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PuckSR t1_j0ujqqv wrote

Well, take Electrolux as an example of why this happens.
Electrolux is a well-respected brand in Europe, but they sell under all of these brand names in Europe.

https://en.wikipedia.org/wiki/Electrolux#Brands

They use it as a way to differentiate their lines(using old names). So instead of needing to sell "Electrolux crappy" and "Electrolux fancy", they just sell it under the alternative brand names. That way, dumb people won't get mad at the entire brand just because their cheap unit failed on them.

Prior to this practice, one company might dominate the "cheap" sector, while another company dominated the "high end" sector for a given product. By using these sub-brands, one company can make both and maintain their reputation.

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BadgerSituation t1_j0ulnic wrote

Ah, OK. Thanks.

I don't like it, but at least it makes sense.

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PuckSR t1_j0unme1 wrote

Yeah, now Kenmore enters the chat. It is basically a zombie brand. What does that mean? It means that it is a former defunct company's name that they can use to maybe push some products. I dont know about Kenmore in Europe, but I would guess it is being applied to cheaper appliances.

See, when Electrolux goes to launch a new line, they don't just want to make up a name no one has ever heard of. So, they pay a couple thousand dollars and buy a brand name from a dead company. Then they slap that on their new line and people are a little more comfortable buying it.

The most egregious example of this in the USA was the brand "GE". GE was an industrial juggernaut in the US. They made everything from nuclear reactors to trains. However, they didn't sell very much in the consumer space. So, several companies bought the license to use their name on products like TVs.

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