Volatility and disruption are commonplace today. Digitalization and globalization are changing people’s information and purchasing behavior at an unprecedented pace. Companies and brands are therefore challenged to adapt as quickly as possible to new trends in society, the workplace, corporate management, and marketing.
The so-called Millennials, the generation born between 1980 and 1995, and Generation Z, the generation born between 1995 and 2010, already make up around half of the world’s population. Both generations represent a fundamental shift in values compared with earlier generations: They are predominantly well-educated and characterized by a tech-savvy lifestyle. Fulfillment in their work is more important to them than status and prestige. More freedom, opportunities for self-realization, and more time for family and leisure are key demands of these younger generations. Maintaining a balance between work and leisure is important to them.
Changes in their purchasing behavior are also being recognized: The younger generations strive for convenience and indulgence (keywords include online shopping and home delivery). They are drawn to exclusive and personalized offers (keywords include tailor-made or customized products). The experience is more important to them than the actual product. They are thoughtful shoppers: They research before buying, read reviews, listen to word-of-mouth recommendations and inform themselves via social media. Millennials and Gen Z have a disproportionately high affinity for fashion and aesthetics as well as health and wellness. They are willing to pay premium prices for quality products (McKinsey refers to this as “premiumization”). At the same time, they prefer products with a purpose and a brand promise of sustainability. Brands across all industries are therefore challenged to meet these demands of the younger generations.
In addition to the shift in values, we are also concerned with the fundamental shift in communication to the digital world. Communication now takes place on the diagonal screen of the smartphone, with screens around 15 cm in size. There is little room for the display of intricate logos, unclear fonts, complicated layout systems or complex advertising messages. The layout specifications on social media also limit creative possibilities. Aesthetic concepts with a large proportion of images, on the other hand, are gaining importance. Film dominates the written word. Communication is becoming faster, simpler, and more emotional.
These changes have a major impact on the branding and marketing of all brands. The younger generation’s preference for brand experiences forces brands to be more lifestyle-oriented and brand experiential. A successful brand today must be able to be “experienced”.
Hugo Boss invites guests to the picturesque Boss Chalet during the legendary Hahnenkamm downhill race in Kitzbühel, where global brand ambassadors meet with key influencers for a unique brand event with live music, cocktail receptions, and cool parties. Prada launches the recently acquired traditional Milanese coffee house Pasticceria Marchesi as Prada Caffè at Harrod’s in London. Red Bull hosts breathtaking extreme sports events, and even the luxury fashion company Louis Vuitton has opened its first restaurant in Southeast Asia in collaboration with renowned chef Gaggan Anand.
Lifestyle and its associated aesthetics are in. They also become drivers in many industries where the topic previously had little significance. As a result, we see significant changes in branding aesthetics. Successful branding concepts are more modern, emotional, and experience-oriented in today’s world.
This trend applies not only to B2C brands but also to B2B brands, because the line between B2C and B2B is disappearing. In the digital age, the showroom is always open. That’s why marketing in B2B industries is becoming increasingly important. And companies have now realized that B2B buyers are not “corporate robots” and have a growing interest in aesthetics and brand experiences as well.
The aesthetics trend is also being driven by the many digital disruptors that have entered various markets in recent years. These are often Anglo-Saxon brands which, by virtue of their origins, have a great affinity for design and aesthetics. The branding concepts impress with simplicity and clarity. They are designed with a “digital-first” approach and are thus perceived as very contemporary and modern. However, unfortunately, not all brands have recognized this trend yet. Far too many brands from different industries do not meet today’s requirements regarding aesthetics and brand experience. They appear dull, predictable, and unattractive. They lack contemporary design, sustainable brand experiences, and emotional appeal to customers. And compared to contemporary competitors with a strong affinity for aesthetics, they seem to be from a different era. The qualitative differences are becoming increasingly apparent. Thus, a tension arises between the old and the new world.
Can such outdated brands be successful and thrive in a world where information and purchasing behavior are fundamentally changing? I don’t think so. So, the future will be exciting.