I hope you are well.
This morning, I want to talk about a topic that will be more and more important today and in the years to come: Brand Equity.
When you develop a brand, we think a lot about the day to day and it is around its impact, its message, its profitability… .
Indeed, the founders I meet have trouble dissociating their company from their brand. Wierdly, they are the same who have difficulties telling their story and confuse “brand image” and “brand equity”.
The subject is becoming more and more important nowadays. Competition is strong. Every detail counts.
But what is brand equity? How to make sure that it is powerful? Why is it important?
When you measure the success of a company, there is of course the turnover but when you look at Coca-Cola, Google, Nike or Instagram, the other aspect is BRAND EQUITY.
Brand equity is often defined as the value perceived by your customers. This is something that is not measurable but you can use the 6 points in the image bellow.
With the brands that I work with, I often ask them to tell me simply: how a customer, with their eyes closed, is able to describe their brand, their values, their packaging, their logo and its meaning, their experience in general.
You can also ask yourself:
Does he remember the last collaboration you did with an artist? A photographer ? Is he aware of your mission and purpose? Is he loyal and how much? Does he give you information as if he was working with you?
The stronger your Brand Equity, the easier you will gain market share and diversify. Whether you have 2 years of existence or more than 50 years: it does not matter anymore, it is the perceived value that counts and it is necessary to treat it at every moment.
A few days ago doing researches online, I discovered the Air Jordan 1 Mid SE “Fearless”, a collaboration between the brand Maison Château Rouge and the Jordan Brand which will be available from November 30th.
I said to myself, “Wow, OK, this young brand born 5 years ago is working with Jordan / Nike. As we know, having this type of collaboration is so hard: how did the brand do?”
In fact, I realize by re-plunging myself into the brand’s journey and collaborations that the founder is a champion of branding and brand equity:
- the PERSONALITY and HISTORY of the brand are neat, deep, and very strong in SENS: they are authentic, consistent, identity-based, and extremely connected to their community beyond the product
Indeed, before Jordan, the brand had organized an event with Google and a festival with Western Union in Château Rouge, realized a fashion collaboration with concept-store Thank you, the e-commerce platform La Redoute, or the chain of stores Monoprix .
To give you another example of possible diversification and therefore revenue growth thanks to a powerful Brand Equity, that is the one of the fashion brand Jacquemus with the caviar brand Kaspia in the setting of restaurants: Citron and Oursin. The Jacquemus brand was ten years old this year.
In conclusion, do not hesitate to take a step back. Looking back on your brand and asking if you want it to be there in the next 50 years and if so, how?
How to continue to surprise your customers and mark their spirit in addition to what is the basis for all brands today: a good service and a good product?
With pleasure to talk about it.
Have an excellent day.