PPB January 2020

by Danielle Renda MARKET SHARE LikeThe Seasons, Brands Change, Too A new study about the world’s top consumer brands provides insight as to how brands can stay relevant, profitable and sought-after. It comes as no surprise that technology is dominating the consumer goods space, and it’s one of the latest findings of Iconic Moves: Transforming Customer Expectations, a report on the 100 leading consumer brands of 2019 published by Interbrand, a New York-based marketing consultancy and a division of Omnicom. The report named Apple, Google, Amazon, Microsoft, Coca-Cola, Samsung, Toyota, Mercedes-Benz, McDonald’s and Disney as the world’s leading brands, with tech and electronics companies dominating half of the top positions. Amazon was also named one of the top-growing brands, following Mastercard and Salesforce, but Apple was determined to be the highest-valued company worldwide, with a net worth of around $1 trillion. The report also revealed insights about consumer demand, stating that as consumers have access to more information, which allows them to become better informed and connected, their demands and expectations of brands grow. Consequently, this changing dynamic of consumers’ brand expectations have led to four trends: abundance of choice, erosion of loyalty, speed of adoption and shifting frames of references. Consumers are inundated, now more than ever, with the extreme power of choice. Looking to purchase a new pair of boots? There is a plethora of companies offering boots, with new brands launching every year, especially in the online space, making it less likely for consumers to remain loyal to their favorites. This segues into the high-paced speed of adoption, with technology companies, like Apple and Google, significantly aiding mass adoption of technologies. This can be witnessed by the number of people who flock to Apple stores whenever the latest smartphone is released. Not only do consumers know about product releases, but they make plans around it. When the iPhone X was released at retail for $999, for instance, some consumers set up tents, air mattresses and chairs outside of the Apple Store in Chelsea, New York, and camped out until the next morning to be among the first to get their hands on the device. All of these factors have contributed to consumers’ shifting frames of reference. Consumers, now, have become more than accustomed to abundance. They want better, faster, stronger products, they want as many choices as possible, and they want it all at their fingertips. Because brands, like Netflix, have responded by giving consumers what they want—and topping it off with more—consumers have come to expect abundance and immediacy across the board. All the heightened consumer expectations, abundance of choice, high-speed rate of adoption and shifting frames of reference have given way to an extremely competitive marketplace, and one in which peoples’ expectations, according to the report, are evolving faster than the world’s most competitive businesses. For brands to remain in-the-know about what is happening, Interbrand doesn’t suggest taking a research and development route, but rather, visiting forums, listening to people’s conversations and paying attention to habits and demand. The report also 82 | JANUARY 2020 | THINK