The retail industry has been under pressure for many years, with the dissolution of Debenhams and the closing of many John Lewis stores sounding alarm bells for all. In this context, a successful sale of Selfridges represents not only a huge bet on the UK retail industry, but also a perfect example of how iconic brand status insulates companies from market downturns and can add value to real estate.

In the wake of the pandemic’s longer lasting effects,
it has been harder for assets to remain attractive. Many are currently in a position of redefining and fortifying the purpose of commercial real estate. At the same time, competition has never been as steep with new ways of working creating more spaces with which commercial real estate must compete. As such, creating a strong and resilient brand is going to be a vital part of this re-building process.

WHY DO YOU NEED A BRAND STRATEGY?

A fact that needs stating is that a brand is more than a set of colours and a logo. The world’s most successful brands invest heavily in strategies that are at the foundations of their decision making, and our industry is no different.

Brand strategy is the expression of your business strategy – it’s that important. You need to be able to capture the essence of the asset. Describing its story and explaining why it’s different from the rest of the market. Doing so is more important than ever given the situation our industry finds itself in.

Companies who have invested in fostering strong brands receive wide ranging benefits. When market conditions are unpredictable, strong brands are adept at ensuring stability in value. Acting much like a buffer against market forces – decreasing the speed at which value declines and increasing the speed at which it can recover.

Within real estate, well-executed brand strategies can generate success in even the most difficult of circumstances. For example, we worked with Arax Properties on a project called DUO throughout the height of the UK’s Covid crisis. During a period when demand would seemingly be at its lowest, the project secured almost full-let status, against high odds. This is one example of how a properly executed brand strategy delivers results even when situation is seemingly not in your favour.

HOW CAN BRANDS BE VALUABLE?

Brands generate their own tangible value as well as protecting the existing – another reason to invest in brand strategy.
If an asset can successfully make the journey from a place to a landmark (outlined in our article on the Maturity Model), the value that is created around your brand is enormous.

At that level, real estate becomes more than just bricks and mortar. The brand, just like Selfridges, becomes wedded to the asset.

Every year Kantar, the world’s leading data, insights, and consulting company, creates an annual leader board for the word’s most valuable brands. They generate a metric of ‘brand value’. This is the monetary amount that the brand contributes to the overall business value of the parent company. The aim is to isolate the value generated by the strength of the brand alone in the minds of consumers when all other elements

are removed. Every year the usual suspects (large consumer companies) like Amazon, Apple and Google take the top spots. However, the principles of understanding the value that a brand has in and of itself can be importantly applied to the real estate industry.

WHAT MAKES A BRAND VALUABLE?

How do we begin to build valuable brands around the assets we are marketing? First and foremost, it needs to be something deliberate, involving the investment of time and resources. Valuable brands make a difference to the customer. Broadly, this difference is an amalgamation of individual attributes like creativity, responsibility, purpose and trust. If done correctly, developing each of these attributes are simple ways to position your brand to grow in value.

The recent global crisis provides an opportunity for brands to redevelop their position in the market. Huge events like the pandemic instigate an opening of people’s minds. Priorities change, and people become open to new avenues. This opens a world of new customers to be accessed. In the face  of a huge wave of competition in the market, real estate brands need to be properly positioned to succeed. Conversely, this uncertainty also increases the difficulty of retaining existing customers and tenants, further increasing the need for better brand strategy.

WHAT COULD WE DO FOR YOU?

What does this look like in real terms? As an agency we are strategically-focused, offering a wide range of in-depth strategic and consultative services. All of these support the strategic insight for brand development that helps deliver brand value and ultimately commercial results.

From a suite of available services, the applications will vary depending on the project goal. We are positioned to help with any challenges that our clients face.

• How do we achieve cut through in a competitive market? We’ll do strategic brand positioning to show how your asset can stand out in the market, highlighting unique key USPs (See our work on More Resorts & Residences and H2O).
• How do we target an audience effectively? We can set up messaging hierarchies by market and by B2B vs B2C focus like we did on 100 Bishopsgate.
• How do we identify the most effective marketing channels for our campaign? We can complete in depth quantitative and qualitative research programs that analyse the audience from all angles.There is no one size fits all approach to brand strategy in real estate. If nothing else, it represents an opportunity to generate value in an asset beyond the bricks and mortar offering. At its best it can be the catalyst for transforming a destination into a global landmark.

CONCLUSION

What’s the difference between Coca-Cola and Pepsi?
A strong brand. This is the essential principle for investing in brand strategy. Even in a situation where your product is the same as your competitors, brand strategy helps you create a meaningful difference to your customers.

So, in a market that is now experiencing intense competition, invest in brand strategy to help your assets stand out. Identify and amplify what makes your offering different to your competitors, utilise the right channels and target the right audiences, and work with an agency who can do it all for you.

Anke Kadolsky

Group Strategy Director