When Interbrand released its annual top 100 global brands survey, it was the first year in the survey’s 10-year history that the combined value of the top brands fell - a staggering sign of the times. The biggest losers were those brands with greater distance between them and their consumers, including the banks, automotive and luxury goods.
It’s not surprising that banks have lost trust with the consumer. They are largely held responsible as a group for the crisis, and with the bailout now enabling many of the institutions to get back to ‘bonus as usual’, the brand outlook for the short term is likely to darken further for this category. Financial brands have to be hoping for both a swift global recovery, and for consumer forgiveness (and a short memory).
Automobiles are victimised by circumstances, but likely to bounce back much faster in consumers’ hearts than banks. Of note is Korea’s Hyundai Motors. It has actually shown how a brand can connect - and grow - during hard times by showing empathy for customers, while others hope for sympathy.
Luxury goods are just not in vogue when money is tight. Tiffany, Cartier and Armani are down. Inconspicuous is suddenly the new badge of success. Many luxury brands are introducing second lines, like Versace’s Versus, targeting aspiring young luxury seekers.
Interestingly, the biggest winners at this time of re-evaluation were Google and Apple (up 25 per cent and 12 per cent, respectively), two brands that have gained proximity to people. H&M, Zara, Coca-Cola, IBM, McDonald’s, Ikea and Amazon are winners, too.
We are thinking more about our brands now - what they stand for, and just how important they are to us. Do my brands really care about me, and are they as essential to me as I once thought?
Actions speak louder than words at this sensitive moment. Brands that embrace empathy and innovation are likely to connect more deeply with people. Yet, even after the Great Recession becomes a memory, aren’t empathy and innovation really the key to brands connecting with consumers, good times and bad?
Craig Briggs, MD, Brandimage Asia
[email protected]
This article was originally published in 19 November 2009 issue of Media.