Daniel Edmundson, strategy director at Gretel, writes that the role of consumers in the retail process is quickly shifting and we've have now come to a moment when brands need people more than people need brands.
January 24, 2020 by Daniel Edmundson — Strategy Director, Gretel
We've long been told that the customer is king. Not only as a nod to the power of the consumers and communities we serve, but (hopefully) as a constant reminder that what we create is never just for us. Although the notion of insight-driven brand development is nothing new, the role of consumers in the process is quickly shifting. We've now come to a moment when brands need people more than people need brands. And while the customer is still indeed king, they have also become co-creator.
We're only just beginning to see this trend develop with players such as Nike By You leading the way. In the past, the act of customization had been one model for brands to give customers a sense of ownership, while the conversation is now moving on to the much larger idea of co-creation. The difference in the two is the relationship between the brand and the consumer. Customization feels entirely consumer-led with services rooted in modification and transaction — a very limited offering. To allow consumers to feel like they are sitting in the driver's seat with you, co-creation should feel bigger, fuel storytelling, culture and community, while allowing brands to support consumers on this journey and take the wheel occasionally.
Brands like LEGO and IKEA have co-creation at their core. They are constantly opening up and inviting dialogue and guidance. The “IKEA Effect” is a proven and highly researched consumer behavior: consumers value items that they assemble themselves more than items assembled by someone else. That's the genius of IKEA.
But recently we have seen consumer desire for co-creation gathering momentum. Some of the best co-creation brands feel as if they have been made by the people consuming them all along, even without an implicit co-creation initiative in the process. Brands like Glossier, Depop, Patagonia or Snapchat all feel like they have been created by the communities that love them, which is extremely powerful.
The authors and authorities on brand are bottom up, not top down. Efforts like Nike By You aim to empower and embolden people to take the first step to work with a brand and co-create. Evolving from customization to co-creation, Nike By You flattens the playing field for everyone collaborating with Nike, enabling them to feel seen, heard and included. Whether you are a professional like LeBron or a kid in East LA, Nike By You is designed to feel like it heightens collaborations at every level. The identity system itself reflects that balance: it's built of two equal layers so that Nike and each creator have something meaningful to add.
The first layer is Nike, a technical black and white layer representing Nike's expertise, including core elements of the Nike brand — the swoosh and Futura Extra Bold Condensed typeface — but placing them in context. The second layer is 'You' which features color, expression and personality, providing endless possibilities for iteration, suiting any product, consumer or high-profile collaboration. It positions Nike for a future where technology is increasingly making bespoke sportswear accessible to all, from pros to everyday athletes, and where consumers expect to be co-creating with the brands they love.
Nike By You is also the first of its kind. We knew Nike's audiences craved the chance to be heard and wanted creative input. Nike needed a pivot, not only in how it spoke about customized experiences, but also what the entire offering meant across the brand, inside and out. The launch of Nike By You helped it celebrate individuality, the value of being unique and standing out in the crowd. It re-orientates it around co-creation in a way that is recognizably Nike, so that it could stand out in Nike environments and flex across endless, unique applications.
If the goal is brand evolution toward co-creation, how do you get it right? Brands need to embrace natural consumer behaviors, not try to change them. Fans of Nike were already creating on behalf of the brand — Nike By You was simply a way to recognize and support them to facilitate them achieving this.
In the future the desire for co-creation will ultimately result in brands becoming more fluid. They will need to open up, become more flexible, hand the reins over to consumers and let them drive brand development. Brand systems and communications will also need to embody a sense of others and change from consumer to consumer.
Increasingly and more importantly, we are competing for people's time and a "brand" is often not the first thing that comes to mind. The competition is essentially anything and everything consumers are willing to dedicate their attention to and spend time with. For brands, this means being more adaptive within their surroundings to forge the most meaningful connections with consumers. It also means honoring customers as co-creators of the brand, not for them but with them.