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BRAZIL
THOUGHT LEADERSHIP
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015
CRISIS OR
OPPORTUNITY?
Ancient Chinese wisdom shows that the words “opportunity” and “crisis”
are complementary concepts, or two sides of the same coin. In the brand
scenario, where major changes take place, this duality represents a
critical moment that requires short-term, effective action without losing
its focus on relationship-building strategy and the brand background.
AURORA YASUDA
Knowledge Management
Millward Brown, Brazil
Aurora.Yasuda@millwardbrown.com
After two decades of economic
stability, the 2015 financial crisis,
combined with the disruptive scenario
of the local political environment, puts
brands at a crossroads never before
experienced. More than ever, flexibility,
creativity, optimism, resilience and
many other adjectives attributed to
Brazilians are the tools that brands
will need too.
Facing new levels of unemployment
and debt, the key words have become
‘conscious consumption’ i.e. buying what
one can currently afford and meeting the
basic needs. This is a significant change
in Brazilians’ buying patterns. A plentiful
table has always meant wealth, power
and happiness.
The most important thing is to
understand consumer needs in this
situation and offer alternatives that can
maintain the loyalty ties that brands
have been building over time. In the
categories without actual differentiation
between brands, it becomes an
interesting trade-off for cheaper brands
and a choice of promotions and sale.
It’s worth nothing that learnings
and historical monitoring of brand
performance by BrandZ show that
promotional and pricing strategies can
undermine brand value, despite being
effective at returning a more immediate
result. And it shows that strong
brands, after a critical situation, more
quickly bounce back to previous levels
as consumers return to their earlier
patterns of consumption and purchase.
ALL TOGETHER NOW
Another seismic shift is being created by
the sharing economy, which emerges as
a great opportunity. ”Sharing” is the new
trend that requires a breaking away from
the traditional business models.
In the sharing economy there is no capital
ownership nor is it subject to government
regulation. Examples of shared
businesses that have challenged the
status quo are AIRBNB and UBER, in the
accommodation and urban transportation
(taxis) businesses respectively.
In these two examples, despite
movements against them, the trend
appears to be permanent. AIRBNB
has even been nominated as a
recognized accommodation source and
recommended for the 2016 Olympic
Games in Rio de Janeiro.
Shared home offices emerge; food items
and cleaning products are collectively
purchased by condominiums, buildings,
family and friends. Sharing is the new
buzzword: share talents in cooking, arts,
crafts and also in professional projects.
Changing the mindset has created new
businesses opportunities.
Will the brands that participate in
the sharing economy be the strongest
brands in the future, following in Google’s
and Facebook’s footsteps? How about
conscious consumption? How can brands
include in their scope and in their offering
something that plays to this perspective?
The 2015 economic and political situation
bring innovation opportunities for brands.
The key is to find a way to both be part of
the sharing economy and meet the need
for conscious consumption without losing
sight of what the brand stands for.
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