July 17, 2019
When we look at these two terms, we first need to separate them into short term vs long term strategies. These are two different approaches for building your business depending on the nature of your business, although they still share some similarities. Let’s explore these two strategies.
Brand creation is a complex process that involves a multifaceted approach to creating a unique image of your company in the eyes of consumers. In other words, it is the key image that defines your company; and in certain types of markets brands bring more value to sales. Some of the most valuable brands in the world include Apple, Google, Zara, Chanel, Coca Cola, Nike, Toyota, BMW, etc (found in most valuable brands of 2018). These also happen to be some of the biggest companies in the world, and it’s no coincidence.
With statistics to back up the importance of brand creation, a study by Nielsen’s Global Product Innovation Survey found that 59% of global respondents prefer to buy new products from brands familiar to them. In addition, 21% of respondents have said they purchase new products based entirely on the brand.
Brands can inspire confidence and signify quality products, but brand creation does not necessarily apply to every business. Some of the questions business owners should ask themselves are:
Who wouldn’t want to build a good brand? For many full fledged businesses, building a brand is one of the most important aspects of the business. It is by far the preferred way to go. Brand creation is therefore more appropriate path to take rather than maximizing short term sales for most businesses.
But if you consider the following situations:
Situation 1: Your business is centered around reselling a variety of products manufactured in developing countries such as China, where you don’t own the brands for these products. Your primary concern may be selling as many of these products as possible while you have the distribution rights to that product.
Situation 2: Alternatively consider you own a drop shipping business on the side that is used to supplement your primary occupation; you have limited time and resources, but you want to achieve results as quickly as possible. You would not necessarily go about spending lots time to building a brand.
There are countless situations and scenarios where it is better to walk away with short term profit and that depends uniquely on the business and the business owner. You must decide for yourself. Certain circumstances may tip the scales in favor of maximizing sales over any sort of long term brand creation.
We at UI Avenue are a group of designers, developers, and marketers making it simple to use apps on the Shopify platform. As a small business, our core value is to help other small businesses develop the best strategy moving forward to meet their needs.
In addition as we develop our different apps/tools to complement the Shopify Platform, we will provide a strategy on how to best use the app whether to build your brand or maximize short term . Checkout our Brand Creation: Popup App These strategy/articles should also be useful for those that aren’t on Shopify. However, if you are a store owner on Shopify, go ahead and download our app.