THIS ARTICLE BY MARK DI SOMMA IS TITLED:
Brand longevity:
No. 5 is alive!

Lessons in durability and relevance from a near century-old brand.

We can all think of them: brands that were once icons and that now seem more like high street relics. Flagging, they wait for a restructure or buyout, shadows of their former selves: surviving because of who they were rather than what they are. Others looked to have the staggers, only to have picked themselves up and walked across water. The truly intriguing though are the brands that have retained or even grown their strength with the fullness of time.

Why do some brands that have been around for decades continue to captivate us whilst others that were once considered invincible have died or lost profile? How do you avoid redundancy in the attention economy?

Understand the factors that are in play.

First, history, and its enemy, impatience. The past plays a critical role in branding, because consumers make decisions based on what they have known and what they have come to expect. Time adds credibility, presence, track record, reliability and the powerful and cumulative effect of collective memory. Nowhere is that dynamic more powerful than with longstanding brands.

As Joseph Benson has pointed out in his article, Heritage: A Master Brand Builder, “Heritage speaks of status, character, social class, and a history. It speaks of a traditional way of life that is of value to present and future generations. It speaks of inheritance, of shared experiences, and of a common history.” These are powerful and emotive bonds. In a world of turbulent change and burgeoning choice, brands with time behind them are stalwarts.

Yet too many brands ignore their legacy and the ties they have so carefully built up to pursue seemingly spur of the minute business decisions or change-for-change’s sake strategies that confuse their customers. Jean-Leon Bouchenoire remarked on this recently in an excellent article on brandchannel.com, “Some companies imagine that they can change their strategy, change their CEO, change their advertising agency, refashion their products and still expect the brand to perform – regardless of what the original brand reputation was built on and what the brand stood for.” Bouchenoire’s reference was to the rise and fall of loyalty within the automotive industry, but it is an observation that rings just as true across other sectors. These companies choose, for whatever reason, to turn their back on their traditions, confusing their customers, and even their own stakeholders, in the process.

Secondly, nostalgia and its mate complacency. Brands that rely purely on their longevity and “glory days” are at real risk of finding themselves overtaken, overlooked or undermined. Credibility is vital but past reputation is no defence against the insatiable demands of today’s markets. It’s an increasingly short step from familiar to boring, as the collective attention of consumers continues to contract.

Thirdly, speed. Globalisation has powered an extraordinary move to scale. Brands that today are icons of our age – Microsoft, Google, E-Bay, even Viagra – have arrived and loomed large in shorter and shorter periods of time. The opportunity to market much more widely has made that both a possibility, and to some extent a necessity.

So how do brands balance the powerful asset of longevity and heritage on the one hand, with the need to continually evolve to meet changing consumer demands and the dynamic initiatives and responses of competitors? Who’s done it well – and what can we learn from them? Ladies and gentlemen, Ms Coco Chanel …

Enduring ideas defy trend

The House of Chanel was founded by Coco Chanel in the first decade of the 20th century. At a time when women had very little presence or profile in business, Chanel established and consolidated an international business dedicated to delivering luxury on her terms. A wily perfectionist, famed for her attention to detail and her determination to retain control over even the smallest detail, Coco Chanel drove the diversification of the business from clothes and hats to perfume and other accessories.

Chanel’s genius was to start with a simple idea – no-nonsense clothes that helped women feel comfortable and dignified – and to develop that into a classic and instantly recognisable style capable of expression across haute-couture, ready to wear, jewelry, shoes and of course fragrances. This amazing woman died in 1971, and yet 35 years on, the Chanel brand is as powerful today as it was when she lived. Why?

Because the Chanel brand has always understood the irony of longevity: one must be current, even ahead of one’s time, but never a slave to trend, and – most intriguing of all – never a simple reflector of fashion. As Coco herself is quoted as saying, “fashion passes; style remains”.

Beyond fad and whim, novelty, outrage, discounting or momentary social conditions, Chanel gets the fact that it is the ongoing commitment of consumers to the idea of the brand that determines success.

Powerful brands like Chanel have lasted because the single-minded thought that drives them is as powerful today as it was when Coco made it her own. The power of Chanel is the power of the pull of Paris – and Paris, as a symbol of sophistication, romance, sexiness, glamour and beauty, shines as bright as ever. Coco Chanel herself embodied that sense of style, and tapped her intuitive understanding of it time and time again to create products and ideas that women found irrestible. The famous Chanel No. 5 for example was the first commercial perfume not blended to reflect a single flower. Instead, the mix of aldehydes, May roses and jasmine was intended by Chanel to create a scent that “reflects my personality, something abstract and unique”.

The famous double-C logo, which originates from the early 1920s, embodies the cool, confident, unflappable presence that is Chanel. It remains largely unchanged – a graphic argument for not messing with success.

Coco Chanel’s passing could so easily have signalled decline, yet the appointment of Karl Lagerfield as Artistic Director for the couture, ready to wear and accessories parts of the empire in 1983 didn’t detract, or distract, from the allure. Karl was a gamble that worked, and it is a huge tribute to Lagerfield that he made that happen. He was certainly helped in the quest to continue the legacy of one of the great fashion houses by the fact that Chanel was an unmistakeable and unquestioned identity – but his immense gift has been the integrity and insight to recognise that this is a strong brand that needs to reference its heritage and yet move with the times.

In the process, the Karl Lagerfield/Chanel partnership drove something fascinating: the cult of the celebrity designer. There have been others before, and more since, but Karl Lagerfield and Chanel found a way to dance that benefitted both parties, overshadowed neither and spawned a new level of brand architecture: Karl Lagerfield for Chanel.

Lagerfield honoured the spirit and the memory of Chanel herself, but then added to it with his own immense talent and pool of ideas. He sums this up: “not too much respect and a little bit of humour are indispensable for the survival of a legend.” Today, as a result of Lagerfield’s dexterity, Chanel retains that indelible essence that has brought it to this point. Under Lagerfield’s careful stewardship, the brand has also progressed, retaining its freshness and enticement. And Lagerfield himself has added elements to the mix that have helped keep the brand alive: an idiosyncratic sense of fun; and the ability to add something of his personality without detracting from hers.

The continuing icon status of the Chanel brand is no accident – and there are powerful lessons for others in why this nearly 100 year old brand is still a brand of choice for everyone from worldly rappers looking to name-drop to sophisticated fashionistas looking to make a stop-the-room entrance.

• Chanel has remained true to itself. The Chanel brand understands that the legend of Chanel is a huge asset that it must jealously protect and nurture. Chanel has evolved, changed, challenged, amazed … but it is always unerringly Chanel. Those intertwined C’s symbolise that - instantly. The sight of them is an immediate promise. Pierre Cardin or Mary Quant – brands that in their time were also hugely powerful and influential – have not fared so well.
  
  Whilst others have capitalised on licensing and other market temptations, turned their back on their roots or simply faded with time, Chanel remains a brand of wealth, exclusivity and sophistication. Regardless of whether you buy it or not, there is no mistaking the personality – and no doubt as to where you can expect to find it. Chanel today is as fiercely independent in its expression and its preservation of its identity as its originator. Many have imitated the styles. What they have never been able to copy is the spirit – a powerful lesson in itself for those that think imitation is a short-cut to increased competitiveness.
  
  One wonders whether consistent private ownership has played some role in this successful strategy. Reporting only to themselves, the House’s owners have perhaps been able to retain their integrity and think about the long-term in ways that public owned entities, with their investors’ huge demands for instant growth, might not have permitted.
  
  
• Chanel has understood the need to be accessible and yet specific. One of the great ironies of the Chanel brand is that it is known by everybody, aspired to by nearly all, and yet worn and experienced (in its couture anyway) by very, very few.
  
  By building its reputation, and yet restricting its clientele, Chanel has continued to cultivate a mesmerising mystique and allure in the face of unrelenting competition. They’ve also understand the huge power of access points. Even if you can’t afford the dress or the suit, the cosmetics and fragrance are there for the asking. That’s because Chanel is,and always has been very, very clear about its audience. Fads and trends come and go – and ideas drift in and out of fashion. But a “classic” brand like Chanel understands that timeless appeal is much more important than whim.
  
  Unlike others, this company has not succumbed to “catch all” marketing. The very fact that Chanel is in the fashion business makes this all the more remarkable, because they have not let what they do year in, year out get in the way of defining who they are and what they believe in the longer term.
  
  
• Chanel has always been about the detail. Coco Chanel herself understood that time-proven brands never take their eye off their image, and that powerful brand stories are built on substantiation and consistency. In Chanel’s case, this attention to detail is legendary. A true Chanel jacket, for example, retains its straight line through a gold chain stitched into the hem.
  
  At a time when so many companies are shipping what they do off-shore, or short-cutting what makes them unique in the pursuit of efficiency, there’s a cautionary tale to be drawn from not losing or outsourcing what makes you special. To those that care, the Chanel level of detail is unmistakeable. The detailing itself may change, but the spirit of meticulousness and the attention to the smallest elements are never compromised.
  
  
• Chanel has a powerful story. Coco Chanel’s humble beginnings were also a blessing in disguise. Most of us are aware of the rags to riches story of Chanel’s life. Born in lowly circumstances and raised in an orphanage, Chanel changed her name from Gabrielle to Coco supposedly in honour of a song she performed in cabarets. In time, she raised the capital to start her own fashion business. Her circumstances forced Chanel to literally create the story and the philosophy of the brand from scratch. She was perhaps the first celebrity designer; the first person to turn herself into a living embodiment of her philosophy in order to highlight her work. She was one of those rare people who understood how and why what appealed to her would also work for others. She drew on her instincts, talent and preferences to create lines that were timeless, intriguing, daring and aspirational. Her personality bestrode her work, and yet it avoided being self-indulgent. That story is still very much part of the way that Chanel conducts its business.
  
  
• Chanel has never settled for being famous. The little black dress, the tweed suit, the quilted handbag, perhaps the most recognised scent in the world … Chanel has contributed so much. Lesser brands might have been tempted to hit “cruise control” and mine the brand for all it was worth. Not Chanel. Today, under Lagerfield, it is still a synonym for perfectly-stated chic. Chanel invented herself and the brand she became. But Lagerfield has continue to refresh and revitalise the icon in ways that continue to win admiration and praise.

Some may question whether Chanel is a realistic benchmark for those looking to manage older brands in more prosaic sectors. Far from being an easy choice, however, I think Chanel is an example of a company that could so easily have got it wrong – and chose not to do so. After all, they have a particular audience, they are in an industry that reinvents itself by default, they are surrounded by players who can undermine them on price and distribution, and they were at one time synonymous with a charismatic, high profile personality who passed on. In many ways, the odds could easily have stacked against them.

The amazing talent of those who manage the Chanel brand is their ability to absolutely control the dynamics in their favour. Chanel is a story of style over money. It personifies its founder’s belief that anyone can have money, but only a few recognise style. And yet, at the same time, money has kept the brand from being compromised, because Chanel is simply not accessible to those who might do its image harm. You can’t find a Chanel store in every city, and even when you do, the breathtaking cost of even the smallest item of clothing will stop most in their tracks. Burberry paid the cost for not protecting their brand this way.

11 lessons from the House of Chanel

So why have Chanel succeeded where others have not? What are they doing that other brands their age have not? Here are my 11 big takes from the Chanel story. They form important lessons for time-honoured brands looking to future-proof their progress:

• Have a cause
• Understand what is timeless about what you offer and what is not
• Recognise what those who are loyal to you really love about you, and what others have yet to find
• Don’t change anything that makes you competitive and distinctive
• Do change in ways that are true to your spirit yet meet the needs of your customers
• Live your brand story without hesitation
• Work within the absolutes of your philosophy
• Never be complacent
• Be where people expect to find you and/or would like to find you
• Keep your customers curious
• Know your history, but don’t be a slave to it

Markedly different levels of brand awareness and understanding

Sadly, too many older brands have failed to learn from their history. Last year, online brand authority, www.allaboutbranding.com, ran an international survey that showed clear trends in brand awareness and understanding between different sectors, organisations of different sizes, and those with brands of different ages. The full results are yet to be published, but I was lucky enough to preview the key trends. One of the many insights to emerge was that very young brands are highly brand-literate, that this understanding wanes with age, and that lack of understanding poses an increasing threat to older brands.

These results concur with findings from McKinsey that show new brands capturing brand strength faster and more efficiently than longstanding, incumbent brands. Starbucks, for example, accomplished in years what Maxwell House took decades to do.

That’s because the challenge that older brands face is the need to continue to change in order to be competitive, whilst remaining true to the spirit that propelled them to fame in the first place. They find themselves accounting to a different set of rules than their younger competitors. What too few of them are doing though is using their legacy constructively and to their advantage.

Trouble starts when outlook stops

As brands age, the research indicates that there is a very strong risk that they will shed their re-inventiveness for a range of reasons.

Firstly, tradition can be a strong strength but also a destructive inhibitor, particularly when the love for ‘what was’ starts to stand in the way of ‘what needs to be’.

Secondly, there comes a time when many aging brands stop thinking of themselves as brands and think more of themselves as corporates. At that moment, their outlook rapidly becomes an “inlook” – and market astuteness morphs into institutional self indulgence. At this point, they start to regard market position and customer loyalty as their right and perhaps stop taking their competition as seriously as they might – competition that today fully understands the power of brand and is not afraid to exploit it.

The challenge of consistent surprise

The gain-attention challenges that faced marketers 20 years ago have been replaced by the keep-attention challenges of today. Younger consumers in particular, propelled by the pace of technology and the change going on around them, are impatient for the new. Fashion and fad are quickly replacing loyalty as consumer drivers in a whole range of sectors – and because these younger consumers have grown up with brands, their respect for heritage is nil, their expectations are enormous and their willingness to put up with anything but the latest doesn’t exist.

But it’s not all doom and gloom. Brands like Chanel show us the power of having experience, knowledge and equity on your side. The challenge that all mature brands face now is to continue to find new, bold and exciting ways to engage in ever shorter turnaround times.

The solution is one built around the premise of consistent surprise – continuing to evolve and to astonish, whilst remaining utterly aligned to the core thought that underpins identity. Those prepared to participate will continue to hold public attention and build an active and engaging history like Chanel. Those that don’t are probably heading for bargain-basement land!