Question) What do you do during a global recession when giant institutions are falling like cards?
Answer) You get scared about your future. And when you get scared, you do what every normal human being do. You hug your wallet and let go of your spendings.
While the US is gripped by Mortgage Crisis followed by a Financial feltdown, pushing global recession into depression, its normal that companies cut down on brand spending.
But if you are opportunistic and intelligent like the management of the Interbrand Top 100 brands of the world, you will know that this is the perfect opportunity to increase your brand spending and create a distance with your competition.
The logic is simple. Almost everyone will reduce brand spending, so the ones who will carry on will stand out. And during recession, customers dont actually forgo their spending. What they do is become more value conscious. So the brands who will understand the changing needs of the customers during recession, have a sympathetic view, cut down on excess cost and most importantly carry on brand building with more horsepower, will win.
After all, the best global brands showed us time and again that brands remain a far less volatile asset than any other assets – tangible or intangible.