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THE CONSUMER’S PSYCHE
The Cumulative Effect of all Channels and Retailers on own Brand Perception A consumer’s psyche is a weird thing. What seeps in through the environment, reputation and media takes a long time to reverse. People’s perceptions don’t often change in an instant (unless it is sports, where athletes can go from goat-to-hero in the span of a couple games). Nope, changing consumers’ brand perceptions takes a while, and earning credibility, building equity, establishing trust and gaining apostles takes a lot of nurturing. With brands it is important to point out that the fall is usually quicker than the rise. Look to the Tylenol scare of 1982 or more recently, the E-Coli outbreaks at Chipotle restaurants, and you will see brands that descended sharply, with lots of perceptual damage that lingered. The fall is sudden, trust is ruptured, and it takes time and tangible changed brand behaviors to earn it all back. The rise of a brand, from “lowly” to “revered” is not quick at all, it is much more deliberate, and for many, impossible. Hyundai was introduced from Korea to the U.S. in 1986 (the subcompact, low budget Excel model), and after deliberate product improvement, quality manufacturing investment, extended warranties and persistent marketing they have created a Korean luxury car segment where their Genesis G90 now sells for $75,000+. From sub-compact economy cars to competing with Lexus and Audi, you bet, though it took over 30 years.
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GLOBAL RETAIL BRANDS / JANUARY 2022
The Pathway To Trust For Private Brands Like Hyundai, it has been the rise of private brands that has been remarkable, steady and earned every step of the way. The steady growth has been marked by three eras that I describe as such: The Age Of Value, Economy and NoFrills – this was the era where quality was fragile and unpredictable, and where price was the driver in every purchase. Packaging was barely a consideration and clumsy at best. The Age Of Emulation And Quaility By Tier – this was an era where national brand quality was imitated, down to the spec, and comparisons were made abundantly clear. Tiering was stringently executed. Packaging and branding were being realized as drivers by some. The Age Of Innovation – the era we are currently in, a time where retailers are trying to out-do each other on signature products that are uniquely designed and don’t live on the premise of pure emulation. Branding and product development (and the teams behind these missions) are the current drivers.
The Cumulative Effect Across Channels There is a cumulative, positive effect of retailers across many channels that has changed consumers’ psyche, attitude and impression of Private Brands. Outliers like Trader Joe’s, Wegmans, HEB, and Sainsbury’s are still highly regarded and noticed for their exceptional own brands, but the “catching up” that other retailers have done, especially in alternate channels, is stunning and oddly helpful to the mission.
Best Buy & Technology Best Buy is the largest electronics retailer in the U.S. (next to Walmart) and what they are doing in appliances, tv’s and home theater, and accessories is phenomenal with their own brand, Insignia. It is not some pallid imitator, no, it is a key media-forward part of their mission and is highly credible.
