Retail Brands

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In Apparel, The Brand Makes a Comeback With words like "value" and "50% off dominating" so much of apparel marketing in the last two years, there's refreshing news from Brand Keys 10th Annual Fashion Index: Brands, topped by companies like Ralph Lauren, Armani and Banana Republic, matter more to consumers than they have since the 1960s.

The importance of a brand of an item of clothing jumped 14% in the survey, with 28% now saying that brands are "more" or "much more" important to them. "That's a record high," Robert Passikoff, founder and president, Brand Keys, told Marketing Daily. It marks the third year brands gained in clout in the survey, reversing a seven-year trend into a brands-matter-less mindset. Five years ago, fewer than 3% thought brands and logo were more important.

The brands that zoomed to the top of the list -- unaided-- are somewhat surprising. For women, Ralph Lauren comes in at No. 1, followed by a "favorite sports team," Armani, Chanel, Versace, Donna Karan, Burberry, Banana Republic, Dolce & Gabbana, Levi's and J. Crew. For men, "favorite sports team" takes top honors, followed by Nike, Ralph Lauren, Polo, Brooks Brothers, Armani, Levi's, Tommy Hilfiger, J. Crew and Banana Republic. (Versace, Burberry and Banana Republic are all new to the list; others have placed in the top ten before.)

In the youngest group of the survey, age 21 to 34, Guess, H&M, Diesel, Zara and True Religion also made the list. Among the 35-to-44 demographic, Lacoste, Hugo Boss and Coach did well. And in the 45-to-65 segment, Yves St. Laurent, Izod, and Diane Von Furstenberg appeared.

The dramatic shift "reflects more than just the economy," Passikoff says. "What we're seeing is a commoditization of brand. The average consumer can see there really isn't much difference between a polo shirt from Izod, The Gap or Brooks Brothers. So brand marketing has become less and less effective -- since people can see there are few differences, and that more expensive products aren't always worth the price."

That has given consumers the power to ask: If it's not the cotton quality and the color and the buttons aren't falling off, what is the value to me? Brand has become a surrogate for that value."

That's why the Ralph Lauren brand scores so well. "If I say an item looks like it's from Ralph Lauren, that means something -- you can picture an ad with a lawn party or polo game or croquet. You know what that clothing will look like."

The reason so many big marketers don't make the top 10, he says, is that while massive budgets can generate high levels of awareness and better distribution, they don't mean consumers assign them any particular value. "Everyone is aware of brands like The Gap," he says. "It just isn't important to them."

(Source: Marketing Daily, 04/14/10)

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