The challenge for brands is Darwinian. This means that those who survive are not the strongest, nor the most intelligent, but those with the greatest capacity to adapt to change. To give you an idea, of the American Fortune 500 brands from 1955, 429 no longer exist. Sad, isn't it? The business environment is far more detrimental to brands than the evolution of species. It kills many, and the causes are diverse.
Unfortunately, in Brazil the problem is more chronic. Besides our economy continuing to falter, the business environment is inhospitable due to bureaucracy, lack of credit, and outdated labor laws. Therefore, surviving in a country that ranks 130th out of 185 countries most difficult to do business in is not easy. The most frequent causes are: lack of planning, the practice of copying existing models, lack of investment in the brand, failure to adapt to market needs, among other reasons.
That's why it's crucial to think carefully about what can bring value to your business before embarking on this venture. How can your brand help you build value? Some simple questions are good filters to reflect on the relevance of your business. For example: If my brand ceases to exist, will people miss it? Does my product/service make a difference in the world?
In addition to the ever-increasing mortality rate of businesses, "capitalist consumption" is being called into question, leading us to wonder if we can continue with excessive consumption, given the environmental problems we face, high unemployment, and even globalization itself threatening markets.
Alongside the economic crisis, we are experiencing a digital revolution, which is creating a true... strike In several markets, Netflix ended Blockbuster, which was the largest American retail chain. And it wasn't just digital streaming that brought down Blockbuster. Netflix's entry into the market was very strategic. It created a more relevant proposition for its consumers, delivering the tape to their homes without charging for late returns, and this was very well received by its consumers, who hated paying those late fees. When streaming came along, boom! Those consumers who were used to receiving the movie by mail could now download it from the internet. In this way, the brand conquered the world through the relevance of its value proposition.
Similarly, we've seen other movements unfold, such as Kodak closing its doors, hotels complaining about the power of Airbnb, and taxi drivers around the world striking because of the Uber app. It's difficult to stop this revolution that brings new ways for brands to connect with people.
Given this scenario, the burning question is: what becomes of the brand's role? The brand's role has a clear promise: to create long-term value relationships with all stakeholders, to differentiate itself by doing things differently from the market, to evolve while remaining relevant to its audiences, to create ownership for recognition in its territory, and to be consistent in building the future of the business.
