Especially in times of economic turbulence, companies need to be even more innovative. But competition has shifted from product innovations and functional benefits to cultural innovations and symbolic benefits. About two-thirds of consumers want companies to stand up for social or environmental issues they also feel passionate about (Accenture 2018). Conscientious consumers may buy or boycott a brand because of its social or political stance. Along with this trend, a growing number of companies engage in Brand Activism, to drive social, political, or environmental change. This explains why everyone seems to be talking about purpose today, along with CSR, sustainability, eco, and ethical branding. Purpose-driven branding is probably one of the key business success drivers today – but it comes with some substantial risks and challenges.
The Brand Purpose is part of the overall company objectives, which are known to be closely related to company success. Shang Xia, a Chinese high-end lifestyle brand owned by Hermès, recently celebrated its ten-year anniversary in Beijing. At this occasion, one of the authors of this article interviewed Mrs. Qionger Jiang, the head of Shang Xia and Mr. Patrick Thomas, the president of Hermès at the time when the brand was launched. The goal of the interview was to ask them to look back at the last ten years and think about the key factors that made Shang Xia successful. Mr. Thomas replied that the ultimate success factor is to have a clear Brand (Heine 2020). The Brand Vision inspires and motivates entrepreneurs and staff to keep going and attracts like-minded customers to the brand. Mrs. Jiang further explained that all senior managers must share exactly the same vision. And as this was the case at Shang Xia, there were never any serious disputes about the strategic direction of the brand between Mrs. Jiang and Mr. Thomas.
