Fight the "sameness" in the sea of brands
This AdAge article explores the changing dynamics of brand strategy, particularly in the context of Gen Z. Knowing which opportunities to decline is as important for a brand's long-term success as expanding their reach and diversification.
Milan Kendall Shah from Wolff Olins has the following key points:
- Strategic Focus: Brands like EasyJet, Fiat, and Louis Vuitton have thrived by maintaining a narrow focus. EasyJet concentrates on low-cost travel, Fiat has stopped selling gray cars to emphasize its colorful brand identity, and Louis Vuitton never offers discounts.
- Temptation to Diversify: The article discusses how brands are often tempted to diversify to either grow their customer base or sell more to existing customers. However, this can dilute the brand's core message and value.
- Gen Z and Brand Loyalty: Gen Z is less brand-loyal compared to previous generations. Only 37% of Gen Z consumers stick with a brand they were considering at the start of their shopping journey, compared to 56% of boomers.
- Simplifying to Win: In a crowded market, brands that choose a specific lane and stick to it can gain a competitive edge. For instance, EasyJet's focus on affordability led to a 79% increase in revenues in the six months ending March 31, 2023.
- Long-term Value: Brands that resist the temptation to diversify indiscriminately, offer discounts, or expand into unfamiliar markets are more likely to retain their value and reputation in the long run.
Interestingly, the article's insights align closely with our approach at Hypeless AI, where we have created branding workflows that fight the "sameness" plaguing many industries. By helping brands identify their unique selling propositions and focusing on what makes them stand out, we enable them to carve out a distinct identity in a crowded marketplace. This is particularly relevant in the context of Gen Z, a demographic that values authenticity and purpose-driven brands.