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Hagel on Brands

July 31st, 2005 · No Comments

John Hagel writes:

We have witnessed a broad-based shift in brand power from product brands to retailer brands. Retailers like Wal-Mart, Tesco, Best Buy, Home Depot, Nordstroms and CompUSA have been steadily amassing brand power at the expense of more traditional product brands. Whats going on here?

Whats happening is that brand power is shifting with relative scarcity. In the first half of the 20th century, consistently high quality products were relatively scarce. Product brands prevailed. Over time, more and more products entered the market and shelf space became the scarce good. Power shifted to retailer brands.

Were now on the cusp of another major shift in brand power, driven in part by the growing role of the Internet as a shopping platform…As shelf space constraints evaporate, what becomes the scarce good?

It is something that is becoming ever more valuable our attention.

Also read Chris Anderson’s views.

Tags: Management

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