A parent brand is a brand that supports one or more sub-companies often within a similar product category or market segment.
A parent brand is a company that holds a controlling interest in one or more sub-brands, enabling leaders within the parent brand to make operational decisions for each sub-company.
In many cases, parent brands will support other child brands within the same market segment. The parent brand FedEx, for example, has several sub-companies underneath it, including FedEx Express, FedEx Freight, and more. In other cases, the parent brand will support child brands in different categories altogether. GE, for example, is parent to GE Oil and Gas, GE HealthCare, and GE Aerospace, among others.
Companies can create parent brands either by acquiring other businesses that exist underneath the main brand or by creating product spin-offs that require their own operational setups. Parent companies control more than 50% of the child brand’s stock, giving them overarching control of their operations.