Disrupt or Be Disrupted: Why Staying Still is Not an Option for Established Brands
For established brands, maintaining market dominance isn’t just about staying true to your heritage. In today’s dynamic environment, blending tradition with innovation is the only way to stay competitive. Heritage brands often have the advantage of trust and recognition, but newer, more agile competitors are finding ways to capture market share by being faster and more adaptable.
What Can Data Do For You?
Data has become one of the most powerful assets for brands that want to stay ahead. But simply collecting it isn’t enough—you have to know how to use it effectively. Nike recently leaned heavily on its data to shift toward a digital-first strategy, moving away from its traditional retail partnerships. However, competitors like Adidas, and Hoka, took advantage of Nike’s reduced physical presence, and Nike saw a significant dip in market share as a result (source, source). This shows that while data is essential, it must complement the marketing strategies that built the brand in the first place.
Woolworths provides another example of how data can drive loyalty. Through its Everyday Rewards program, Woolworths has found a way to personalise offers and promotions based on individual shopping habits. The program has been a huge success, showing that even basic data collection and usage can result in deeper customer engagement and repeat business.
Why Personalisation Doesn’t Have to Be Complicated
When it comes to personalisation, many brands think they need sophisticated technology to offer a tailored customer experience. But some of the most effective personalisation strategies are built on simple, well-executed programs.
Spotify may be known for its hyper-personalisation algorithms, but Australian brands like Woolworths and JB Hi-Fi show that simpler solutions can also work wonders. JB Hi-Fi, for instance, has embraced personalisation through its email marketing, using customer preferences and purchase history to deliver relevant offers. Their approach has strengthened customer loyalty, even without cutting-edge personalisation tools.
Woolworths’ Everyday Rewards program is another example of a brand using data to deliver personalised deals. The strategy is effective because it focuses on what matters to customers — delivering value in ways that feel personal and relevant.
Agility: It’s Simpler Than You Think
Agility is often seen as a trait only newer companies can master. However, established brands are proving that they can pivot and respond to change just as quickly. One of the best examples is JB Hi-Fi. During the pandemic, they quickly launched their contactless click-and-collect system to keep serving customers while complying with lockdowns. By being agile, they not only stayed open but also capitalised on a significant shift in customer behaviour toward eCommerce.
Similarly, brands like Zara have built their business on agility, consistently releasing new product lines in response to fashion trends faster than competitors. While not every company can adopt the same model, the key takeaway is that agility isn’t just about speed; it’s about being ready to pivot when the market demands it.
Tech Trends: Proceed With Caution
Technology can be both a blessing and a curse. While embracing new tools can provide a competitive edge, it’s important to adopt technology strategically. IKEA has done this well, using AR to enhance the customer experience by allowing users to visualise how furniture will look in their homes (link). The key to IKEA’s success with AR isn’t just the technology itself but how it adds value to the shopping journey.
On the other hand, we’ve seen plenty of brands rush to adopt new technologies without fully understanding their impact. When it comes to implementing new tech, the question isn’t just "What can this technology do?" but "How does this fit into our broader customer experience?"
Your Story Still Matters—Creativity is Key
Heritage brands have an advantage in the form of strong brand equity, but that doesn’t mean they can sit still. Brands like Vegemite have managed to stay relevant by creatively evolving their story. The collaboration with Bega (link) allowed them to bring a fresh angle to their iconic product without alienating their core audience. By introducing new products while staying true to their roots, Vegemite has shown how heritage brands can maintain their relevance in a modern market.
This kind of creative evolution is essential for any established brand. It’s not about reinventing yourself completely but finding ways to stretch your brand identity so that it remains relevant to today’s consumers while still resonating with loyal customers.
What We’re Seeing
What we’ve discussed here mirrors the conversations we’ve been having with clients recently. Many of the brands we’re working with are facing similar challenges — balancing their established market position with the need to innovate and stay agile. The issues are common: understanding how to leverage data effectively, embracing personalisation without overcomplicating it, and adopting technology strategically. These are the very concerns keeping established brands from growing at the pace they need to, despite their strong market positions.
At Adored Brands, we’ve seen firsthand how these challenges can be overcome. Whether it’s helping brands refine their data strategies or advising on the best ways to adopt new technology, we’re working with clients to ensure they remain competitive in a rapidly changing market. The key takeaway? The fundamentals of what made your brand successful remain just as important as the new strategies you adopt to move forward.
