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The decade saw its fair share of brand bashing, bans and boycotts

The decade is defined by globalised consumption patterns and a tetchy consumer-brand relationship

maggi, nestle
Arundhuti Dasgupta Mumbai
5 min read Last Updated : Dec 31 2019 | 2:44 AM IST
If there is an abiding story that marks the decade, it is that of Nestle India and Maggi. Even though this was not the first time an iconic brand ran afoul of regulators and consumers—Cadbury (now part of Mondelez India) had found itself in a similar spot over worms inside chocolate bars in 2003, the Maggi story snowballed into a crisis like none other.
 
The difference say experts is the all-encompassing, all pervasive nature of the consumer brand relationship. The decade has seen the emergence and maturing of a new breed of buyers, the smartphone consumers who move seamlessly between marketplaces, communication networks and the real and virtual world and expect brands to do the same—that is be omnipresent, alert and engaged 24x7.
 
The big shift that several consumer reports and brand experts point out is that the line that existed between online and offline behaviour is fast disappearing. It is reflected in the expectation that brands must react instantly to allegations and adapt to changes happening offline and online. It is seen in the way people shop or choose the brands they desire.
 
Consumers want answers and action in real time, no matter where brands build their universe. And the trick lies in reacting quickly to developing situations instead of withdrawing from the conversation or serving up bland officious statements. Brands across categories (see box) have had to learn this lesson.
 
The new consumer has also overhauled the way brands communicate. Purpose led branding has emerged as a potent tool. According to a report by Accenture earlier this year, ‘From me to we: The rise of the purpose-led brand’ consumers want companies to stand for something bigger than what they sell. Hence brands that communicate their purpose and demonstrate commitment, are more likely to attract consumers and influence purchasing decisions. 
 
“Technology and media have empowered consumers to take a stand on their opinions and beliefs. Price, product quality and customer experience continue to be important but a brand’s purpose beyond profit has emerged as a clear differentiator,” Anindya Basu, geographic unit and country senior managing director, Accenture in India had said during the launch of the report.
 
Consumers trust brands that demonstrate commitment to a cause or sincerity in their promises. According to Kantar research, trust as driver of brand value is more important today than ever before. The total brand value of trusted brands in India has shot up several times in recent years, according to the last report that Kantar did, it went up from $1,385 million in 2014 to $3,685 million in 2018 and has climbed up further ever since.
 
Trust will play an even greater role as brands dig deeper into the hinterland. According to a spokesperson for Kantar, trusted brands are those with a clear purpose. Purpose, he defines, is having clarity about how the brand is making consumer’s life better.

Battling crises
 
Flipkart: The e-commerce giant ran into trouble when ‘The Big Billion Day Sale” on October 6, 2014 crumbled under the rush of online shoppers. Products were not available, servers crashed and social media ran stories of dropped orders of ‘Flopkart”. Much has changed since then with the sales getting bigger and more frequent and running more smoothly
 
Uber: It was run off the roads in 2014, after a passenger was raped by one of its drivers in Delhi. The brand’s lax communication andslow reaction to the controversy fuelled the crisis further and since then, the India team has worked hard to rebuild its reputation and make safety one of its key brand pillars in the country
 
Maggi: Nestle India faced a six-month ban on its popular brand of instant noodles in 2015. For a brand that had become a near-generic term for the category through aggressive marketing practices, high-profile celebrity endorsements and memorable advertising, the controversy proved to be its unmaking and then, also its resurrection in its present format as a snack that is not just safe for kids, but also healthy for all
age groups
 
IndiGo: The airline was caught in the eye of a storm on social media in 2017 when two staff members were seen getting into an altercation and roughing up a passenger on the tarmac at Delhi Airport. The video, first aired on television, soon went viral online with consumers resorting to #BoycottIndigo on various channels
 
Airtel, Ola: Discrimination and hate against religious communities played a big role online and in 2018, the two brands were caught in the crossfire. While Airtel was pummelled on Twitter for furthering religious bigotry, by being slow to respond to a subscriber’s prejudiced rant against an employee, Ola fared better because it was quick to act against a rider who refused to be driven by a person of another religion
 
Zomato:
In 2019, the food delivery app found itself in the spotlight when users turned a tweet from its founder Deepinder Goyal “Food doesn’t have a religion. It is a religion,” viral. The tweet came after a customer discriminated against a delivery person on the basis of his religion. The company was prompt with its condemnation, but it led to many deleting the app from their phones



Topics :Nestle Indiamaggi banCadburyFlipkartUberIndiGoAirtelOlaConsumer brandsZomato