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Glossary – Brand ecosystem

Brand ecosystem

Nikiforov Alexander
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What is a brand ecosystem?

A brand ecosystem is the integration of various products, services, and solutions under a single brand, creating a cohesive customer-oriented space. For example, the "Yandex" ecosystem includes a wide range of products, from food delivery to web analytics for businesses. Unlike traditional holdings or multi-brands, an ecosystem offers a seamless user experience: customers can use all services with one account, access a unified loyalty program, and contact a single call center. Research by McKinsey shows that 71% of consumers prefer ecosystem offerings, highlighting their relevance in today's market.

History of the ecosystem concept

The term "ecosystem" was borrowed from biology. In 1935, British scientist Arthur Tansley proposed using this word to describe communities of organisms interacting with each other and their environment. In a business context, the term was adapted by strategist James Moore in 1993, describing an ecosystem as a collection of companies and customers. In 2008, scholars Musa Pinar and Paul Trapp suggested considering the ecosystem within a single brand when a company encompasses various areas of its activity. Major global ecosystems include Google, Apple, Amazon, and others, while in Russia, "Sberbank," "Yandex," and "MTS" stand out. According to McKinsey forecasts, by 2025, 30% of the world GDP will be related to digital ecosystems.

Components of the ecosystem

Each brand independently determines the composition of products within its ecosystem, allowing it to address customer needs across various areas of life. Examples of areas include, but are not limited to:

  • Financial services (banking products, insurance)
  • Internet and communication (social networks, messengers, browsers)
  • Electronic devices and IT solutions (gadgets, cloud platforms)
  • Entertainment (movies, music, games)
  • Food and everyday goods (online stores, food delivery)
  • Transportation (taxis, car sharing)
  • Healthcare (online pharmacies, doctor appointments)
  • Real estate (buying, selling, renting)
  • Education and career (online courses, job searching)
  • Tourism (booking accommodations, purchasing tickets)

Types of ecosystems

Ecosystems can be organized according to various principles. Depending on their structure and interaction with users, they are divided into:

  • Superapps — universal platforms that combine various services in one app. An example is WeChat in China.
  • Separate platforms — the ecosystem consists of individual apps and services, as in the case of Google, which includes YouTube and Gmail.
  • Hybrid models — a combination of superapps and separate platforms, as seen in VK, where the main app includes mini-programs.
  • Vertical ecosystems — focused around one product, offering additional services to solve a single problem.
  • Horizontal ecosystems — aimed at satisfying multiple customer needs, as in the case of "MTS."
  • Mixed ecosystems — combine vertical and horizontal approaches, as in "Rostelecom," which develops its own services and attracts partners.

Benefits of ecosystems

Ecosystems benefit both businesses and customers. For companies, the advantages include:

  • Increased loyalty — ecosystems meet customer needs across different segments, creating a closed space around their products.
  • Increased revenue — an expanded package of goods and services contributes to revenue growth and higher average transaction values.
  • Personalization of offers — utilizing customer data allows for tailoring offers to their interests.
  • Integration and partnership — the ability to include other companies in the ecosystem to broaden offerings and increase traffic.

For customers, ecosystems offer:

  • Convenience — a single account for accessing all services simplifies interaction.
  • Favorable offers — discounts, cashback, and other benefits make using ecosystems more attractive.

Risks of ecosystems

Despite the advantages, the development of ecosystems is also associated with certain risks:

  • Market monopolization — large ecosystems may suppress competition, limiting opportunities for small businesses.
  • Stifling innovation — the complex structure of ecosystems can hinder the adoption of new technologies and slow down the development of startups.

Thus, ecosystems represent a powerful tool for business development; however, their impact on the market and innovation requires careful analysis and regulation.