Learnings on brand loyalty, innovation, and luxury branding from Daniel Todaro
Brandingmag
The independent publisher narrating the global discussion on branding and culture.
group managing director?
"It is certainly difficult for brands to build loyalty in the modern world because they are having to think about a very culturally different younger generation and manage a more traditionally minded older audience."
Daniel is a regular industry commentator in his capacity and experience as a business leader, tech champion, and in brand marketing. He formed Gekko in April 2002 and, over a decade on, it has grown to become one of the UK’s leading retail, field marketing, and experiential agencies providing results-driven solutions to technology and leisure brands.?
EDITOR’S PICK FROM DANIEL
“Despite the sanctions and controversies, Chinese companies continue to power ahead with a unique approach in contrast to other brands that continue to offer much of the same. So, what perhaps could other brands learn from this approach to brand development and growing market share? There are possibly five key reasons why their brands have been able to succeed in a challenging environment.
1.They don’t procrastinate
Huawei invested heavily in Europe. However, having been in pole position to expand and build the new 5G network, its fortunes have dramatically waned. Its 5G kit must be dismantled and Huawei’s smartphones sold overseas cannot be equipped with Google’s GMS (Google Mobile Service), which has seriously affected their overseas sales of smartphones.
Understanding quickly the changed environment, the brand has reacted by launching HMS (Huawei Mobile Service). At pace, Huawei has created its own operating system, to remove its dependency on Google. This is because the company realized it couldn’t rely on other companies. The brand has reacted quickly with cool-headed rationality, focusing on other areas they can control. This is a good lesson for all brands who are forced by politics to react to changed circumstances.
2. Relentless focus on customer experience
Simply put, Chinese brands have shown an uncanny knack for knowing how to tap into what people want and deliver a great customer experience. To start with, they take note of the build features people enjoy. Part of the reason they can succeed in this is, ironically, by not being first to market with the new features. Their real skill is waiting for other products to launch and then synthesizing learnings and reacting, tapping into the emerging trends.
For example, as soon as a new Samsung device appears, Asian brands often react by mimicking it and possibly improving it. There certainly have been controversies about the extent to which this behavior blurs into copying and also brand or patent infringement, and yet the tech industry has long been premised on synthesizing ideas and improving on them. These brands are perhaps just more shamelessly blatant (and effective at doing this).
3. Appealing price points
In a world of inflation-busting prices for new tech products, challenger brands have gone against the grain with entry points that are really appealing. For example, Oppo and Xiaomi have equivalent products that could sit alongside the Samsung Galaxy. They provide price-conscious consumers with reasonably priced alternatives that offer the same or a better experience at half the cost. In fact, you get so much more tech for your pound. Giving the people what they want, at a realistic price point, is certainly an attractive mantra that resonates with many.
领英推荐
4. Focus on partnerships
A smart play by many brands across the decades has been to partner with well-established and loved brands to expand their reach among new audiences. This has been a clever way to establish credentials and power development.
5. Go against the herd
Where others fear to tread, challenger brands often boldly go. Last year, while others retreated from physical retail, Huawei opened eight flagship stores across major cities such as London, Paris, and Milan, and complemented by 42 experience zones that offered an ‘unrivaled’ user experience. They understood the need to engage consumers in the considered purchase space to achieve meaningful sales and market share, and create advocates of the brand.”
FEATURED ARTICLES
“With both ‘luxury’ and ‘fast fashion’ known to be a considerable contributor to global greenhouse gasses, water and air pollution, combined with poor working conditions, we are seeing a conscious effort by many people to change their fashion habits. These changes include a ‘less is more’ strategy, buying second hand, opting for natural fibers, and researching brand practices, often cajoling them to share the manufacture process and provenance.
Developments in the Luxury sector are slow compared to ‘fast fashion’ and with a year-on-year decline in revenues and profitability, there are not only economic factors at play but also the way that Generation Alpha consumers will be more selective and conscious."
“Value and values are two unifying themes that can be focused on, although realized in different ways. As consumers, we are all more interested in the purpose of brands and this is a clear differentiator. Brands today, particularly consumer goods products, have to think not only about how they make a product but also how they produce it. According to a study by Cone/Porter Novelli, 77% of consumers say they have stronger emotional bonds to purpose-driven companies. [...]
Creating brand loyalty today is far more difficult in a digital, social media-dominated world of increasing fickleness. Heritage brands are in trouble with a younger generation who has no interest in timeless qualities built up over many years. But brands can succeed if they adopt a new playbook. This needs to focus on the values and value of their product and on leveraging partnerships to remain relevant.”
"Gen Z are most likely to seek out great advice in store (45%) versus an average of 38% and are more likely to find staff knowledgeable across categories. They are also the most likely out of all ages to appreciate product demos (39%) against a 29% average across all ages. In fact, 1 in 2 Gen Z’ers (52%) and 38% of Millennials will spend more for a good experience in-store across all categories – crucial for the development of experiential retail. So it’s clear that retailers and brands need to be innovating sufficiently to appeal and to tap into this growing market and appeal to the core differentiators of Gen Z.”
Credit: gekko-uk.com
“Gen Z have a shrewd approach to not only their own finances but also evaluating the true value of what they are buying. This critical consideration of a brand’s values means that brands must work harder if they are to succeed.”
?? Want to become a Brandingmag contributor? Apply now >
P.S. If you enjoyed our Brand Fitness newsletter, be sure to subscribe to the weekly update and share it with your network ???