Torsten Schäfer, Europe Managing Director at Pattern, discusses managing your brand effectively in a digital age, and in turn building consumer trust
In today’s digitally connected world, businesses have more opportunities than ever to expand and execute a global sales strategy that leverages the reach and functionalities of different online platforms. In fact, Gov.UK research found that 48% of retail businesses sell their products across multiple online platforms including Amazon, eBay and Etsy.
While this is great for retailers looking to reach wider audiences, the expanse of digital channels available makes it much harder to manage how a brand is represented. Maintaining a consistent image, reputation, and commercial strategy across all sales channels is crucial for market positioning and customer trust. So, without proper care, profitability can ultimately be compromised.
With the peak of the Christmas shopping season approaching, brand management must be considered to consistently portray image and values to both existing and potential customers. This is achieved through effective brand control.
What is brand control?
Brand control is a discipline which ensures that a business’s products are sold exclusively through authorised channels. It involves implementing a holistic and legally compliant strategy that aligns with both the brand’s image and broader business objectives.
In essence, brand control considers a company’s ability to manage how its products are marketed, sold and represented across various platforms. This includes aspects like advertising, packaging and the overall customer experience.
The rise of digital marketplaces like Amazon and eBay have made maintaining consistency increasingly challenging over the past twenty years. The recent prevalence of local marketplaces such as Alibaba in China, as well as niche platforms like Vinted and Depop, has further exacerbated the issue.
The risks of overlooking brand control
With more retail platforms available, unauthorised sellers listing products in ways that don’t comply with a brand’s standards have more opportunities than ever. This can negatively impact the brand in several ways, especially after heavily investing in building and protecting a strong identity.
Unsanctioned third-party sellers pose a risk of misrepresenting a brand through poorly written product descriptions or inaccurate claims. Their customer service might also fall short of the original brand’s rigorous standards and products might be acquired through dubious, low-quality channels. Failing to manage this can result in losing market share to competitors, as rogue sellers may overshadow committed retailers which adhere to brand standards.
Competition from unauthorised sellers also brings inventory management challenges, as they can win the Amazon Buy Box with unreliable products, impacting legitimate sales and making accurate forecasting difficult.
Incorporating a selective distribution strategy
Businesses need to focus on long-term strategies that incorporate both operational improvements and legal measures to maintain brand control.
An effective method to achieve this is selective distribution. This strategy is where companies cherry-pick which trusted retailers can sell their products based on who will uphold brand standards. Working with an accelerator partner which uses technology and insights to optimise everything from digital marketing to logistics and fulfilment across various platforms can be invaluable when implementing this approach.
Fortunately, there are legal frameworks which support selective distribution without violating competition laws. The Vertical Block Exemption Regulation (VBER) in the EU and the Vertical Agreements Block Exemption Order (VABEO) in the UK provide flexibility to decide who, where and how products are sold on marketplaces when a company’s market share in a specific product category is below 30%.
This legal foundation gives businesses the power to take control over how their brand is represented by limiting sellers to those who accurately represent their products. It is essential to incorporate and define clear marketplace restrictions in terms to ensure they can be enforced against any sellers who may violate them by listing non-compliant products.
Leveraging data analytics and educational campaigns
Technology plays a crucial role in harnessing lasting brand control. Data analytics tools can be used to gain critical insights into distribution networks and inventory levels while helping to identify potential unauthorised channels.
Alongside this, educational campaigns can offer customers guidance on how they can tell the difference between legitimate and unauthorised retail channels. This will help consumers make more informed purchasing decisions and strengthen trust in a brand’s integrity.
Embracing brand control this Christmas
With the Christmas shopping season in full swing, brand control must be prioritised. By doing this, you will protect your brand’s reputation and profitability, in turn building consumer trust. Ultimately, your brand has a better chance of thriving in an increasingly competitive landscape. Embracing brand control and leveraging tools such as legislative protection, data insights and consumer education will ensure the long-term growth and success of your businesses in a swiftly transforming marketplace.
