The Best Brand-building Strategy in a Digital World
Brand is a concept that exists only in the mind of consumers. It has traditionally been a powerful instrument of differentiation for a company/product. No wonder how much companies across globe have invested in brand building.

In E-commerce age, where entire purchase journey of customer occurs through digital platforms (see Amazon) accessible through smartphones, brand values built for utilitarian products (see FMCG) have been eroded and instead replaced by such platform assurances (see Amazon’s Choice).
This is especially a threat for bigger established brands. For example, on a E-commerce marketplace, many customers would prefer a higher rated shoe (with hundreds of reviews) from an upcoming small brand over a similarly priced lower-rated shoe (few reviews) from an established brand.

Though such an algorithmic disruption is limited to certain product categories covered by these e-commerce players, the principle stays true even for those industries where customers prefer physical interaction with the brand such as Automotive, Hospitality, Jewellery, etc.
With such democratization of information, playing only on product’s functional differentiation may not be the most effective strategy from a brand-building POV in the long term, brands need to nurture their image by demonstrating strong benefits of brand association to their customers.
Brand values clearly connecting with customers and creating a language for self-expression, where having products feels like gaining membership in a club (more exclusive the better!)
Translating to product terms, this requires a strong focus on intangibles (style), at times moving upscale (premium), and maintaining strong communities using your products (see FitBit) from whom you would want to turn your brand loyalists ultimately into your brand advocates.
Simply saying, the best brand-building strategy is to give more power to your customers, spend more on nurturing their relationship with your brand and enable them to become your greatest brand influencers.
