Branding differentiates you from your competitors.
Business A and Business B both sell clothes. Their products are similar, and are in the same price range. Both have Instagram accounts. Unfortunately, they doesn't have a compelling or memorable story that they could market. Their branding may be "pretty", but there is no added value for the customers. No angle.
You can't have great branding without an angle.
(Side note: Isn't it interesting how Malaysians basically took over Instagram and made it an e-commerce site of sorts?)
Lady X, who is a potential customer, follows both businesses on Instagram. She hasn't purchased anything from either of them yet, but decides to do so in a few days. When the time comes, she has a hard time deciding between the two. So she chooses based on price. The difference was only RM5-RM10.
When customers choose based on price, most businesses will suffer. There will always be someone who will offer better prices than you do. If you have to lower prices again and again, your business will not move forward.
People will associate your business with "cheap", and you know what "cheap" implies? Low quality. Inferior status.
There's a reason why Chanel handbags and Louboutin red-soled heels are called "branded products". It's because they took the time to cultivate their brand. Not only that, they made the story consistent across all platforms.
The quilted texture of the Chanel handbags were similar to that of jockey jackets, because Coco Chanel was a big fan of horse racings. The red soles on Louboutin heels signify a woman feeling sexy and confident. Did you know that their red soles are legally trademarked?
The basic key elements of their marketing strategy are luxury and craftsmanship, but they spiced it up a little more by adding these little details to their brands.
Little by little, these details add up. They present a cohesive and memorable experience for their customers.
So regardless of their extremely expensive price tags, people pine and long for them. It may seem impossible that our products will ever reach their price range, but it's not. You can charge premium prices for your products, if you:
- Focus on quality.
- Market an angle that benefits your customers.
Being just another business from the cookie cutter may pay the bills, but it won't give you the satisfaction of cultivating a business that transcends time and location.