In Brands We Trust--Or Not
There seem to be two types of brands these days: ones that continue to deliver on their promises despite the turbulent economy and pricing pressures; and ones that use their brand equity to sell products that aren't nearly the level of quality that the brand originally promised and delivered. That group of brands is likely boosting their margins, but how long can the fun last before consumers catch on and lose trust.
Quick example in retail: I've purchased my share Calvin Klein products over the years; mostly clothing. They've always been good quality. So when I was shopping for sheets and saw a set by Calvin Klein that I liked, I trusted that the quality would be as good--especially considering the how pricey the set was. Turns out the sheets were anything but soft and the getting the fitted sheet on the (standard size) mattress was like stuffing 10 pounds of sausage into a seven-pound bag. Fast-forward to a year later when I couldn't stand to deal with those sheets anymore. I headed to Ikea and found a set of its sheets that I liked even better at about a third the price. That set was deliciously soft and fit properly. The experience made me think twice before buying anything with the Calvin Klein brand. I have since purchased a few things, but very carefully.
It seems that there's a growing imbalance between brands' focus on quality versus margins. One retail insider recently told me, "When a brand stops answering to consumer expectations and starts answering to Wall Street, or private investors, you can pretty much count on a decline in innovation, style, and quality."
Then which brands do you trust? There are many trustable brands. But there are also plenty that are sacrificing quality to meet the demands of shareholders (profitability), retailers (margins), and even some consumers (price). So buyer beware.
It's no wonder the tagline for clothing retailer Syms is, "An educated consumer is our best customer."
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