Trends have a way of spreading rapidly, from coffee shops to bubble tea, fitness studios, and street food. While new trends burst into the scene almost overnight, there seems to be another trend that makes it complex: large business owners thrive easily in such trends, while small business owners 0find themselves on the losing end.
So why does this happen, and what can small businesses do differently?
Here are reasons small businesses struggle and how large businesses use strategies and branding to stay ahead.
1. Big business owners enter trends strategically
Big brands do not follow every trend. They join the trend first, invest heavily, and clarify it. Their strong capital base equips them to reserve the best locations, expand rapidly, and absorb initial losses until the trend gains traction.
What is perhaps more important, however, is that they are known entities, which people are more likely to test a product or service from, even though it may be a relatively new idea in itself. This makes large businesses a step ahead in the context of a business environment in which trending is the focal idea.
2. Small businesses enter too late
The late entry of small businesses into trends creates a competing environment that leaves little opportunity for these companies to differentiate themselves from their competitors with strong brand recognition. As the trend has already been established and proven successful, the market will be “crowded” with competition, and there will be limited availability of customers’ attention to purchase the products/services of small businesses.
3. Strong branding gives big brands an advantage
In the absence of strong branding for small businesses, many of these companies often rely on similar logos, pricing strategies, or they simply copy the already existing companies and their successful marketing techniques, which has led to the loss of brand difference. In instances where there has been an increase in operating costs or there has been a decline in the number of potential customers visiting the small business’s store, these businesses lack any brand loyalty to base their future success on.
Weak branding strategy for small and medium enterprises (SMEs) is what causes small businesses to fail rather than the trends themselves.
Strong branding allows large brands to create a consistent brand experience, as they are not simply selling a product. Everything about their brand, from the brand’s visual identity to customer experience, is integrated and creates a consistent message about their brand across all channels of distribution, both offline and online.
Strong branding also creates the perception of a higher value for a business’s products or services. Over time, the perceived value of a business’s brand enables them to charge more, keep customers, and have the ability to sustain their business for years after the trend has peaked.
Small businesses can compete in a market with larger, stronger, and more established brands by creating a position for themselves with particular brand positioning tactics and by strategically branding themselves, even if they have a limited budget.
- Identifying a target market with defined audiences.
- Creating a strong brand identity through storytelling.
- Maintaining continuity throughout all digital interactions with consumers.
- Establishing trust and credibility with consumers ahead of looking for short-term gains in brand knowledge.
Reach More Digital partners with small business owners to develop and implement these marketing strategies in order for them to compete with larger organizations.
Size does not determine a brand’s success; rather, successful brands will connect to their customers, provide a clear message, and be a brand that consumers can relate to and have confidence in. Therefore, smaller businesses will have the best chance of success against larger businesses by creating an intentional brand that consumers remember.
You may also like: The Impact of Inconsistent Branding On Your Business (And How We Can Fix It)
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