By Paola Norambuena,
Chief Strategy Officer
While every brand’s path is unique, among this year’s Breakthrough Brands, the standouts share some common characteristics that set them apart — ones that form insights that every type of brand can learn from and consider for future strategy.
Built from a cult following
Many Breakthrough Brands were launched to a (sometimes small) group of passionate, loyal followers that helped drive initial adoption — who themselves were instrumental in influencing new followers. These brands weren’t mass-market designed but have expanded their relevance to an ever-growing audience via quality and perceived limited appeal. And it’s no surprise that many were also founded by leaders whose charisma, personal brand, and leadership style are vital to the companies they lead.
From Xero’s accounting software conference attendees being described as “true believers” with “cult-like overtones” to the founder of SWEAT’s bikini body e-book being downloaded illegally over 1 million times, brands are evoking passionate responses around products that were once not viewed passionately at all. Relationships can be built with products, or with people, like the trainers and community around F45. Word of mouth can happen around toilet paper, when it’s from Who Gives A Crap. And a loyal following doesn’t just come from consumers — investors can be devotees, too. Allbirds have starred on the feet of Silicon Valley CEOs and people like Obama, and drew an early investor in Leonardo DiCaprio.
Commodity as a status symbol
Just as the aesthetic of wealth is changing, so are the things we consider status symbols — health, causes, commodities. Many emerging brands are redefining what it means for commodity products to step up, not just as everyday luxuries but as status symbols that say something about their consumers. From toilet paper to underwear, these are no longer things we hide from the world but share as social capital.
Thankyou has given us soap we can proudly display for a number of reasons, not least of which is what it says about the choices we make. We also know some people who are creatively stacking and posting pics of Who Gives A Crap’s colourfully wrapped rolls rather than hiding them. Allbirds shoes have become carbon emission-killers. Modibodi may be worn under, but proves that there can be pride in things we once had to hide. If these, and other brands like them, are raising the stakes in the basics — and changing our expectations — then there’s no category that will be, or should be, left untouched.
The rise of the B Corp
These are the purpose-bred brands. One area where our local Breakthroughs have led the way is in their response to the increased consumer demand for brands to take more responsibility. Our list shows that B Corp status can make for a viable business model and sets the example for others on how to meet higher standards — not just in sustainability, but all manner of causes.
Of our list, Koala, Allbirds, and Who Gives A Crap are all certified B Corps. But it’s not just about certification, it’s about action. Atlassian’s co-founder is famously vocal about environmental and social issues. Thankyou has launched a No Small Plan campaign to challenge the entire industry. Modibodi are committed to products that divert up to 124kg of landfill (from pads and tampons) per customer. As an increasing number of brands from across the world are signing up for the B Corp Impact Assessment, Australia and New Zealand is the fastest-growing region for B Corps (270 companies across 46 industries) and, according to the AFR in 2019, “Almost half of Australia’s top 200 companies are moving to adopt integrated reporting.” Such brands gain strength and positive influence by defending different ethical, and even moral, stances in everyday products and services.
Uncapitalism
The old formula for many essentials was simple: sell more stuff. Drive down costs, make it disposable, move more units, increase profits. But many Breakthrough Brands are challenging that simple notion — and making themselves worth the spend. What if we make less? What if we drive up quality, and increase its lifespan? By demonstrating long(er)-term value, there are future benefits for both businesses — in greater sustainability and loyalty — and consumers, as people become increasingly mindful of looking after what they have and how much they consume, post-Covid.
Brands like Koala and Allbirds are committing to doing one thing, or just a few things, very well. P.E Nation combines fashion and function, so the need (or appeal) for having separate wardrobes goes by the wayside. But it’s more than that. There’s an element of financial and operational transparency and responsibility as well. Thankyou discontinued their highly successful flagship water because of concerns around environmental impact — despite the fact it reportedly added millions to their portfolio.
Open-source generosity
Breakthroughs go further than just being transparent: they’re active sharers. While open source is nothing new in the tech sector, many emerging brands are taking an open-source approach to various elements of their brand. It’s all in service of improving and evolving the industry or sector. Such generosity works both ways, too — the more organisations share and succeed, the more they learn for themselves. Generosity enriches brands.
Atlassian takes an open-source approach to design, posting lengthy information on the methodology used to create the brand. Allbirds and Adidas set aside strategic and intellectual property concerns to collaborate and jointly develop an athletic shoe with minimal carbon impact. Thankyou publishes their approach to giving and highlights the challenges that exist within the charitable sector. And they were radically transparent in their No Small Plan campaign, sharing their spike in revenue during Covid, quite simply because they sold hand sanitiser and hand wash.
Remodelling the category
Breakthrough Brands are a breath of fresh air for consumers and a shot in the arm for the categories they compete in. They don’t get bogged down in category norms — in fact, they don’t think in category terms at all. They start by identifying a human problem to solve and ignoring any perceived restrictions that might get in the way. Then they rise, as a result of taking (calculated) risks, based on solutions to those human problems, and a freer style of thinking. All driven by that quintessential AU+NZ spirit of having a go. Breakthroughs essentially remodel the categories they touch, changing the landscape in the process and challenging competitors to likewise have a go.
Canva with design accessibility, Mona changing the way we interact with art, Afterpay with financial wellness. Xero making accounting beautiful. DoseMeRx with world-first precision dosing. Movember putting fun into doing good, without detracting from the seriousness of men’s mental health. And we could go on… all the brands in this report are fundamentally remodelling what we know as categories.
