The psychological reason behind de-branding on the part of significant brands is to appear less corporate and more forward thinking. Brands have started playing with the basic human psyche. Customers preferred the generic brand over an elite brand due to the following reason. According to a Pew research, almost 93% of customers are satisfied with the use of generic brands. Also, 86% are committed to continuing their generic brand. Furthermore, evidence has suggested that consumers viewed the quality of generic products quite satisfying. This whole situation poses a significant threat to the brand’s market share.
To overcome this situation, brands have started de-branding their selves to appear as a more familiar product to the potential consumers. Let’s suppose, a product is produced by brand X, however, its generic brand is available in the market. The consumer attraction lures towards the generic brand. Since the perceived quality is similar with an added benefit of lower price. This shows that consumers are no longer willing to pay for the expensive branding campaigns wrapped in the price of a branded product. A case in point is Starbucks Coffee. They have opted to remove their name from the logo, and leave the center image for display only. The reason behind this is to appear more like a local coffee shop as well as less corporate. Another similar case is Coca-Cola debuted under the banner of “Share a Coke” and replacing its logo with 150 given names.De-branding of the product is the future of branding. Customers are more prone towards generic products as they are receiving the similar value at a low price. A consumer realizes the real value of the product or services. Added, instead of brands, real tones of voices are the interface between consumer and products. Companies are using various technological & digital services for optimizing their content and market that content towards the prospective customers via multiple digital mediums. Further, creating awareness among the potential customer’s regarding products.
In the technological innovative world, consumers are comfortable with everything being interconnected. Now, consumers are not after exaggerating brands which sets apart audiences from each other. Rather, they are interested in brands which bring people together. Precisely, customer needs fewer better-quality products at a suitable price. They are no more interested in paying hefty amounts on the name of elite brands which is providing zero value to customers.
