brands, ranging from affordable options like Volkswagen and Škoda for the average consumer, to luxury favorites like Audi and Porsche for the wealthy, and even supercars like Lamborghini. Although these brands share the same corporate umbrella, each has its own distinct identity. Audi focuses on technological sophistication, Porsche emphasizes performance, and Volkswagen specializes in family cars. This strategy allows each brand to precisely target its customer base while saving significant R&D costs on core technologies like engine platforms. The different showrooms you see at dealerships are ultimately controlled by the same parent company overseeing the big picture.
