Value-Add Not Value-Out
This is a moment of extreme uncertainty and disruption. While it has rolled up suddenly with dramatic intensity, resistance to the prevailing structure of globalization and integrated, cross-border commerce and culture has been simmering for years. Left-wing critiques of cultural imperialism date back decades; right-wing populist movements have been gaining support steadily since the financial crisis. Both advocate an upending of the global order.
Tariff threats have layered on even more uncertainty to a marketplace already rocked by inflation, COVID, climate, and war. American brands are particularly in the spotlight, and not favorably.
Brands have been ensconced in a self-sustaining, self-reinforcing network of supply chains, digital media, and retail consolidation that has been largely removed from politics and division, other than channeling social causes into image and reputation. But now brands are in the mix, fighting to sustain equity, topline and share amid volatility and turmoil.
New Kantar research finds anti-American sentiment spiking due to tariffs. Yet, ongoing Kantar BrandZ tracking also finds that American brands are stronger and more valuable than ever. Whether this existing equity is sufficient insulation from risk is uncertain. But the legacy of American brands remains a touchstone for future brand-building everywhere.
Building and growing brands is still the hardest thing to do. Growth is the exception, not the rule. Brands must continue to add value, not succumb to the moment and take value out. Succeeding during disruption requires leaning in, not away, thereby giving consumers more reasons to buy, not less.
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