Today, technology and fashion brands have become more prominent than the brands most of us grew up with or still use every day – how has this become the case? THOMAS OOSTHUIZEN, Global Consulting Director at Acceleration, delves into the theory behind this.
We know strong and differentiated brands drive revenue, profit margin and shareholder value growth. Apple, Google and Facebook are three recent examples of this.
Yet, overall, brands have declined in stature over the years. At least many brands are under threat. Just consider how traditional brands are now lagging in the annual BrandZ (WPP) survey of top global brands. Today, technology and fashion brands have become more prominent than the brands most of us grew up with or still use every day.
There are several reasons for this:
Low growth in many industries which led to the consolidation and rationalisation of brands. Brand efficiencies across manufacturing, logistics, technology and marketing have become key drivers for success. This means differentiation and consumer value proposition discussions now often take the back seat.
The commoditisation of many industries and brands. This is evident in the decline of margins in many industries and an increase in the number of price sensitive consumers. Consumers knowing they can get a “good deal” if they shop around online, which reduces the impact of brands. Also, because social media make brand comparisons between friends easy, it further reduces the impact of brands.
The result is that consumers are no longer that loyal to brands. Even within emerging markets – once seen as (new) positive momentum for brand stature – the consumers go through a fast learning curve enabled by technology.
The empowerment of the consumer – and the availability of information on brands as well as endorsements (or criticism) by other consumers or trusted independent advisors. This undermines simplistic and “un-true”/ “half-true” statements by brands, further eroding differentiation. Outside of brands that are very emotional, like watches and fashion, it is not easy for brands to justify margins if they are the same as other brands.
Perceptually, a decline in brand differentiation in many industries, notably in financial services, telecommunications, retailers, media, ISP’s, automotive, energy, utilities and airlines. Whilst there are exceptions, the vast majority are perceived as “so-so”. Consumer research has seen this decline over a period of years: consumers view these brands as more and more similar.
Parity of product and service quality. Most brands are simply similar in how they deliver to consumers. This may partly be as a result the notion of benchmarking – pursued by most corporates at some point – which essentially made the business foundation of brands the same within the same product or service category. The same technologies being available to all have also played a role in this, i.e. telecommunications companies.
Yet, one of the key issues that face brands – it has started very subtly but is about to accelerate, is the issue of dis-intermediation. Largely enabled by digital technology.
In more and more instances, the interface between consumers and brands has declined to a level where it will be hard to regain the high ground.
The most obvious place for this is comparative websites that compare offers from various brands to select the one most suitable for a given consumer. This is rife in banks, insurance, travel, consumer goods, etc.
Another example, the bank account and the bank that is debited at the end of an Amazon transaction, is less evident than when we physically took our cheque books out to pay accounts, do online banking or use a credit card in a store. We may not even remember what account is linked to what transaction anymore.
Similarly, the telecommunications service provider is far less salient when I use Facebook, LinkedIn, WhatsApp, Messenger, iTunes and any one of a given number of brand applications. Or when I use an independent retailer to top-up airtime. Whereas with voice and sms the service provider was clear, it is no longer as clear in the sheer number of hours spent on a device doing other things. This is until such time as the brand does not deliver (bad call quality, slow data speeds, coverage issues) – and then the trigger is negative.
Even in entertainment media and content per se, parity has started. We will be watching a program not knowing whether it was produced; aired or streamed through Sky, the BBC, Amazon Prime or Netflix.
The airline I may eventually use when booking through Xpedia; the hotel through Booking.com; the brand of fridge I buy through Amazon.com, even the backpack or shirt I buy online.
We know that new brands that offer simple, direct solutions (Uber, Airbnb) are – contextualising the competitive space for consumers. Hence in salience, they define different solutions amongst new groups of consumers. This may mean for younger consumers, some older brands will never take-on the significance they once had. To change this will require hard work by brands. Some industries – as a result – are under enormous threat, notably telecommunications, retailers and banks.
Yet, there is hope!
Simply considering the recent launch of the new Tesla smaller and cheaper electric car, differentiation still works if it is substantiated and credible. Yet, there is a window within which a brand needs to either redefine itself or create a new brand that will cannibalise it.
Bottom-line, don’t wait too long! Once a brand decline starts to accelerate beyond a certain level, it takes serious executive time and resources to correct – and the outcome is not guaranteed
How to take on IoT
The Internet of Things (IoT) is coming, whether you like it or not and organisations today will look to platforms and services that help them manage and analyse the streams of data coming from connected devices, says RONALD RAVEL, Director B2B South Africa, Toshiba South Africa.
Today, we are witnessing an explosion in IoT deployments and solutions and are moving towards a world where almost everything you can imagine will be connected. While this opens the door to many possibilities it also comes with its own challenges such as privacy and security.
The Internet has become an integral part of everyday life; it has been a free for all on a daily basis. IoT is a difficult concept for many people to wrap their minds around. Essentially, nearly every business will be affected.
Managing vast quantities of data across increasingly mobile workforces can be tremendously beneficial if done well, but equally can be cumbersome and ineffective if not managed properly. This is why technologies such as mobile edge computing are becoming increasingly popular, helping to increase the prevalence of secure mobile working and data management in the age of IoT.
The evolution of IoT, despite rapid and ongoing technological innovation, is still very much in its fledgling stages. Its potential, though, is demonstrated by the fact that by 2020, Bain anticipates a significant shift in uptake, with roughly 80 per cent of adoptions at that point to have progressed to the stage of either ‘proof of concept’ or extensive implementation. This means that technological innovation in IoT for the enterprise is progressing at a similarly fast rate with many of these solutions being developed with utilities, engineering, manufacturing and logistics companies in mind.
Processing at the edge
For IoT to be adopted at the rate predicted, technology which does not overwhelm current or even legacy systems must be implemented. Mobile edge computing solves this. Such solutions offer processing power at the edge of the network, helping firms with a high proportion of mobile workers to reduce operational strain and latency by processing the most critical data at the edge and close to its originating source. Relevant data can then be sent to the cloud for observation and analysis, thereby reducing the waves of ‘data garbage’ which has to be processed by cloud services.
A logistics manager can feasibly monitor and analyse the efficiency of warehouse operations, for example, with important data calculations carried out in real-time, on location, and key data findings then sent to the cloud for centrally-located data scientists to analyse.
The work of wearables
The potential of IoT means it not only has the scope to change the way people work, but also where they work. While widespread mobile working is a relatively new trend in industries such as banking and professional services, for CIOs in sectors where working on the move is inherent – such as logistics and field maintenance – mobility is high on the agenda.
Wearables – and specifically smart glasses – have started to gain traction within the business world. With mobile edge computing solutions acting as the gateway, smart glasses such as Toshiba’s assisted reality AR 100 viewer solution have been designed to benefit frontline and field-based workers in industries such as utilities, manufacturing and logistics. In the renewable energy sector, for example, a wind turbine engineer conducting repairs may use assisted reality smart glasses to call up the schematics of the turbine to enable a hands-free view of service procedures. This means that when a fault becomes a barrier to repair, the engineer is able to use collaboration software to call for assistance from a remote expert and have additional information sent through, thereby saving time and money by eradicating the need for extra personnel to be sent to the site.
The time is ripe for organisations to look to exploit the age of IoT to improve the productivity and safety of their workers, as well as the end service delivered to customers. In fact, Toshiba’s recent ‘Maximising Mobility’ report found that 49 per cent of organisations believe their sector can benefit from the hands-free functionality of smart glasses, while 47 per cent expect them to deliver improved mobile working and 41 per cent foresee better collaboration and information sharing. Embracing IoT technologies such as mobile edge computing and wearable solutions will be an essential step for many organisations within these verticals as they look to stay on top of 21st century working challenges.
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.