5 Branding Trends That Will Emerge This Year

The entire world came to a halt in 2020 and 2021 with the pandemic hitting us, resulting in the total lockdown of countries, widespread travel restrictions, and the closure of numerous businesses.

This also led to a drastic change in consumer behavior as having to stay at home significantly impacted their spending habits due to rising unemployment and the limited availability of essential and non-essential goods. The pandemic sent many sectors like hotels and airlines into survival mode, some of which lost up to 20% of their brand value. On the other hand, businesses in sectors like health, hygiene, e-commerce, OTT platforms, food delivery services, etc. have grown significantly.

Now, even as economies start to reopen, the fact remains that the pandemic has disrupted consumer behavior in such a way that it may never return to ‘normal’. Hence, if brands want to not just survive but thrive in the coming year, it’s imperative for them to relook at their strategies and adapt to the ‘new normal.

But how does that affect the branding direction? Let's explore what experts say about the branding trends that are expected to emerge in 2022:

1. Holding brands to higher standards

The past year has brought social issues to the forefront, with people voicing their opinions and taking strong stands more openly especially on various social media platforms. Consumers are now actively looking at the ‘social consciousness’ of brands and the values that they stand behind. In research conducted by McKinsey,

Consumers are now looking at brands to take strong stands on social issues and back them up with stronger actions. Brands that are socially conscious and responsible are likely to gain the trust of the consumer faster and consequently see a rise in their brand value.

Image Source: H&M

2. The growth of e-commerce brands

With physical stores closing and consumers trying to avoid crowded stores, e-commerce saw significant growth. Leading e-commerce giants anticipate a permanent shift in consumer behavior, moving toward online or omnichannel shopping platforms. However, brands that are transitioning into the e-commerce space for the first time should do so with due consideration to various fundamental aspects like pricing, packaging, delivery timelines etc.

3. Focus on building communities

The pandemic forced individuals to come together as a community and help each other out in difficult times. Brands should adapt their marketing strategies to this shift in the sensibilities of the consumers by taking a more grassroots approach to communication as well as by localizing the brand experience. Brands that focus on supporting and nurturing communities in times of crisis will not only stand out from their competitors but also gain customer loyalty and trust.

Image Source: Lululemon Athletica

4. Partnerships and collaborations

Forward-looking businesses recognize that successfully navigating 2022 and beyond will require new marketing strategies like brand partnerships and brand licensing that they may not have considered previously. For example, several brands are partnering with other like-minded brands to help those who are in need during these difficult times. Several brands are also venturing into brand licensing as a way to launch new product categories not just to overcome the economic downturn but also to amplify brand loyalty and trust among their consumers. However, to reap the benefits of brand licensing, brands must ensure that they choose their licensee partners thoughtfully and extend all support and guidance to them.

When done right, brand partnerships and brand licensing can prove to be a really strong arrow in any brand’s strategic arsenal.

5. Innovation is key

Many brands are leveraging technology and incorporating online business models to survive in this pandemic-hit economy, something they didn’t have to think about earlier. For example, museums and art galleries are now booking 360 virtual reality tours of their displays and shows.

The pandemic has led to a fundamental shift in consumer behavior, causing businesses to make continuous innovation a key strategy in order to adapt to the new normal in which working from home, online shopping, social and environmental consciousness, etc. have taken the centre stage.

Image Source: Anifa Mvuemba

The Covid-19 crisis brought the world economy to its knees and almost all businesses have had to struggle for their survival over the last two years. Now, as we enter 2022, it is critical for brands to rethink what they know and reconsider their branding and marketing strategies going ahead so as to stay relevant and cope with the changing consumer behavior.

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