Does the World Really Need More Brands?
In the era of fear, confronting capitalism and brand purpose is essential.
Capitalism has been the driving force behind many human accomplishments. Everyone agrees that the Industrial Revolution, high technology, modern medicine, and the green movement have helped humanity by removing people from poverty, boosting living standards, and expanding life expectancy. It has offered the tools necessary to innovate in the face of some of humanity's most difficult situations. However, there has never been a time when the flaws in our worldview have been more apparent. In a world of free markets, brand-building, omnichannel strategy, and new technologies are all important considerations.
Product innovation, as well as discussions on how to manage our capital-driven problem, come across as nearly as nasty, if not politically incorrect.
A ghost from Christmas past has come to us, bringing with him the urgency of making short-term gains in exchange for solving issues that were formerly considered nebulous and far away. At a time when the globe is facing an uncertain future characterized by pandemics and climatic repercussions, political instability, and divisiveness, we have crossed a Rubicon of dissatisfaction with the current quo. According to the Edelman 2020 Trust Barometer, 57 percent of people throughout the globe believe that "capitalism, as it stands now, does more damage than good in the world."
Individual, political, and economic liberty is enhanced under capitalism, allowing individuals to live more fulfilling lives. However, in many industrialized countries, the illusion of unlimited development has led to a vast disparity between the wealth of the wealthiest and the poorest individuals, a disparity that is becoming greater by the day.
Infinite Growth vs. a Sense of Purpose
It is in this state of extreme complexity that brands may encounter their most difficult hurdles. The implications of climate collapse, the impending economic downturn, a global pandemic, geopolitical uncertainty, and pervasive human inequity are all interconnected crises that require brands and their stakeholders to ask themselves whether they are contributing to the problem or embodying solutions. Consumers are already asking this question, and businesses that do not provide satisfactory answers, even category leaders, run the danger of losing their competitive advantage. We don't have to shrink just because we're changing our perspectives on and definitions of growth. Nonetheless, it requires imaginative thinking, a strong awareness of the future terrain, and a novel approach to innovation. Old measurements, models, and assumptions may be our own worst enemies in a market where customer needs have altered to place a higher value on trust over novelty, long-lasting quality over flashy features, and a human-centric purpose over-excitement and marketing bluster.
According to research, more than 60% of shoppers look for companies they can trust before looking at pricing. In addition, their notion of trust has altered; consumers now want businesses to take an active stance on topics that are important to them, while the goods themselves address daily difficulties. Health, family, quality, and social responsibility are gaining precedence over tried-and-true emotional and aspirational motivations such as appearance and prestige, which are becoming less important. The Edelman Trust Barometer Special Report "Brands Amidst Crisis" provides evidence of this change in customer attitudes toward brands. Eight thousand respondents in eight countries were polled to provide valuable insights into how customers' priorities are altering.
The level of consumer anxiety has increased.
Fear levels are continuing to rise in the areas of physical health and psychological resilience, economic stability, and educational obstacles, among other things. The amount of trust that people have in companies that soothe their worries has increased by a whopping 400 percent. Trust fosters loyalty in ways that have never been seen before: Consumers that have a high level of confidence in a brand show significant gains in brand loyalty, repurchase, engagement, sharing of personal data, and word-of-mouth brand support.
Consumer values have changed throughout time.
The most popular comments were about spending more time with family, making more mindful purchases, and assisting others. Creating an external image, being seen as a trendsetter, and indulging in the finer things have all been pushed to the back of the list of important activities. Across the board, brands are expected to speak out about the most pressing social issues of our day and take action to address these issues.
Brand activity has become the new barrier to entry.
Rather than presenting stories about brands, brands are now creating stories about themselves, and actions speak louder than words. Plans and discourse about the future are meaningless to these customers, who expect firms to act now. Brands have a tremendous chance to reinvent their position by contributing to more holistic solutions, acting as advocates, and influencing social change. There is no getting around this assumption, especially among younger consumers: if a brand lacks a sense of purpose and social worth, it will be deselected.
As a result of these discoveries, there has been a significant shift in how customers make purchasing choices. Assuming an issue has a significant influence on consumer lives and brands are contributing to the problem, how can customers establish confidence in these companies? From safe working conditions and workplace discrimination to the economic and environmental effects of their choices, brands are being held responsible for the consequences of their actions.
Face-to-face confrontation with capitalism and brand purpose is critical in this time of anxiety.
Many of humanity's greatest achievements have been made possible by the forces of capitalism. It is universally acknowledged that the Industrial Revolution, high technology, modern medicine, and the environmental movement have all undoubtedly helped humanity by freeing people from poverty, raising living standards, and increasing life expectancy. Some of humanity's most challenging challenges have been met with the tools required to develop as a result of this initiative. Despite this, there has never been a period in history when the errors in our worldview have been more evident than they are right now. In a free-market environment, brand-building, omnichannel strategy, and new technology are all vital issues to take into account.
It seems like a ghost from Christmases past has returned to us, bringing with him the urgency of achieving short-term advantages in exchange for resolving difficulties that were once regarded as hazy and far-off. A Rubicon of unhappiness with the present status quo has been crossed in an era when the world is facing an uncertain future marked by pandemics and climate-related consequences, political instability, and division, and we have passed it. According to the Edelman 2020 Trust Barometer, 57 percent of people throughout the world feel that "capitalism, as it is now practiced, does more harm than benefit in the world."
People may live more satisfying lives as a result of the expansion of individual, political, and economic freedoms that capitalism provides. While this may be true in some industrialized nations, in many others, the illusion of endless progress has resulted in a tremendous imbalance between the riches of those with the most and those with the least, a difference that is becoming larger by the day.
The tension between infinite growth and a sense of purpose
This level of excessive complexity may present the most challenging challenges for companies to overcome. In the face of climate breakdown, an oncoming economic slump, a worldwide pandemic, geopolitical instability, and widespread human injustice, brands and their stakeholders must question themselves if they are contributing to the issue or representing solutions, among other things. Consumers are already asking this question, and firms that do not give appropriate answers, especially if they are category leaders, face the risk of losing their edge in the marketplace. Simply because we are altering our thoughts and notions of progress do not imply that we must shrink. The ability to think beyond the box, a clear understanding of the future landscape, and a creative approach to innovation are all required. In a market where customers put greater value on trust over novelty, long-lasting quality over flashy features, and a human-centric purpose over-excitement and marketing bluster, our outdated measures, models, and assumptions may be our own worst enemies.
Research shows that more than 60% of customers seek organizations they can trust before considering the cost. Furthermore, customers' perceptions of trust have shifted; they now want firms to take a proactive position on issues that are important to them while the products themselves solve everyday problems. It is becoming less important to be concerned about looks and prestige than it is to be concerned with one's health, family, and quality of life. It is also becoming less important to be concerned about one's social responsibilities. The Edelman Trust Barometer Special Report "Brands Amidst Crisis" demonstrates how consumer opinions about brands have shifted in recent years. Eight thousand respondents from eight different nations were surveyed to provide an important insight into how consumers' priorities are shifting.
The amount of consumer worry has risen in recent months.
Among other things, fear levels are continuing to climb in areas such as physical health and psychological resilience, economic stability, and educational hurdles. The level of confidence that individuals have in organizations that allay their fears has surged by a whopping 400 percent in the last decade. Unlike anything else, trust generates loyalty in ways that have never been seen before: Consistently confident consumers demonstrate large increases in brand loyalty, repurchases, engagement, the sharing of personal information, and word-of-mouth endorsement of a product or service.
Consumption ideals have evolved throughout history.
Some of the most frequently mentioned topics were spending more time with family, making more thoughtful purchases, and helping others. Making an outward impression, being recognized as a trendsetter, and indulging in the better things have all been relegated to the bottom of the priority list of chores to be completed. The expectation is for companies to speak out about the most serious social concerns of our day and to take concrete steps to solve these challenges across all sectors of the economy.
Brand activity has risen to the status of a new entrance barrier.
The trend is for businesses to tell their own stories rather than provide tales about other brands, and actions speak louder than words in this case. These clients do not care about plans or discussions about the future; they care about enterprises taking action today. By contributing to more comprehensive solutions, acting as advocates, and influencing social change, brands have a huge opportunity to rethink their position in the marketplace. You can't get past this perception, which is particularly prevalent among younger consumers: if a brand lacks a feeling of purpose and social significance, it will be passed over for other options.
A fundamental change has occurred as a consequence of these findings in the way that consumers make purchase decisions. Consider the following scenario: If a problem has a big impact on consumers' lives and brands are contributing to the problem, how can customers gain trust in these organizations? Brands are being held accountable for the implications of their activities.