In a state of market turmoil, the traditional giants of the consumer industry have been shocked by a steep drop in brand value. Over the last five years, the combined value of the most iconic brand names in the world has slumped by a remarkable 20%, an event that has wide-ranging implications for the big players as well as newer, disrupter brands that may now gain a foothold in the market. Invest in this article to consider the outcomes and potential opportunities presented by this sudden shift.
1. Disruption in the World of Brands: Shaking Up Financial Value
As the world and its markets face an unprecedented period of disruption, crafty brands are finding new ways to repackage and protect their financial value. In a time when customer preferences and behaviour are in a constant state of flux, companies must remain agile to remain competitive.
Armed with creativity and ambition, savvy firms are deconstructing traditional value model approaches and replicating it in the modern era. Here are just a few initiatives to consider when shaking up the financial value of business:
- Focusing on key metrics: Identify desirable results such as customer retention and shifting customer loyalty from competitors.
- Gaining insights through data: By analyzing customer data with insight-driven analytics, brands can uncover new opportunities and stay nimble.
- Overlap of operations: By using a combination of both business and IT operations, brands can easily cut costs while increasing their reach.
Clearly, disruption in the world of brands poses both challenges and opportunities. But while shaking up financial value can be a daunting task, it’s the only way to ensure sustainability in an ever-changing economy.
2. How Leading Brands Fared During the Pandemic
The widespread impact of COVID-19 on the global economy is undeniable, and many leading brands have had to pivot their strategies to keep up with changing consumer behavior and demand. Paired with vast changes in the supply-demand equation, many brands have had to look into strategies for managing the storm.
Some companies have opted to increase their marketing campaigns to increase the reach of their products, while others have chosen to focus on expanding their digital presence or inventory to stay competitive in Australia. Notable examples include:
- McDonalds: To maintain their customers’ loyalty and relevancy during the pandemic, McDonalds launched their own ‘McDelivery’ program, allowing customers to order food online.
- KFC: With the demand for delivery rising, KFC launched a contactless delivery service with contactless payments, to ensure their loyal customers had access to their meals no matter where they were.
- Apple:The tech giant made a company statement reflecting the need to take proactive steps to combat the rapid spread of COVID, choosing to close their stores and delivering their products via online sales channels.
- Netflix: The streaming service announced a host of stay-at-home initiatives, such as free screenings and content discounts, as well as launching a direct-to-consumer promotion campaign.
It appears that many leading brands have adopted strategies that will help them survive and even thrive in a post-pandemic world, though it remains to be seen how the strategies adopted by these brands will stand the test of time.
3. Opportunity for Disrupter Brands to Make Gains
We live in an age of disruption, and there has never been a better time for disrupter brands to gain market share.
But how do these brands set themselves apart from their established competitors? Here are some strategies that can work:
- Unique USP: Create a unique selling point that your customers can’t find elsewhere. Showcase the product’s key differentiators and stand out from the competition.
- Modern Platforms: Utilize modern platforms and strategies to amplify brand awareness. Create content for YouTube, Instagram, and other social media platforms.
- Advertise Smartly: Spend time researching and understanding which type of advertising works best for your brand. Utilize targeted advertising for maximum exposure.
At the end of the day, disrupter brands need to stay true to their mission and keep their customers top of mind. Focus on innovation, staying ahead of trends, and building a strong customer base.
4. Will Mergers and Acquisitions Accelerate Brand Disruption?
With mergers and acquisitions becoming more commonplace, it’s easy to foresee the disruption of brands for a variety of products and services. Large corporations like Amazon, Microsoft, and Google have grown immeasurably by the method, pushing aside smaller, formerly successful companies and rebranding almost their entire portfolios.
But could they be the future of brand disruption? Mergers and acquisitions have become increasingly popular, with tech giants acquiring the latest startups and innovators. Companies who do this can not only benefit from new technology but also new markets and customers. This can make it difficult not only for smaller companies to compete, but also for more established companies who have to work harder to differentiate their goods and services.
- Mergers and acquisitions can reduce competition
- Companies can benefit from new markets and customers
- Established companies must work hard to differentiate
It appears that, for the world’s top brands, the familiar saying of “what goes up must come down” is beginning to prove true. With a 20% drop in value, the landscape of the traditional brand market is shifting, giving new disrupter brands the opportunity to capitalize on a strategic move up within the industry. As brands existing before the upheaval attempt to regain their consumer market share and those coming up adjust to the ever-evolving changing environment, the words of caution should be to not rest on brand laurels just yet.
