Tag: Values

Have we woken up from the American dream?

Posted on by Knom

When Country Matters More Than Product: A New Burden for American Brands

This turbulent geopolitical context we are currently experiencing is not foreign to the world of branding. Just as individuals have “personal branding,” countries have what’s known as “nation branding.” Nation branding is essentially the intangible value of a country’s reputation and image — and it’s truly important. A country’s brand can affect things like foreign investment, tourism, or even the image of brands from that country, which may suffer through association.

Of course, a country’s brand is shaped by many factors, but undoubtedly one of the most significant is its current government. That’s why today we’re going to talk about how the United States’ brand has changed since Donald Trump arrived at the White House.

As you can imagine, the change has been radical. Since the Cold War era, back in 1947, the U.S. positioned itself as a leader and defender of the West, championing values like freedom, progress, modernity, and development — in contrast with other regions such as war-torn Europe, or authoritarian examples like China and Russia, where individual freedoms are restricted.

This image, accompanied by an expansive foreign policy, led to numerous agreements with regions like Europe, Japan, Morocco… heavily influencing the social imagination and ideals of many of these countries. Having ties with the United States was seen as something positive, and the pro-American narrative enjoyed widespread support from the general population thanks to the strong country brand that had been built.

Many major companies benefited from this situation, which helped drive their international expansion. Brands like Coca-Cola and McDonald’s entered new countries at lightning speed, thanks to the groundwork laid by their home country. More recently, Silicon Valley has come to embody global values of entrepreneurship.

But has all that come to an end?

With the arrival of “America First,” a new tone, threats, and trade wars that came with this new approach, more and more people around the world are beginning to see the U.S. as a threat — and that carefully crafted image is crumbling in our minds.

This is not a superficial change. We’re witnessing a deep transformation that strikes at the very core of the ideals, values, and narrative of the America we once saw as an ally.

Just as the country’s image once helped American businesses thrive, this new phase is now weighing them down. Brands like Tesla, once icons of modernity and future-thinking, now, through their CEO, project reactionary and ethically questionable ideas. How is it possible that Elon Musk hasn’t considered the impact his personal image has on his companies?

But Tesla isn’t the only one. Even brands without such an aggressive positioning — like Coca-Cola — are suffering consumer boycotts in countries like Denmark, all due to the U.S.’s new stance on the global stage.

In contrast, on the other side of the Pacific, Chinese brands have been evolving their image and meaning for years. Companies like Xiaomi, Huawei, Aliexpress, Shein, or Temu are undergoing unprecedented international expansion, partly thanks to Xi Jinping’s efforts to build ties with countries around the world.

China’s model, based on capital investment and trade agreements, has helped solidify its global positioning, and the perception of its brands has changed over time. Gone are the days when “Made in China” was a sign of poor quality.

Few things have united such a diverse range of people under one banner as the rejection of the oppression and dominance radiating from the new, MAGA-style United States. A rejection that has spilled over to American brands which, without intending to, are seeing their international business threatened.

When this values-based and commercial war ends, the damage to brands will only just be beginning. The shift in how global consumers perceive the American brand is already underway, and reversing it will be no easy task.

The big question is: Can the nation brand recover? What will be left once the storm ends?

Should brands sponsor a World Cup that goes against their values?

Posted on by Knom

Qatar World Cup puts global brands on the ropes.

Sponsoring a World Cup is an opportunity for any brand. It means having a global audience of hundreds of millions of people and linking your brand to the world’s most popular sport.

However, things change when the host is a country where human rights are not respected and whose values clash head-on with those of any global brand.

Faced with this, there are only two positions to take: either to be totally against it, or to cover one’s eyes and focus on celebrating soccer. And there are examples of both positions with greater and lesser commitment.

Perhaps the most belligerent brand in this regard has been BrewDog. The Scottish brewer has declared itself a “proud anti-sponsor” of the World Cup in Qatar in a series of controversial billboards. But even BrewDog has been branded as hypocritical because with this action, at the same time, it is encouraging its audience to watch the World Cup. The brand has defended itself by saying that all the profits linked to this action will go to fight for human rights.

This World Cup has been a real test to check the real commitment of brands to their values. Because, although we have already experienced other controversial World Cups in this sense, today the world is different: our society and its values have evolved. And so have brands and what consumers expect from them.

Because, more than ever, commitment is relevance and coherence is credibility.

Should brands position themselves in the face of a war?

Posted on by Knom

It is not about punishing but about being consistent with your values.

For better or worse, brands are not oblivious to the social context in which they live. In this sense, in recent weeks we have witnessed different reactions to the Russian invasion of Ukraine by companies.

From the exodus to the boycott, through solidarity initiatives to help refugees. Because, however difficult the situation, today’s consumers expect strong responses from the brands they buy (only 16% are against brands getting involved in one way or another).

In recent years, companies and brands have demonstrated real power to bring about change, impacting issues such as racial justice, feminism and sustainability. Brands have become another tool through which to support causes and show our way of thinking.

But just as consumers use brands as a banner of values, they also subject them to continuous scrutiny. In fact, according to Hotwire’s ‘Socially Conscious Brands’ study, 53% of consumers have at some point vetoed a brand because of the way it behaves.

In any case, as much as big brands are perceived by consumers as global players as important as some governments, their role is not to wage war.

And that is precisely why they should neither reward nor punish anyone, but rather reflect and be consistent with their principles as a brand.

Is there a loophole for brands on Black Friday?

Posted on by Knom

In the face of compulsive consumption, awareness and education.

This latest edition of Black Friday has also been marked by the pandemic. Although not all, there are many consumers who, faced with delayed shipments and the feared shortage of items, have put aside their environmental conscience and run for discounts that would make the bill a little lighter on Epiphany.

For this very reason, it is difficult for some brands not to jump on the bandwagon of this day of sales and promotions that year after year breaks sales figures and kicks off the Christmas campaign.

However, it is precisely on days like Black Friday when brands must be brave and take the opportunity to reaffirm their values and position themselves firmly in the minds of their consumers.

In fact, more and more initiatives are emerging in this regard under names such as ‘Green Friday’, which promotes the circular economy from the second-hand market; the ‘Buy Nothing Day’, which calls to stop consuming for 24 hours; or ‘Giving Tuesday’, which promotes solidarity and generosity only one day after ‘Cyber Monday’.

But, beyond creating ‘anti Black Friday’ alternatives, this movement tries to advocate for a conscious consumption, where the driver is not ‘the bargain’ or the ‘limited time’ but the conviction that this is the product or brand that best fits the needs of each customer.

A more restrained and fairer consumption where aspects such as local, small commerce and workers’ conditions, among others, come into play against excess.

Why should all brands be inclusive?

Posted on by Knom

Inclusive design removes barriers and truly puts the consumer at the center of its strategy.

Brands are experiencing an evolution in terms of diversity, inclusion and feminism, finally taking a step forward and betting on giving space to groups that were previously underrepresented.

We see how diversity is more present in the communication of brands but also in the design of their products. Ideas that seemed to be niche markets are opening the way to address needs that, although they have always been there, previously escaped either because they were taboo subjects or because they did not fit in with the canons of beauty and the normative bodies of the moment.

A new perspective that, for example, with respect to diversity of origin, translates into product innovations ranging from swim caps for African-American hair to makeup specially designed for South Asian skin tones.

In the same vein, we are witnessing the rise of neutral and non-binary products that are gradually blurring the gender barrier. This phenomenon is affecting not only the fashion industry but also other industries such as cosmetics, traditionally restricted to women.

At a time when the trend is towards authenticity, consumers expect brands that support them as they are.

Why is privacy a key value for technology brands?

Posted on by Knom

Big Data should be a win-win for users and brands.

Downloading an app, reading an article… Nowadays it is difficult to make profitable use of the Internet and the tools of the digital environment without having to accept an endless number of data transfer consents.

And although it is now part of the digital routine, as consumers, we are starting to ask ourselves what is done with our data and what we receive in exchange for giving it up.

Because while the benefits of technology are clear, its use should not mean giving up control over our data. We should be able to decide who tracks our searches, who knows our location, who has access to our images and, above all, whether this exchange of information is really worth it to us.

In a year in which the public and private spheres have blurred as never before, we are also more aware of the value of our privacy. And brands know it.

Apple, for example, has taken a step forward by making its iPhone 12 a champion of privacy management.

Netflix, for its part, continues to be a benchmark in terms of the use of data for the benefit of the user. Its management of big data and its algorithm for predicting which content to recommend based on our use of the platform manages to create bonds through a sense of intimacy between the user and the brand.

And that’s the key: using our information to improve our user experience and not just to sell us new products.

Why are your employees your best brand ambassadors?

Posted on by Knom

The brand, more than a communication tool, is a behavioural framework.

Today, being more authentic means being more transparent and, in order to be so, our way of being and working must coincide with what we communicate to the outside world.

In many cases, perception begins to be built ‘through the roof’ by resorting to communication actions that are not based on the reality of the brand.

Powerful brands are built from the inside out. That is why working on employee engagement is the basis for building a strong brand, as well as being a very profitable move for the company.

Engaged employees have a high impact on the organisation, internally and externally. It is no longer just that they believe in the vision of the brand, but that it motivates and empowers them not only to do their job better and know how to transmit it, but also to inspire them to propose ideas and innovate within the brand.

And for this, we must start directly in the selection process, looking for candidates who are aligned with the brand from the outset. Taking into account their training and expertise but, above all, their values and motivations.

A good example of this is Patagonia, which only hires people who enjoy spending time outdoors, candidates whose interests reflect the company’s ethos. Once on board, employees have the option to spend part of their working day volunteering on environmental projects. The result is a strong and consistent brand, with an employee turnover rate of 4%.

Employees are a critical part of creating a work environment and culture that truly embodies the brand promise. Only when the brand values and purpose emanate from within the company will we be able to build a credible brand story.

Should brands take political positions?

Posted on by Knom

‘Brand love’ is achieved by taking risks.

After the assault on the Capitol, some social networks have silenced Trump and many other brands, such as FedEx, Hilton, Mastercard and Microsoft, have broken ties with the speech of the still president.

Faced with a more active and aware public, and aware of their power and influence, the so-called ‘activist brands’ are emerging which, committed to their principles and values as a company, dedicate time and effort to fight for the causes they consider just.

While there are issues where there is a certain global consensus and where it is easier to take a stand, such as the fight against climate change or equality, the matter becomes more complicated when we take the debate to political leanings.

Growing ideological polarisation increases consumers’ desire to know whether the brands we buy are aligned with our way of thinking and our values. The idea of ‘voting with your wallet’ is expanding, but how far should brands’ political engagement go?

What’s in store for brands in 2021?

Posted on by Knom

In a year in which the most searched for in Google has been “Why?”, we would like to end December with a bit of uncertainty for 2021 (at least in terms of branding).

For this reason, we would like to share with you some of the trends that most of the main branding consultancies and blogs agree on, and we would like to thank them for always keeping an eye on what the future holds for our sector.

Purpose will continue to be the beacon for brands

Beyond the what, the why a brand exists will remain at the heart of the strategy. A brand purpose nuanced by the how. We are at a time when consumers have become aware of the impact of their consumption choices on society, and are increasingly concerned about processes, origins, routes and so on. This year more than ever, brands have to combine profit with social impact.

There will be greater environmental awareness

Like people, brands are increasingly aware of the damage done to the environment by our consumerist excesses of the past. That’s why this year we will continue to see a surge in brands linked to the ‘Climate Movement’ and aiming to help consumers move towards a more ethical and respectful lifestyle.

Brands’ processes and backstage will be more open.

Closely related to the previous two points is the trend for brands towards transparency, honesty and participation. Eliminating the distance between what we say and what we do has a lot to do with using more transparent communication codes, but also with involving our audiences more in our own brand strategy.

Experiential will be the priority

In a year marked by social distancing, the physical and human component has increased exponentially in value. As far as possible, we will return to physical points of sale, where brands will seek to recover the more sensorial and tangible side of their product. At the same time, virtual events will emerge that increasingly mimic the face-to-face experience.

Empathy as a core value

Over the last few months we have seen how, despite everything, technology has not been enough to compensate for in-person interactions. However, brands that have listened and empathised with our problems, doing what they could to help us, have come out stronger. In the coming years, brands will become even more humanised and move away from the rigid brand manuals we know.

Has the pandemic been the last push brands needed to join the green revolution?

Posted on by Knom

A pause to review priorities.

The pandemic has forced us to stop and take stock of what is really important in our lives. And brands have not escaped this phenomenon: they have also had to take a break and reflect. The fashion sector, for example, has seen its business slow down just at the moment when relevant voices in the sector questioned the need to have such a demanding rotation and so many collections in a single year. Other brands are asking us not to buy on Black Friday, or urging us to reuse, even repair, what we already have in order to extend its useful life.

There is already a collective feeling that we need to rethink the way we consume. We need to make our way of life and our values consistent with each other. Brands that make it easy for us and align with our new priorities will come out stronger.