The retail outlet as part of brand building

The value of brands has been debated ad nauseam and we all now accept that, often, this is the only differentiating factor between two similar products.

But when a recent report by Baghunter pointed out that the value of a Hermes Birkin bag increases an average of 14.2 per cent per year, and grew by 500 per cent over a period of 35 years, this takes the brand discussion to a whole new level. After all, we are not talking about precious jewellery or watches, it is a handbag … Global companies have long recognised the need and they spend huge amounts on creating and building their brands. Often this is much more than the actual cost of the product, defining a product, as in the case of luxury fashion, or differentiating it, as in the case of a television or a smartphone, where products are quite similar.

An interesting metaphor I read for branding was that of a sandwich. On the top you have the brand story — the history and background and all the experiences of people with it, defining what the brand means and how it is perceived. At the bottom you have the brand values — the solid principles and standards that the brand represents and stands for.

In the middle are the brand features — the nitty-gritty that gives the customer the technical product attributes he needs to know. This sandwich put together defines the complete brand.

The huge investments being done on brand building through media, events, sponsorships, TV and online provide customers with the brand values and create the story. Today, more and more, social media is also being used to pitch in with the features and technical information to complete the picture.

However, even with the largest budgets, it is never possible to cover the entire market. And many brands in any case do not have global budgets to play with.

This is where the role of the retailer comes in. When the customer is in the store and viewing a product, it is the last opportunity to communicate the ‘brand’ before the purchase is actually made. Too often, however, associates end up only talking features (and sometimes if they are good, the benefits), missing out on offering the brand story and values.

The opportunity to complete the brand picture is thus lost. For larger brands, this needs to be reiterated at every opportunity, and for smaller or newer brands this is often the only chance it gets to be told.

And without clear branding, there is often no real differentiator to create that powerful reason for a customer to make it his or her choice.

For retailers too, branding creates the reason for customers to choose the store to make their purchases. The three levels of branding — brand story, values and features — are just as important here as they are for a product. However, there is also another extremely important factor and that is the shopping experience.

Even with clear communication of the brand story, values and features, the actual shopping experience must contribute to — and not create a dissonance — with the overall communication.

This is easier said than done.

Creating display standards and smooth operating procedures are part of the solution. It also means inculcating the retail team into delivering the experience. The requirements, of course, vary from concept to concept.

In a fast fashion shop, it means giving the staff an understanding of fashion trends, an ability to create style and colour sets and recommendations, and the ability to advise customers based on body types, trends and styles.

In the case of home furniture stores, the staff need to be able to explain how different styles or looks can come together, colours matched, how accessorisation can be done and lifestyles expressed.

In the case of a pharmacy, it calls for an understanding of the effects of different drugs and brand names, usage norms, vitamins and supplements, etc.

These are information and skills that are needed to make the buying process seamless, enjoyable and informed. And this needs to be delivered through a team that is enthusiastic and energetic, genuinely interested in serving the customer.

All this adds up to the brand experience that completes a retail brand. In a market that is slow and difficult, the importance of the retail brand becomes even more critical.

The customer has a wide choice of options from where she can make her purchase, and the first port of call will be to known and trusted stores.

The stores with the strongest retail brands will win.

— The writer is a senior executive in a leading retail company and these are his personal views.