Reinvention is the Key to Sustaining a Brand
The tragedy of the day is Sears. They are nose-diving with no end in sight. After comparable store sales falling off between 16-17% in 2017, no one can see a way to reverse this trend. Wall Street ‘s collective view is that they will be lucky to survive 2018. They should have focused on reinvention all along.
What makes this so sad is they were not able to build upon the venerable brand equity established over generations. For much of the last century, Sears was the source of quality and durability for many things. It was literally where America went to shop. Most appliances that our grandparents counted on came from Sears. Their catalog was where Americans bought what they needed. Quality was assured. So powerful was the brand that it could carry the product offering of the “mail order bride”, then used by homesteaders who could look at a Sears and Roebuck or Montgomery Ward catalog and order a wife delivered to his home just as easily as an appliance. (The Zoosk, Match.com and eharmony of the time). That’s how embedded the brand was in our culture.
But things changed, and successive leadership never focused on reinvention to keep the brand relevant.
To prevent the erosion of a strong brand, leaders need to constantly evaluate where they are and where markets are headed. Of the powerful brands of the mid-to-late 1900’s, what happened to Kodak, Howard Johnson’s, Polaroid, Borders, and Blockbuster? Imagine the extraordinary brand equity each had built. At In the end, each brand did not manage their business into a changing future. Kodak didn’t believe in the digital revolution. Howard Johnson’s yielded being America’s rest stop to fast food chains, etc.
The big message here is having the forethought and will to acknowledge change can help a company navigate the future. It is about embracing disruption. Great leaders must continually make this a primary responsibility. Particularly with the ever-increasing acceleration of change, the mandate is here, right now.
One significant consulting firm that specializes helping companies focus on the future in a rigorous and strategic manner is Innosight. They have developed formalized processes to look at the future and manage to it. We have seen it in action and it is impressive.
Net… don’t put your head in the sand. Embrace that change will happen, identify what the future will look like and have a strategy to navigate there. If you do this well, you won’t become a Sears.