Does Brand Matter for Startups?

For top CPG categories 1923-1983: 20/25 brands held #1 position in their category the *entire* time 1983-Present: Only 4/25 kept the #1 position

Implication? Brand has never been more valuable for upstarts. Never been less valuable for incumbents.

Contrary to popular opinion, I think focusing on brand early in the life of your company is valuable.

Defining what your brand stands for and, these days, *who it stands with* is an easy way to cut through the noise and attract users who will spread the word.

It's a critical part of a product launch.

When people find a young brand they identify with, they shout it from the rooftops. Think of everything from SoulCycle to Bitcoin. Their champions are relentless. fwiw, this also helps a lot with recruiting. I’ve talked about this trend before as t-shirt theory

(Sidebar: This isn't about superficial marketing campaigns. If your product, people and values don't reflect your brand, then you're brand isn't what you think it is. Now back to the thread.)

On flip side, big companies using brand as a long-term differentiator feels less valuable than ever. Brand turnover keeps accelerating. It's easier for upstarts to poach niches in a market. Cool fades faster. Culture moves quicker. Easy to find yourself out of position.

From ketchup to razors to underwear, the big "enduring" brands seem to be able to rely less and less on their brand equity.

So what does increasing velocity of brands mean for founders? Unique branding is great for pushing your way into a market, but it's a short term tactic not a long-term strategy. You need something else - network effects, scale, better distribution - to win the marathon.

(Originally published as tweetstorm on January 22nd, 2019)