Global 2015: 10 YEAR RESULTS | 5. INNOVATION DRIVES BRAND VALUE
Trend-setting brands viewed as Different
Consumers see innovative brands – brands that set trends – as Different and as leaders. These perceptions pay significant dividends in brand value growth. Over the past 10 years, brands that scored highest in the BrandZTM trend-setting metric increased an average of 161 percent in Brand Value. Brands that scored lowest increased only 13 percent.
When consumers score a brand high in trend-setting, they typically view it as creative, different, desirable, adventurous
or assertive. The trendsetters include many technology brands, but not exclusively. Nike, UPS and PayPal score high in the BrandZTM Trendsetter Index, for example.
Trend-setting brands share in common the determination to understand the needs of consumers, the ability to identify the gaps where needs are going unmet, and the willingness to take the creative leaps and risks required to close those gaps with new products and services.
Trend-setting brands win in value
Over the past 10 years, brands that scored highest in the BrandZTM trend-setting metric increased an average of 161 percent in Brand Value.
Brands need to set trends to win. They need to become leaders through innovation. Especially as categories become more competitive, being a trendsetter means being seen as different, which is increasingly difficult but critical for Brand Value growth. The difference needs to be noticeable, relevant to the customer, genuine for the brand and matched with a big creative idea. Brands need to be forward- looking and can deliver innovative product and experiences beyond consumers’ expectation at more acceptable prices. Even without breakthrough products, brands still need to make sure their communications look and feel innovative.