The global financial meltdown and the recession of Late 2008 and 2009 has been more than a good many top brands could handle, and many are dying on the vine. Eddie Baeur for instance is filing bankruptcy, and all the top perfume, clothing, jewelry and designer wear brands are hurting. Not long ago I was cruising Rodeo Drive in Beverly Hills, no I did not see Paris Hilton and entourage that day, as she must have come the day before; but what I did notice is stormy weather in the store fronts trying to tackle turbulent times.
Global Branding expert, Sara Batterby of Akel Branding in Saulsalito made a very astute comment recently, I forget which publication, but she noted; “the relationship between values and brand loyalty and what that really means for marketing communications and branding,” which really got me thinking about the hard reality of branding in a global recession.
You see many brands are doing whatever they can to stay alive right now, some are giving steep discounts, but when the recession recovers they will have diminished their high-end brand names. Many believe that the answer is to communicate the strength of the product and its value, both intrinsic and durability, and ability to hold its price.
Additionally, I was reading something in one of the International Business University newsletters the other day that was along that line of thinking, I think it was in Wharton Business Schools Newsletter, and there was a whole series of these of articles about the huge losses and declines in profit from Europe’s top brands, a few of these big names have already filed bankruptcy. Just like many of the top retailers in New York (brand names in themselves) who sell these products.
There seems to be a thirst for solving these issues for big high-ticket brands in the recession. But, no one has any really good answers. They talk about value, but in a recession many of these former branded product consumers are turning downward towards Wal-mart. If you are a brands expert, you might really enjoy reading and downloading the papers at the Brand Channel website that discuss these issues at length.
Are all the articles and papers on this topic of high-end branding relevant? Does anyone really have the answers to dealing with recessions, steep price discounting, and lasting value when it comes to Brand Loyalty? How many more major brands are dying out there, are they in survival mode now? Well, not all the research, and articles are spot on. Some I completely disagree with, but if you are smart and know the industry, you can weed through the fluff, nonsense, and obvious writing by consultants of the brands they have as clients. Think about this.
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