Keeping long-standing brands relevant in the digital age
Legacy brands are back. In the vernacular of luxury, you might say they are the new black. When Apple surpassed Coca-Cola three years ago to take the #1 spot in Interbrand’s best global brands study, it triggered a cascade of commentary on the rise of brands born of a new and different age. However, delve deeper into the study and what’s fascinating is the ascent of brands that have spanned generations. New entrants this year feature 60s icon Mini, revving in at #98; Lego, an exemplar of creativity born from the constraint of a depression, with an awesome arrival at #82 and Moët & Chandon at #99, one of the oldest brands in the LVMH portfolio which dates back to the 18th century.
Moët & Chandon also tops the five oldest brands in the list (accompanied by Colgate, Citi, AXA and Hermès) which span a combined legacy of over 1000 years. AXA breaks into the top 50 Best Global Brands this year and Hermès, one of the top five risers in the report, increased its brand value by 22%. The five youngest brands, by contrast, (Facebook, Google, Paypal, eBay and Amazon) haven’t yet amassed a century between them.
Interbrand’s 2015 Best Global Brands report examines what it takes for brands to succeed in a hyper-fragmented world. As brand experiences that are both immediate
and personalised are expected by consumers, business and brands need to move fast in order to keep pace. The success of a brand has little to do with a brand’s age, but everything to do with its ability to stay relevant. The question is, what are these legacy brands doing to stay relevant?
A common theme is that they have user-centricity at their core. They are using tech to connect with customers in more meaningful ways. Ultimately they are succeeding in providing ever more integrated experiences for consumers, and blurring the boundaries of traditional sectors of business as they go.
Consider Lego. It’s a truly great example of a brand whose original vision from 1932 has stretched beautifully into the 21st century. The journey from toy brand to entertainment brand has been driven by Lego embedding innovation at its core and its fusing of the physical and digital.
An even more fascinating movement among the legacy brands is the movement across brands – the “brand tangos” that boost their reputation through collaboration. ask ganesha . Think the Apple Watch Hermès cross-over. Legacy brands are tapping into tech brands to increase awareness and connect with consumers. Tech brands are tapping into legacy brands for their heritage and exclusivity.
The resulting blurring of boundaries increasingly calls into question whether we will even be defining brands by sector in years to come. Consider Apple’s reach into the traditional domain of financial services with Apple Pay.
Collaborations in various manifestations will continue to rise, as brands look to complementary capabilities to exert their influence and desirability. Just this week, the newly combined Yoox Net-A-Porter climbed on its first listing on the Milan stock exchange, and LVMH (owner of Louis Vuitton and Moët & Chandon) has asserted a serious commitment to e-commerce. At the same time, Hugo Boss is accelerating the cutting of its e-commerce cloth and Condé Nast is planning to enter the fray with the hotly anticipated e-commerce venture Style.com.
The level of sophistication needed for a brand to maintain its presence as one of the world’s most highly valued is not to be underestimated – but the principles of success are fundamental. A brand needs to evolve constantly to stay relevant but it also needs a centre of gravity, a clear vision and a commitment to stay true to the core of its DNA. A brand still has to find a place in our hearts and minds.
Story first appeared on The Guardian Website – http://www.theguardian.com/media-network/2015/oct/09/brands-relevant-digital-age?