Where Is the Brand Building at E-Commerce Startups?
Originally published May 27, 2014 here.
Prada = Avant-garde
Ralph Lauren = The original American preppy
Gucci — Sophisticated glamorous
Armani = Elegant
Versace = Sexy
Tory Burch = Uptown preppy
Alexander Wang = Downtown cool
The point of the above exercise is to demonstrate the power of brand identity. Each word or short phrase reveals a widely accepted description of the brand which is its brand essence. A brand’s vision, mission, personality, identity, image, and tone are among the other components of a complete brand platform that strategically grows the brand’s identity in a positive manner to help increase its equity. When do you know that a brand has a strong identity? You immediately have an image associated with it in your mind, one that is hopefully positive. The image comes from the story that the brand is telling its consumers. The story is often rooted in who the founder is and why they launched the brand.
Branding is something with which I see many e-commerce startups struggling. Some startups seem to be communicating about their brand using the same language they used to pitch their VCs, e.g. Radical transparency in costs. Others seem to struggle with specifics on how they are differentiated, e.g. Luxury for less. Product differentiation can be hard in a crowded market even with well-designed products, but building a focused brand with a clear message can help fill the gap.
For example, we know that Tory Burch, Michael Kors, Ralph Lauren, and Kate Spade are all selling the preppy all-American look. However, when you see a Ralph Lauren ad, you probably recognize that it’s for Ralph Lauren because of the colors, logo, setting, styling, photo finish, font, and the image itself. Same with Michael Kors — the particular shade of bronze on the models is a dead giveaway. Michael Kors owns this shade of bronze in his ads. He may even have it copyrighted. When I was in brand management at Kraft, there was a distinct copyrighted color called Kraft Red. Same when I was at Dannon with Dannon blue.
While e-comm founders who do not come from CPG or retail may not initially focus on building their brand, they would be well advised to begin the process sooner rather than later. Creating psychological connections with early adopters through the definition and usage of key branding elements can help fans better describe to others what the brand is about and help ensure the brand remains top of mind. To build a brand platform, I’ve conducted dozens of focus groups, ethnographies, store visits, and more to understand how consumers use my product, what type of language they use when talking about it, what types of feelings the brand evokes in them, and how they personify the brand. In an e-comm startup environment where barriers to entry are consistently lowered and established brands hold majority share of voice in the marketplace, a head start in brand building could lead to a major advantage for fledgling e-comm startups.
Originally published at https://www.tumblr.com.
