This Saturday, drug I had the privilege of photographing some of my favourite people from my favourite place in the world doing what they love to do. The event was the third annual Taste of Wellington West festival – when the food shops and restaurants of my neighbourhood in Ottawa give away free samples of thier food to benefit a local food bank. What could be better?
Here’s Israel’s own definition of this term from his Web site:
Shel Isreal:Lethal Generosity is the business strategy of doing as much good for your customer as possible, thereby screwing your competitor who has to either follow your lead or ignore programs that serve them.
Don’t you love that idea? Now, “lethal” and “screw your competitor” are hard-edged, cut-throat words. But they get your attention don’t they? In reality this is a “bad cop” way of describing a very “good cop” phenomenon. Because actually lethal generosity only works when you do it the way we do it in Wellington West: generosity comes first; lethality follows.
So here’s how I’d (humbly) alter Israel’s definition to put the emphasis on the strategic sequence of events:
Denvan:Lethal Generosity is 1) doing something warm, human, and generous that endears you deeply to your community, which 2) also has the pleasant side effect of giving you an incredible competitive advantage, 3) forcing others to either follow your lead or look really stupid.
Even though we had a blossoming arts community, many dozens of restaurants, our own outdoor farmer’s market, and the biggest cluster of owner-operated gourmet food shops this side of Montreal, other neighbourhoods were getting all the attention because they were organized, and were investing in building their brands.
What’s more, we were facing three years of heavy disruption from a massive and dirty construction project that would replace century-old sewer and water lines and make a wasteland of our street, and chase away customers.
So how do you compete with all that? Well, you build on your strengths. In our case, the incredibly warm and quirky characters who ran the shops and restaurants of our neighbourhood – who could always be counted on to give their time, money, and products to worthy local causes. But now they had a new weapon: a way to organize, mobilize, and capitalize on their native generosity to help them through a tough time.
The trick: to be more generous:
Generosity, in the form of Taste of Wellington West, has helped us to bring thousands of new customers into our area at a time when most would rather stay away. And it allows locals a risk-free way of trying new places and meeting the humans behind those shops. I particularly love the picture of the kids trying the sushi. It really captures the spirit of the day: passionate merchants sharing their passions with people.
But even more interesting, the merchants themselves have started to compete with each other to see who can out-generous whom. One high-end restaurant created waves by offering meal-sized Buffalo burgers, while another that had opted not to participate, had to reluctantly start giving stuff away. One of the employees told me: “everybody’s asking where the free stuff is. It’s just easier this way.”
1) The warmth: I’d call these people the salt of the earth, but “spice of the city” is closer to home. Don’t those smiles just make you want to move to my neighbourhood? 2) The energy: these are always hard-working people, but for one day they double their workload to make magic in the process. 3) The variety: from the high end restaurant to the tiny family groceteria, everyone brought something different (and yummy) to the table. 4) The food: my biggest regret is being on the wrong side of the camera again this year! I get hungry all over again looking at these.
But I’ll warn you, it’s a lot of information, and you’ll have to wade through some sections knee-deep in self-congratulatory hype. So as a public service, I’ve distilled 10 aspects of the list that jump out for me (below).
(But first, a slightly bitchy side note to Interbrand: guys, if you’re going to release these three days early, please 1) skip the giant countdown clock , and 2) actually send notices to people that signed up. Okay, my chest is clear, on to…)
10 Highlights of the 2009 Best Global Brands
1) Coke is still it: Top five brands are unchanged
The top five brands on the list are exactly the same brands in the same order as last year, and although Microsoft and GE lost more value than most brands ever have, with the spread in value between the top four, those mega-brands don’t look likely to change anytime soon.
Nokia’s brand is losing steam however, while gaining ground behind it is Google (in a big way) and McDonald’s (growing, but more modestly).
2) Google is the big disruptor
The Google brand shouldered ahead of Toyota, Intel, and Disney, and now is very close to overtaking McDonalds. As a matter of fact, its brand value has almost doubled since 2007, when it was 20th in the rankings.
Think about that for a moment: “Google” has grown from geek-niche-buzzword to #7 brand in the world in just 10 years – growth rates we haven’t seen since, well, Microsoft pulled the same trick for the ten-odd years before that.
But now that Google is starting to look more and more like a big, aggressive company (because they are), can their brand sustain its quirky garage-band appeal? Already their “don’t be evil” internal mantra is attracting more cynicism than praise. And while Googlers are still innovating, and making a lot of feel-good noise with their open source projects, one wonders when critical mass and inertia kick in (see Microsoft?).
3) Other big winners this year
By dollar value gained, H&M, Ikea, and Amazon gained a solid amount of value this year.
But apart from the indominatable Google, Apple grew the most, adding an incredible $1.7 Billion in brand value. Apple is the darling of the branding industry of course and a favourite of mine (see my Steve Jobs tribute), with its creative energy and focus on human-friendly products and messaging, so it’s heartening to see that doing it right by your customers still pays off during a recession.
4) Surprise! Financial institutions are the biggest losers
Have you heard about this recession thing? Well, if you have, then it should come as no surprise that the industry hardest hit in the brand value bottom line was the same industry that imploded and begged for (and received) massive government bailouts.
American Express, Morgan Stanley, and HSBC all lost billions of dollars of brand value, while Citi and embattled Swiss giant UBS both lost half of their brand value in one year. Several others dropped right off the list, including Merryl Lynch, AIG, and ING. Could it be a coincidence that many of these losers also have meaningless nomonyms for names (see my definition here)? Probably just a coincidence, but their names certainly didn’t help them.
5) Automobile brands: losing value
Also not surprising, every automotive or motorized equipment manufacturer on the list except Ferrari lost a significant amount of brand value this year. Harley Davidson and Lexus lost the largest percentages.
But despite losses, a few brands managed to hold their own or gain ground. Apart from Ferrari, Audi managed to gain, while Ford kept its ranking – the only one of the “Big Three” American manufacturers to have a substantial corporate brand seems to have benefited from its perceived stability as well. Another star: Hyundai:
Hyundai boosted ad spending and aggressively promoted its Assurance program, which allows buyers who lose their jobs to return cars. Hyundai’s brand value slipped 5%, but it moved up three places to No. 69. – Business Week.
6) Food and clothing: the basics still sell when times are bad
The same pattern held true for clothing brands – although it must be said that the list is incredibly top-heavy with luxury brands – so Gucci, not GAP; Rolex over Timex. I suspect that this is because of a) the weighting given to “brand premium”, that is, the amount consumers are willing to spend over and above competitors, and b) the fact that lower-priced clothing brands for us mere mortals tend to be less global.
7) Adobe: New kids on the branding block
Abode finally made the list after it “recorded record revenue and double-digit growth for the sixth consecutive year. They weren’t immune to the downturn (they lost money overall), but importantly from a brand perspective, they grew strongly in the consumer preference category. And their brand awareness continues to grow through the ubiquity of their consumer-facing products Flash, and the Acrobat / PDF line.
8 ) Brand USA – still the biggest brand builder
We were watching to see if the recession would dent the US dominance in global brands. With 52 brands on the 2o08 global 100, the Yanks are the uncontested branding champs, but those of us who were hoping for a moment of guilty schadenfreude were mostly disappointed that the US claims 51 – still a majority – of the 100.
Note to the rest of the planet: keep working.
9) No new countries
The names of countries in the Global branding club stayed exactly the same this year with only 9 brands coming from outside Europe and North America (Japan 7, Korea 2). Russia, China, India, Brazil, and the rest of the world have yet to break in. But of course, it’s only a matter of time.
10) Brand Canada: maintaining numbers, but losing ground
Both of our two Canadian contender brands Thomson Reuters and Blackberry grew this year, and both made gains in the rankings with Blackberry jumping 10 spots to number 63. But they weren’t joined by any other brands, and what’s worse, we slipped a rank in number of brands-per-capita when the UK added a brand and vaulted ahead of us. On that list, we were 10th; now we’re llth.