In the rapidly growing landscape of e-commerce, many businesses have swiftly entered this market with the primary goal of generating quick revenue. However, this "short-term" approach, focusing on immediate strategies to attract customers and boost sales, lacks a crucial foundational element: branding. Building a strong brand not only enhances competitive edge but also ensures sustainable growth for the business.
The Reality of "Short-Term Gains" in E-Commerce Business
Many e-commerce businesses today focus on aggressive advertising strategies, attractive promotions, and shocking discounts to attract customers in the short term. This can help them achieve impressive initial sales figures. However, these strategies are often unsustainable and can lead to negative consequences such as:
Dependence on high advertising costs
Businesses use paid advertising (PPC) such as Google Ads, Facebook Ads, or advertisements on e-commerce platforms to quickly increase traffic and sales. While this strategy yields immediate results, it also comes with high costs. When a business stops or reduces its advertising budget, sales can plummet as traffic is no longer sustained.
For example, a store on TikTok Shop spends a significant amount on advertising to attract many customers and boost sales. However, when the advertising budget is reduced, traffic and sales drop immediately because the store has not built a loyal customer base or sustainable brand recognition.
Non-loyal customers
Promotions and shocking discounts can attract a large number of customers in a short time, but these customers often only make purchases during sales. This results in non-loyal customers who do not develop a long-term connection with the brand.
For example, a store on Shopee frequently holds major discount programs during holidays and events. Customers only come to shop during these promotions, but when prices return to normal, they do not return, making it difficult for the business to maintain stable sales.
Diminishing brand and product value
Continuous discounting can lead customers to undervalue the true worth of a product or service. When customers become accustomed to purchasing at reduced prices, they tend to wait for the next promotion rather than buying at regular prices. This not only reduces the company's profit margins but also diminishes the brand's value in the eyes of customers.
The importance of branding for sustainable e-commerce business success
Building a strong brand is a key factor in enhancing competitiveness and maintaining sustainable growth in e-commerce. A strong brand offers several important benefits to a business, such as:
- Building customer trust: Customers feel more confident purchasing products from a brand that is well-established in the market. For example, Apple is a renowned brand known for high-quality products, so consumers are willing to pay more for Apple's products compared to other brands.
- Increasing brand recognition: A strong brand helps a business to be easily recognized and remembered by customers. For instance, when thinking of athletic shoes, many people will immediately think of Nike or Adidas, thanks to these companies' robust branding strategies.
- Enhancing product value: Customers are willing to pay a higher price for products from brands they trust. A Nielsen study shows that 59% of consumers prefer to buy new products from familiar brands rather than trying products from new brands.
How to build and develop a brand to enhance competitiveness in e-commerce?
Building a brand is essential for any business, regardless of the platform on which it operates. It is a key factor that helps a business become the preferred choice for customers. A strong brand not only enhances competitiveness but also ensures effectiveness in multi-channel business and marketing activities. To achieve this, a business should focus on the following elements:
Define and build your Brand DNA
Brand DNA is the core of a brand, encompassing the values, mission, and unique characteristics that the brand aims to convey to its customers. Defining Brand DNA helps a business clearly shape its brand identity and differentiate itself from competitors.
Steps to define Brand DNA:
- Identify core values: Determine the principles and values that the business wants to pursue and communicate.
- Position the brand: Establish the brand’s position in the market and in the minds of customers.
- Build the brand story: Create an engaging and consistent narrative to connect with customers.
Strengthen multi-channel brand communication
To develop a store on e-commerce platforms like Shopee, TikTok Shop, Lazada, and Tiki, businesses need to enhance multi-channel brand communication. This approach not only boosts brand recognition but also creates consistency in brand messaging and imagery across all channels. Combining social media platforms, email marketing, websites, and online advertising campaigns will help businesses reach more potential customers, build trust, and drive sales on e-commerce platforms. Multi-channel communication also makes it easier for customers to access information about products and services, enhancing the professionalism and credibility of the brand.
Ensure consistency across all channels
Ensuring consistency in brand identity and messaging across all channels is crucial for maintaining brand recognition and building customer trust. Every element, from logos and colors to typography and brand messaging, needs to be used consistently across all communication channels such as e-commerce platforms, social media, websites, and product packaging. This consistency helps customers easily recognize the brand, creates a sense of professionalism and reliability, and increases the likelihood of customers returning and remaining loyal.
Additionally, brand information, product details, and promotional programs must also be uniform.
Always clarify your differentiators from competitors
To build a strong brand and compete effectively on e-commerce platforms, businesses need to understand their strengths and weaknesses. This helps them clearly identify their competitive advantages and highlight differences from competitors. Differentiation can be in how the business positions its brand, its brand identity and messaging, brand commitments, product lines, customer service, or the professionalism of the store on the platform.
Currently, buyers have countless choices for the same item when browsing e-commerce platforms. Always ensure that customers clearly see your unique advantages to become their preferred choice.
Conclusion
Achieving quick revenue is certainly a goal for any business, whether operating on e-commerce platforms or elsewhere. However, to achieve sustainable growth and build a long-lasting relationship with a loyal customer base, businesses should not overlook the process of brand building. Creating a strong brand is a long-term endeavor that requires a systematic, meticulous approach, clear strategy, and significant patience. In return, this will earn the trust, love, and support of customers for the brand and its products, ultimately contributing to enhanced business and marketing efforts and driving long-term revenue growth.
