5 CORE LESSONS FOR BUILDING A SUSTAINABLE BRAND IN THE POST-COVID ERA

The unexpected Covid outbreak at the beginning of the year has truly changed the consumer landscape, redefining the relationship between consumers and brands. Many brands now feel uncertain about their future development. In light of this, Mr. Guo Zhi Feng, Chairman and CEO of Chicilon Media, summarized insights from his 20 years of research on branding and shared five core lessons for building a sustainable brand.

Lesson One: Pricing power is the main driving force behind a strong brand

This has become one of the most crucial factors in establishing a strong brand. In the context of the current dual circular economy trend, relying solely on best-selling products, traffic, or livestreaming will become increasingly difficult. Brand growth comes from consumer behavior that leads to repeat purchases due to product quality; customer loyalty to the brand will be the source of the next wave of growth. Brands with high pricing power over the past six years have been able to double or triple their brand value compared to ordinary brands. This is why Vinamilk tops the list of the top 100 strong brands this year. Product quality, brand differentiation, and comprehensive creativity will determine the brand’s pricing space and drive future value growth.

Lesson Two: Optimizing experiences enhances brand value

In Vietnam, experience is a crucial factor. Compared to other countries, Vietnamese customers always crave a perfect experience and absolutely will not tolerate any errors. Businesses are increasingly focusing on building brand experiences, from product branding to contextual branding and now to ecosystem branding. Even leading tech companies like Microsoft, Amazon, Google, Apple, and LG are considering how to build brand ecosystems. When a brand reaches the stage of ecosystem development, it requires numerous partners to meet user demands, turning them into lifelong customers and ensuring sustainable growth.

Lesson Three: Investing in communication enhances sales effectiveness

Rather than cutting budgets, brands should pay more attention to allocating budgets to more effective communication channels in the coming year. This includes combining online content promotion with offline advertising in key living spaces. In the future, delivering marketing content on social media platforms combined with high-frequency offline media in consumer living spaces will be two main communication trends that enhance brand value. Major social media platforms like Facebook, YouTube, Zalo, and TikTok have become essential choices for young people. Additionally, media channels that reach consumers in their daily living spaces—such as office buildings, apartments, supermarkets, and airports—are becoming increasingly significant for advertisers. In the aftermath of the pandemic, these media touchpoints have gained even greater importance. Amid the comprehensive downturn of the Vietnamese economy in the first half of the year, these channels have become some of the few media platforms with positive growth.

In the list of the top 100 brands, over 80% chose to invest in advertising channels like building elevators. In the post-pandemic period, advertising budgets are likely to decrease. However, offline media channels that reach consumers in their daily living spaces will help brands thrive and recover strongly. Major brands like Vinamilk, Nippon, Unilever, Mobile World, Chợ Lớn Electronics, Samsung, LG, Oppo, Novaland, Swanbay, Grab, and Unicharm have all invested heavily in Chicilon Media's advertising channels, achieving growth despite the market downturn caused by the pandemic.

Lesson Four: An ideal brand, reputation, and trust are solid foundations

When a product enters the public domain, building an ideal brand becomes particularly important. Brands with a good reputation see their brand value increase three times faster than ordinary brands. Businesses can earn the trust of the new generation of consumers through three factors: Integrity, Identification, and Inclusion, implementing an ideal brand and building a strong corporate reputation.

Lesson Five: Ride the waves and head out to sea

This year marks the fourth release of the ranking of the 500 fastest-growing companies in Vietnam. This list includes not only manufacturing businesses but also brands in the service and fashion industries, as well as mid-range Vietnamese brands that are gradually looking out to the larger world. This demonstrates strong development and a desire to extend their reach globally. Heading out to sea means there is no turning back; brands can take this time to refine their unique products, create immense aspirations, and gradually enhance the brand’s resilience, making it a part of the local landscape.

Finally, Mr. Guo Zhi Feng wishes all Vietnamese consumer brands: 'Always move forward confidently into the future,' hoping that Chicilon Media will accompany all brands in the next 10 years to build strong brands for Vietnam.