Essential Brands are the Future

The economic impact of the 2020 pandemic is undeniable. 

L’Oreal recently announced that they would be closing down operations for their Clarisonic brand.

Representatives stated they were doing so in order to “focus its attention on its other core business offerings.” It is said that the Clarisonic brand did not perform to L’Oreal’s expectations. 

Just a couple of weeks ago, Coca Cola announced that they would be shutting down their Odwalla juice brand operations. Subsequently, during Coca Cola’s second quarter earnings call, CEO James Quincey announced that they are considering the elimination of other “zombie brands” - those that aren't growing — to help cut costs.

Brands are increasingly focusing their resources on their core brands and products. 

Essential brands are the future. 

This is not to say that the Clarisonic and Odwallas of the world are not viable businesses. 

They just simply do not fit into the company portfolio - they don’t strategically align with their objectives and their business strengths. 

And the same should go for your business. Whether it be a SKU, a product line or a category, if it doesn’t align with your core, essential business, then it might be time to cut it loose. 

Streamline your business by focusing on what’s essential.