Commitment to change despite uncertainty

The world’s leading retailers have a living, flexible expression of their brands that enables them to fulfill different roles and be more in tune with customers’ lives.

In the post-digital world, every company is an international entity. As barriers to entry continue to fall, retailers find it easier to take their stores into new territory, but it’s not only the ability to cross borders that makes a brand global.

The pressure on business to expand abroad is immense thanks to the push of slow growth at home or the pull of the world’s burgeoning middle class, eager for a better quality of life. The world’s leading companies are up to the task, adept at overcoming the complexities that an international base adds to administration and operations.

There’s a difference between retail brands that are international ― those simply planting flags in San Paulo, Hong Kong or Mumbai ― and those that are truly global-managing by brand across different cultures. Delivering the brand globally with clarity, commitment and consistency depends on the long-term involvement of those who work with it every day.

We have a fascinating job at Interbrand. Our annual studies never fail to illuminate the regenerative power of brands, sterling assets in the turbulent and intricate global markets of today. The discussion we lead becomes even more compelling when it’s about retail. For it is at this moment, the point of sale, where the rubber meets the road and a brand’s value translates into a decision to buy.

Retail encompasses so much of life and culture, influencing taste, preferences, habits and behavior. More than just a practical means of keeping fed and clothed, shopping is symbolic and aspirational. It represents the search for a better life, the promise of a brighter tomorrow. That’s why brands loom large in our imagination and are woven into the fabric of major life events. As an everyday cultural practice, shopping is a shared experience, whether online, at the mall or in the store. Retail even shapes memories, as we fondly recall favorite objects, trends and experiences.

For those on the other side of the counter, the creation of an immersive shopping experience requires a talent for originality, a spirit of inventiveness and sensitivity to human needs and desires. From product demonstrations to the helpful guidance of a sales professional, retail experiences can be educational and uplifting, inspiring us to be more stylish, organized, connected, healthy or environmentally aware.

The best retail brands are not unlike people: living, evolving and involving; initiating change and responding to it. That’s why, even when markets are as volatile as they are today, we can confidently say that brands, just like you and I, have the potential to change the world.

Outstanding retail brands, such as those on our list, are marked by their ability to transform the ordinary into the desirable. One of Brazil’s top names, Havaianas, reinvented the humble flip flop, for example, turning a simple functional item into a sought-after fashion staple. Uniquely Brazilian yet universally appealing, its brand messaging is creative and engaging and its social responsibility platform isn’t just PR ― it’s a part of the company’s ethos.

Great brands don’t simply talk to people. They inspire participation and invite people into experience. Canada’s Lululemon Athletica is more than just yoga wear and athletic apparel ― it celebrates those whose lifestyles reflect the brand’s culture and holds events and classes that are unique to each neighborhood, allowing the brand to establish strong local ties to every community it serves.

Rather than remain one-dimensional, the world’s leading retailers have a living, flexible expression of their brands that enables them to fulfill different roles and be more in tune with customers’ lives. Shoppers in Southeast Asia love their neighborhood hypermarket, Big C, which has become part of everyday life in Thailand. But in times of crisis, such as the floods of 2011, Big C worked with the Red Cross, providing shelter, medical supplies and emergency donations. Big C, by its actions, also stands for “community care.”

As such examples illustrate the best retail brands exist for more than one reason. More often than not, they serve a purpose higher than profit ― a human purpose ― and never remain stuck in time. They evolve with the world, remaining relevant and responsive even through economic, social and digital disruption. It’s not just about minding the shop ― it’s about bringing the best and brightest human minds together to reinvent the very notion of what shopping means today.

While all successful retail brands emphasize operational ingenuity and profitability, the remarkably high performance of the world’s best can be measured by their willingness to change and their ability to understand why change is needed. It is these exceptional brands that start new conversations, innovate new models and inspire us all to participate in the cultural experience we call shopping. They are the ones that truly drive demand and create desire.

The store is the experiential center of a brand

A retailer’s brand experience brings its relevant differentiation to life. It helps sell more. Customers love a great experience as much as they love great products. The store, as the heart of the brand and its emotional center, cannot be starved of investment and innovation, or appropriate levels of design, media and technology. It needs to be the showcase for interesting new collaborations to keep things exciting, whether it’s a luxury jeweler or a humble dollar store.

Predicting that people will do without stores is like saying that movies will disappear. Even if we can read a script online, it doesn’t mean we won’t need to watch a film.

In the future, retail stores will look different than they do today. The digital dimension and corresponding consumer behavior continue to evolve and change the way a brand experience is delivered. Now that the idea of shopping can’t be anchored in geography or managed as an event, the brand experience is too important ― and holds too much promise ― to be ignored. It’s critical that retailers focus on enhancing brand experiences no matter where they are.

This article was provided by Interbrand.