There is a strong disconnect between legacy brands and the generation that possess the most buying power in history – Millennials. Brands are also facing an additional strain caused by the goliath, Amazon, who, in more and more industries is being cited as the destruction of established brands and retailers.
So, who is winning? Niche brands. Or at least the feeling of a niche brand. In the last year, niche CPG brands have grown by 3.1% while large brands have declined by -0.5%. Consumers are indicating that they desire products that they relate to, that they connect with, and prefer brands that appeal to them personally rather than the mass market.
It’s for these reasons why we see Adidas gaining more traction as of recently. They have been able to become “cool” by leveraging collaborators to create niche product. Existing footwear brands have three choices – develop niche segments in their brand that appeal to a younger demographic, focus continuing to serve the aging demographic by embodying traditional brand values, or try to do both.
Developing cultural niche is a necessity for footwear brands. This means creating a brand that speak to a certain style, attitude, aesthetic and value set. As mentioned in our previous blog, products must be versatile and have multi use characteristics.
Here is our list of up and coming nice brands
What this means for existing brands is the competition is not just coming from other existing brands but new ones which think differently. The market is indicating that consumers are falling in love with brands that they can call their own. Furthermore these new brands have a completely new mindset in terms how they design product, market and operate their business. How are you creating an authentic brand for your customers?