Innovation Design
Innovation Design

Brand management for millennials.

Customer centricity, digitalization, transformation – in our disruptive times all signs point to change. In addition, companies face new challenges, among other things, in the form of changed target groups: new buyer generations such as the millennials are increasingly pushing the desired individuality of the previous generation X to the top: “The more extraordinary and the more exclusive, the better” is the motto, combined with a constant striving for the best possible quality of life. Current studies show that for millennials, products and businesses must not only be aesthetic, but also original and surprising. This generation is horrified by standardization, which is a considerable disruptive factor for the desire to shop.

People and their buying habits are currently undergoing fundamental changes. Digitalization provides easy access to products and services, dramatically changing customer expectations across all channels. And because digital channels focus mainly on user-friendliness and convenience, customer experience is also gaining enormous importance in stationary trade.

In these times of monumental change, many brand managers seem to overlook one central question: Will my brand meet these new requirements? Brands are in constant flux. If a brand wants to be strong, in other words – successful, it has to constantly renew itself particularly in times like these, in order to stay relevant for the customer. That is why the following questions need to be asked at regular intervals:

1. Can I be successful with my business model in the future considering the changing buying habits?

Brands are forced to repeatedly question their own business model in terms of congruence with customer needs, such as Ikea: While the Swedish furniture manufacturer’s online sales are not exactly shining with record figures, Ikea is increasingly pushing its points of sale from the outskirts to the inner cities and – together with a novel furniture rental offer – is thus targeting new, young target groups and their changed lifestyles.

2. Does my offer meet customer needs?

As we now know, millennials like to buy in an aesthetic ambience. Purely functionally designed convenience stores with packaged salads to prepare yourself do not meet this requirement. The new magic word is “sensual upgrading”, that for example Migros Daily has focused on. Although the products are portioned for immediate consumption (salad bowls, sandwiches, pizza slices, fruit cups, etc.) here as well, they are presented in a staged ambience that makes you want to enjoy them.

3. Is my promise of performance different than the one of my competitors and therefore makes me unique from the customer’s point of view?

Strong brands stand out from the competition through clear, differentiating positioning. Davos Klosters proves this with its reorientation: While the Bünden tourism region in the past stood for an “all-purpose” offer and thus offered “something for everyone”, but had no convincing argument why the guest should not spend his holidays elsewhere, Davos Klosters is now concentrating on its real strength: The brand is now focusing on its unique range of polysports, which is without equal in the Alpine region – Davos Klosters is the sports Mecca of the Alps.

4. Am I attractive enough for my customers?

How many people today still want the oak wall unit in their living room, as it was offered by the furniture discounter Toptip years ago? Certainly not the millennials. Accordingly, the question arises: Can I sell lifestyle products with a discounter brand presence? The answer is clear: no. Toptip has consistently converted its brand into the more lifestyle-oriented “Livique” in the sense of customer centricity and is thus focusing on the millennials as a target group.

5. Does my brand image meet the increasing customer needs in terms of aesthetics and originality?

Brand aesthetics has gained in importance over the last 15 years. What used to be reserved only for luxury brands is now also true in mass markets and even in industry (B2B). Brands must constantly adapt their appearance in the sense of originality. A prime example of this is Apple: The “followers” of the Cupertino brand are accustomed to the fact that Apple constantly ensures an appearance at the POS that satisfies aesthetic and originality wishes. The new shop concept of the Apple Town Squares, for which Angela Ahrendts, former CEO of Burberry, is responsible, turns the POS into a lifestylish mixture of salesroom, educational institution and meeting place. The shops become greener: There are trees in the store, the product tables are made of wood, and all the electricity needed comes from renewable energy sources. Regular events such as “Today at Apple” or programming courses for children round off the purpose of the building in cozy side and conference rooms.

6. How can I create customer experience for my brand?

In times of booming online trade, the question arises as to what kind of experiences the brand can use to bring its target groups to the stationary POS in order to offer the customer added value compared to online shopping. The American fashion brand Tommy Hilfiger has a state-of-the-art e-commerce model in which the products shown can be ordered immediately after a fashion show. This way, Tommy Hilfiger is outsmarting the fashion brand Zara, which has always been one step ahead of the prêt-à-porter fashion brands with its cutting-edge collections in retail outlets. With a store-of-the-future concept with POS digitization and as a consequence of a product range reduction in the store, Hilfiger creates space at the POS for staged customer experience offers such as coffee shop, tailor’s studio, online ordering, etc.

Conclusion

Unfortunately, there are too many brands that never ask these questions and therefore have not changed their brand presence in years. Without relevant changes, however, they will become predictable for the customers. And predictability only means one thing in times like these: sooner or later the brand will disappear.

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