Sometimes we crawl into Friday looking forward to the weekend. ‘Friday’ we think is a breeze – and then we notice something that makes our blood boil, something that makes you wonder how an international publication can even publish such an article. So now we have to shake the end-of-week cobwebs and get to work to type a response:
Wired has just published a piece by James Surowiecki (a staff writer for The New Yorker and author of The Wisdom of Crowds) called ‘The Decline Of Brands’. It just knocked us sideways that they’d publish such an ill-thought through article.
My main criticism with his article is that the author has failed to grasp what a brand or branding is all about. He views branding like many other people do – that it’s a logo, that it’s an ad campaign, that it’s a value on a comapny’s accounts, that it’s even a product. Branding is corporate ethos, branding is the way your company behaves to create a valuable relationship with your customer, it’s the way your staff think, it’s the way you source your suppliers, it’s the way you make your product, it’s the way you let people know about it. It’s everything your business does. Everything.
Take a look at American Apparel. Look at their growing success, look at their product lines, look at their staffing policies, look at their stance on suppliers. They are a living breathing modern brand led by Dov Charney.
Brands are not declining; they’re just churning over like they always did. We spend too much time watching the brands we know. The ones who offer a valuable experience remain relevant to consumers; the vast majority fail to constantly offer such an experience and are soon forgotten. Ever laughed at the copy on an ad for an old cigarette brand? Is the fact that we don’t smoke that brand of cigarettes a sign that brands are declining or a sign that cigarettes are no longer relevant today?
We all remain loyal to brands and we always will. It becomes personal – why don’t I care about Tivo but I love brands like Typepad, Kid Robot and Gawker? Customers aren’t becoming fickle at all – we’re just having relationships with the brand experiences that are relevant to us on a personal level. Zara may be an amazing business case-study but the store is still pretty homogenous as it sits side by side with the other retailers on New York’s Broadway in SoHo. Before Zara we had Top Shop and before Top Shop there was Chelsea Girl.
I agree, Brands cannot go on trying to fool people. We at PSFK have always argued that brands must become valuable and valid experiences for consumers. The reason why we get these Google-researched sound-bite articles from Surowiecki is that brands have failed to live up to their promise; they have failed to provide the experience. Why have Mary J Blige with Madonna on an ad for the GAP when the experience of entering a GAP store is a million miles from dancing with the stars at London’s Met Bar.
Sure it may appear to “Prada can still command a heft price premium†but Surowiecki fails to learn from the intricacies of the brand’s relationship with customers. Sure they have some nice ads and some shows but I argue that Prada’s relationship is primarily built with its target market (and note, when I say target market that’s not me or you) through their stores’ Account Managers. These guys create an intimate relationship between the customer and the brand. They spend $30,000 on the latest range for a client without her knowing because the Account Managers know their needs. What a brand experience!
Visibility through “the crush of magazines, Web sites, message boards†is not a challenge to brands – it’s an amazing opportunity to connect for brands to connect to their customers. Digital is one of the most exciting mediums to enhance the brand experience. Prada doesn’t have a website. Never did. But Prada creates valuable experiences with their activities with their Americas Cup work on the web.
And the web helps deliver another aspect of the relationship and experience. Prada has always relied on the power of networks. I would argue that Prada doesn’t give ‘a monkeys’ for mere, mere mortals like you and me. They have no website to let us gawp at the price of their clothes. Why do we all worship at the temple of Louis Vitton and Prada then? Because of influencers, because of WOM, because people in the know rave about them – and the web suddenly multiplies this effect. How can brands be in decline when many of us have crave the brands that net-gurus like Josh Rubin recommended? Josh exemplifies one of the key opportunities the digital age offers brands.
Surowiecki arguments don’t all hold up either. He combats Krispy Kreme with Atkins. Atkins? Atkins was a fad, a faux brand. It’s a logo on a box, on a book. Brands like Atkins made Surowiecki wrote his article, made Naomi Klein write her book. We’re not in the middle of a health boom, we’re in the middle of an indulgence boom! Ask Starbucks with their Chantico, ask Pizza Hut with their extra large family pizzas. Been to the ‘burbs lately, Surowiecki? People love the brands that know them and offer them the experience they want.
And as for calling Coke a ‘perennial’? Coke is the classic example where the brand has lost touch with its market. Coke is an old geezer. The kid’s don’t like Coke like we did. In fact, everyone who loves Coke will be six feet under within 20 years. They’ll be putting Coke ads in museums beside those cigarette ads before we know it.
Sure, Surowiecki cites better products helped Nike, Gillette and Disney’s success. It wasn’t the better products – it was because the company lived and breathed their brand values and therefore created better products.. Nike was and is about perseverance and today everything American Apparel does is about liberty.
Let us kill all this misunderstanding about branding: Long live living and breathing the brand!

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Like your thinkin’ PSFK. Keep up the agit!
November 6th, 2004 at 6:25 pm
I disagree with your assessment of the original article. One thing that is clear a strong brand cannot make up for a bad product. Now your theory is that a good brand infuses everything they do with a philosophy that makes it successful. So where did Nokia, et.al go wrong? These are modern companies with professionally managed brands implemented with the best talent money can buy. But the brand is not the answer for them.
A significant inconsistiency between the original article and your response is your selection of case studies. Your focus on the service industy suits your argument well and successfully. However Surowiecki’s focus on product-oriented companies is equally appropriate to his theorem.
Looked at as a whole I propose that there is a time and place for brands and it is not a universal truth. A good consultant should be able to help their client understand the level of investment in brand vs. product for maximum success, not just promote the promise of brand that won’t consistiently deliver in all situations.
November 6th, 2004 at 9:47 pm
I was equally puzzled by Surowiedki’s comments. While some of his points are interesting, I am wary of people who use diparate bits and pieces of data strung together to justify an argument.
Yes, the information age has produced a more savvy, sophisticated consumer. But this does not necessarily lead to the ‘decline of brands.’ Surowiecki makes the mistake of interchanging thoughts from economic trends, technology trends, and brands to come up with a confusing arguement.
Yes, five years ago, Sony charaged 44 percent more for its DVD players than the average manufacturer, compared to 16 percent today. Is this really a problem with the brand or the reality of technology and economics? I found it amazing that Sony even got a 16% premium. DVD’s are commodities–like sugar. Get it?
Kudos to Sony for still hanging in on the DVD front. Sony, being the great brand as it, will most likely be releasing innovative products in its current category and in new categories that it will create. Remember the Walkman? The same phenomena occurred then, and that didn’t result in the demise of the Sony brand.
And, as for the CyberHome $50 DVD’s…again, this does not invalidate the Sony brand at all. And perhaps there is room for both. There are probably plenty of poor college students who now own DVDs who couldn’t otherwise afford them. Or, plenty of households that have a Sony in the living room and now have a CyberHome in the kid’s room. (Remember, Americans are uber consumers who will always want more) This may not be the case all of the time, but again, Surowiecki’s argument is so absolute that it is important to poing out the nuances that he ignores.
And as for Zara and H&M (and I will through Target in there too), they are innovators in their own right: Cool looks and cool prices. Wow. (unfortunatley, we have never had a Top Shop in the US) But again, this does not negate the success of brands like Coach and Burberry who have been reinventing themselves. Neither does it humble Prada and Louis Vuitton (acknowledged by Surowiecki). While all in the fashion category, these brands have fundamentally different propositions: all fashionable, but varying degrees of quality (do you know how long Zara pants last?), service (see posting above), and the overall consumer experience. Finally, in the spirit of DVD players, take it from a spendthrift in New York: Three years ago I would only buy a new pair of Prada shoes at the beginning of every season. Now, I buy new a pair of Prada shoes, a pair of Prada slacks (salary increase), as well as a few pairs pants and some shirts from Zara and H&M thrown in for good measure.
Long live brands.
November 18th, 2004 at 11:06 am
Perhaps if people used other terms other than “brand” and “branding” then there would not be a debate to be had? It seems there are many valid points but people are talking about different things or at least coming from very different viewpoints. I have a feeling that some people would just like brands to be dead even if they do not believe they really are ;O)
November 19th, 2004 at 11:23 am
again…..brands are not logos or logos or name plates. Branding is not the act of sticking a logo or a label on a product or service. Brands are about the total sum of experiences that anyone has with your product,your service or your company.Seen in this light, branding is a fact of life. Neither good or bad. It just it is. As long as people have any kind of experience with your product,service,or company, your brand will exist.The real question is whether it will have a succesful life or not.
November 22nd, 2004 at 4:09 am