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PETALING JAYA: As the new normal takes its shape, brand owners need to reinvent their business models to stay afloat or face the risk of going bust.
With businesses, including small and medium enterprises (SMEs), facing the brunt of the Covid-19 and leading to their demise, there are brands which have survived and thrived.
These are the ones which have reinvented and adapted to the new normal to meet their customers’ needs and targets.
They are also purpose-driven brands which have made a meaningful difference to the lives of the people.
Branding Association of Malaysia president Datuk Eric Chong, who equates business to a chess game, said there are some truly competitive Malaysian brands that have demonstrated their resilience and market worthiness during the pandemic. They have continued to grow despite severe market challenges, he added.
The only way he said for brands to achieve growth is to reinvent themselves and their business models. This would allow them to adapt to the current environment, and evolve to become “species” capable of surviving despite the relative lack of resources.
“If a retail business can’t sell its products via the traditional physical approach, go online. And if diners can’t dine inside, deliver it to their homes. If a tuition centre can’t teach students face-to-face, meet them ‘face-to-face’ on screen.
“The market and consumer behaviour changes brought about by Covid-19 are likely to be permanent for the most parts, as the world is unlikely to be returning to the ‘good old days’. If a brand owner isn’t able or willing to change, the world will pass him by.
“Business is like a chess game. You must play every move right. Failing to do so, you will be checkmated. The market is brutal and the fittest will survive, ” Chong noted.
While there are threats, he said there are also opportunities amid the pandemic. The bigger the threats, the bigger would be the opportunities, he said.
It’s most important that brand owners steer their way through this carefully and ensure survival. Don’t wait for the pandemic to be over passively – play chess with the market aggressively, ” he added.
Publicis Groupe and Leo Burnett Malaysia CEO Tan Kien Eng said in an era of scepticism, fear and uncertainty, brands with a clear purpose and thoughtful in their marketing would continue to win the trust of customers.
During difficult times, he said brands are not just expected to deliver on their promise to provide greater value but also to go above and beyond to achieve a greater good.
“Customers expect brands to be empathetic towards the challenges they are facing and make a positive contribution to ease their life and of the society at large, ” he said.
Tan noted that a recent industry report stated that brands which stop advertising take twice as long to get back to full health after being entirely off the air. So, brands that are out of sight, would remain out of mind when the economy starts to improve.
In essence, he said brands need to be agile and invest in keeping their customers. Brands need to display a higher level of empathy and customise their product, services, value exchange and payment terms to accommodate what their customers are facing in these challenging times to spur consumption, he said.
Tan said brands must continue advertising in a relevant manner and maintain their presence to stay relevant and maintain their share of voice.
Brands need to evolve for their survival, according to the Association of Accredited Advertising Agents Malaysia (4As) president Andrew Lee.
He said merely by going into e-commerce and marketing in the digital sphere like everyone else would not guarantee their survival.
Brands need to re-examine and evolve their brand DNA to make a meaningful difference to the lives of the people and the community, he said.
Lee said: “People buy purpose-driven brands whose purpose can make a worthwhile difference in their lives. Brands that do not have a strong brand purpose and have not made any meaningful difference in people’s lives will eventually be extinct.
“What is the reason for the brand’s existence? This is the question business owners must ask because only companies and brands that make a meaningful difference in our lives will survive.”
Giving his perspective on brands revival in the wake of the pandemic, International Advertising Association (IAA) Malaysia president John Chacko said it is in difficult times that consumers take notice of “who are the brands that stand by me” during such turmoil.
Inadvertently, he added that such brands secure customer confidence as the economy recovers and in the long term.
He said brands which stand true in both good and bad times earn the trust of both consumers and the industry. This principle is true for both multinationals (MNCs) and local small and medium enterprises (SMEs), he noted.
“Brand passion is crucial in driving brand success. Perceptive brand owners will pay particular attention to these passions and use them to make wise decisions to build brand pride and passion when developing strategic campaigns.
“As we experience an increasingly online economy, brands matter more than ever towards helping consumers in making informed choices. When the consumer wallet is under pressure like never before, they tend to gravitate towards brands they trust.
“Hence, brand owners need to strategise and internalise ways to instil trust towards their brand; from the e-commerce platform to the ‘look and feel’ of their advertising and promotional content, as well as their message and tone and respect their data privacy, ” Chacko added.
He also said that advertising and promotions budgets are usually the first to be slashed during challenging economic times.
However, he said contrary to conventional short-term “band-aid” measures like these, brands that have an enhanced presence during a crisis such as a pandemic would be the ones to stand out post-recovery, making their business thrive.
Source: https://www.thestar.com.my/business/business-news/2020/12/07/adapt-or-perish