In recent years, we have seen a growing increase in consumers’ purchasing power for various types of products, with them becoming more selective in choosing brands that represent the desired item or commodity. Given this new market authority, is corporate power in this relationship declining? Who sets the rules of the game now? And how can business owners prepare to try to gain a bit more authority over sales?
The buyer-seller relationship has been built in our society since ancient Egypt. In an article titled ‘A Short Story of Branding,’ the author highlights that the first commercial use of brands was as a sign of ownership. By placing their name or symbol on a good, such as cattle, the owner could mark their possession. The ancient Egyptians were the first to use brands as signs of ownership at least 5,000 years ago. And that, of course, is where the word ‘brand’ comes from.
At their core, brands today serve to literally mark a type of product and declare that it belongs to an entity. This need arose when civilizations began to prosper, and everyday items started having multiple producers, creating the need for a way to differentiate the origin of each.
However, in the past, brands did not carry the strength and messaging they began to present after the Industrial Revolution and the growing number of competitors for commodities and everyday products. Something more than just a name synonymous with quality was needed—after all, competitors could obtain the same machinery and use the same production methods—whether through a company’s storytelling, its viewpoints, charitable activities, or other strategies.
What was once a unique activity became a continuous process. Today, we can see that most companies strive to reach an audience that, incidentally, may even belong to the same niche for many of them. However, their strategies, values, stories, and ways of adding value to their products differ, and so do their approaches.
Nowadays, however, there are so many brands for specific market niches that customers can choose among ten, twenty, or thirty competitors, considering only the differentiating points that each finds important. Basically, consumers perform an evaluation by comparing various aspects and analyzing whether they align with their ideals.
This has led, for example, to many companies beginning to care more about social causes, values, social responsibility, innovation, personalization, convenience, speed, after-sales service, and fair pricing—entering the battlefield to differentiate themselves from competitors and attract potential consumers with the aim of fostering loyalty.
Since the beginning of branding and the use of brands, consumer power, or authority, has only grown alongside technological advancements, gaining more and more authority to select desired products. Today, consumers have more choice power than ever before.
Given this scenario, it’s clear that authority in the purchasing process has considerably shifted from brands to consumers, who now play an active and discerning role in selecting what they consume. Whereas a recognized name once sufficed to guarantee a sale, today it’s necessary to go further: understanding the desires and values of the audience, establishing authentic connections, and building a presence that directly speaks to their expectations.
Thus, brand authority has not disappeared but has been redistributed. Now, it must be constantly earned, sustained, and renewed through strategies that value not only the product but also the experience, identification, and shared purpose with the consumer.
