Time to reboot

How an economic slowdown can be a branding opportunity for companies

With the general dampening of economic mood and sentiment, most businesses are speculating if current slowdown will remain or is it just a cyclical phase. While high-value sectors such as housing, automobiles and electronics are facing the heat, everyday household products, too are witnessing a fall in demand. The question is whether in these times, it would be right to discuss about spending money on non-revenue generating activities such as branding? 

Brand building is perceived to be an expensive and unnecessary activity that might easily get shelved in lieu of current situation. However, in a longer run, this may end up hurting brand’s foundation. Brand building is all about long-term thinking and a slowdown probably is the right time to think through your brand. Here’s a golden opportunity for you to look at your brand and re-evaluate what it means to consumers.

Here’s a quick roundup of all that you can do to utilise the current slowdown: 

Spend time to really know your consumer

Now’s the time to know your consumer up, close and personal. Invest time to understand consumers psyche. During an economic slowdown, it would be interesting to study how consumers reallocate their spending across categories. Take buying a home for instance. Most consumers are cautious about it right now. It would be useful to study consumer sentiments as to what deferring a purchase of this nature really means to them. Understanding consumer behaviour during a slowdown, is a great way to know how your product category and brand, positions itself in the life of consumer. 

Re-evaluate your value proposition

At a time when retailers are experiencing a general slowdown, Amazon is riding a high wave with spurt in its business. Amazon is known to have always worked “backwards” starting with its customer. Excelling in its customer service, it has always offered services that goes beyond what other players are offering. 

Spending time evaluating the pains that consumers go through and the gains you can offer to them could help you build a recession-proof business. 

Revisit brand purpose and build internal belief

While consumer sentiment is in gloom, employees too are insecure about their future. Here’s a chance to align your team with your brand purpose. Build internal belief, use motivational branding tools to give your stakeholders a reason to show up at work each morning with enthusiasm.

Maybe wisely but do spend on marketing

Most marketing expen-ses are allocated as a percentage of future business, which means that when business is down, that figure will automatically come down. However, cutting down on marketing will lead to a cyclical downturn in future especially when economy goes an upswing again. Remember, consumers buy brands that are familiar to them. Those they have seen and can recall. While expenses may be cut, do not compromise on being visible even during a slowdown.

The biggest barrier to action during a slowdown is your internal team’s mindset. There will be many who don’t believe in branding. Convincing your peers that the brand you are building is for long term, which will pay rich dividends in future is required right now. Consumers, investors and employees alike would want to believe in a brand that stands through the test of time.