1/ Brands are a substitute for incomplete information.
2/ Before the internet, information was asymmetric. On average, sellers had more information than buyers.
3/ When the seller has a lot more information than the buyer, the seller can rip you off if he/she wants. The seller had the advantage.
As a result, companies relied on the moat of incomplete information.
As a result, companies relied on the moat of incomplete information.
4/ By and large, the internet took us from a world of information asymmetry to a world of information parity.
5/ Now, buyers can gain the advantage.
Today, shoppers can go online research a product, and arrive at a car dealership familiar with all the models and associated costs.
Today, shoppers can go online research a product, and arrive at a car dealership familiar with all the models and associated costs.
6/ When this happens, buyers have the power. They can share their rate and review with the world on platforms like Yelp and Amazon.
Research shows that buyers are often 60 to 70% of the way through their decision process before they pick up the phone, or reach out to a company.
Research shows that buyers are often 60 to 70% of the way through their decision process before they pick up the phone, or reach out to a company.
7/ Soon, we’ll be able to look at a product with mixed reality glasses ask:
1. “Is this product cheaper on Amazon?”
2."How does the food at this restaurant taste?"
Ratings and reviews will appear automatically.
1. “Is this product cheaper on Amazon?”
2."How does the food at this restaurant taste?"
Ratings and reviews will appear automatically.
8/ So, what does this mean for the future of brands?
🤷🤷♂️
🤷🤷♂️
9/ Here's my thesis: Brands will struggle where there's information parity.
@profgalloway has observed that in a voice-first world where speed and convenience trump logos and packaging, brands will not matter.
@profgalloway has observed that in a voice-first world where speed and convenience trump logos and packaging, brands will not matter.
10/ Galloway calls CPG “the house that advertising built.” But now, big consumer brands, are struggling.
Among the top 100 consumer-packaged good (CPG) brands, 90 percent experienced a decline in market share in 2015.
Among the top 100 consumer-packaged good (CPG) brands, 90 percent experienced a decline in market share in 2015.
12/ Brands will exist on a spectrum: emotional vs. unemotional purchases.
On one end, you’ll have unemotional routine purchases: laundry detergent, cleaning supplies, basic clothing, etc.
That’s where I agree with @profgalloway.
On one end, you’ll have unemotional routine purchases: laundry detergent, cleaning supplies, basic clothing, etc.
That’s where I agree with @profgalloway.
13/ Amazon’s Echo strategy reflects this. Look at what they kinds of products they’re promoting — mundane ones. 
14/ With these unemotional purchases, trust increasingly comes from reviews and star ratings — not brand power.
We want to minimize downside, not maximize upside. To avoid badness rather than maximize perfection.
Unemotional purchases should be fast, easy and even automatic.
We want to minimize downside, not maximize upside. To avoid badness rather than maximize perfection.
Unemotional purchases should be fast, easy and even automatic.
15/ Emotional purchases exist at the other end of the spectrum.
These purchases are driven by our desire express ourselves and display individuality: our favorite winter coat, a coveted pair of shoes, personalized beauty products, etc.
These purchases are driven by our desire express ourselves and display individuality: our favorite winter coat, a coveted pair of shoes, personalized beauty products, etc.
16/ Remember… brands thrive where there’s incomplete information.
Among other things, brands inspire us, help us fit in, and comprise our identity.
Brands are a language of communication.
Among other things, brands inspire us, help us fit in, and comprise our identity.
Brands are a language of communication.
17/ Before globalization, our identity was shaped by our heritage, nationality, religion, and race.
But today, identities are constructed differently. Values, interests and personality matter more.
A brand is worth a thousand words.
But today, identities are constructed differently. Values, interests and personality matter more.
A brand is worth a thousand words.
18/ Brands are powerful because they allow consumers to express complex beliefs and values instantaneously.
As a result, intimate bonds between brands and consumers are inevitable.
As a result, intimate bonds between brands and consumers are inevitable.
19/ The modern world increasingly rewards niche businesses with high differentiation. It pays to be unique and different.
1. In the beauty sector, indie brands were up a staggering 43% in 2016.
2. In 2016, microbreweries and brew pubs drove 90% of craft beer growth.
1. In the beauty sector, indie brands were up a staggering 43% in 2016.
2. In 2016, microbreweries and brew pubs drove 90% of craft beer growth.
20/ Here's the key takeaway: brands exist on a spectrum.
Where there’s information parity, brands matter less.
Where there’s information asymmetry, brands matter more.
Pictured: @Zoella, @hint, @OffWht, and @bigballerbrand. Differentiated, personality-driven businesses.
Where there’s information parity, brands matter less.
Where there’s information asymmetry, brands matter more.
Pictured: @Zoella, @hint, @OffWht, and @bigballerbrand. Differentiated, personality-driven businesses.
Shoutout to @mikedariano and @mrsharma for conversations that inspired this thread.
Still working through these ideas and they will most definitely change. Feedback is appreciated!
✌
Still working through these ideas and they will most definitely change. Feedback is appreciated!
✌
