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How traditional Australian brands can change business model during coronavirus

The Drum 15 Apr 2020 05:37
Brands need to employ a nimble test and learn approach to marketing and innovation in product development.

Traditional Australian brands should focus on four key areas, according to the IAB, to adapt to the direct brand model to address the rapidly changing market condition during the coronavirus pandemic (Covid-19).

Brands need to understand the opportunity of direct-to-consumer, including the value of using new channels and routes to market that offer first-party data relationships, return to a clear brand purpose and position the brand as a master of a category to demonstrate authority.

Finally, they need to employ a nimble test and learn approach to marketing and innovation in product development.

This is according to a report called Direct Brands Australia that was commissioned by IAB Australia to help the local industry understand the implications of the rise of direct brands.

The report also refuted the idea that direct brand shoppers are just millennials, with nearly two-thirds of those who have purchased from a direct brand aged over 40.

“Direct brands are redefining what it means to be a customer-centric, data-driven business. Even though this research was conducted pre-Covid-19, the findings are more important than ever for marketers,” said Gai Le Roy, the chief executive of IAB Australia.

The report also noted the convergence of commerce, data and content, popularised by direct brands and e-tailers, is also surfacing the opportunity for direct brands to potentially disrupt traditional media companies.

Read the full report here.

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IAB AustraliaDirect Brands AustraliaGai Le Roy
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