Business Case for Brand Transformation
The biggest challenge in a major brand transformation is not the actual work but the business case.
There is a significant time gap from when you start developing a new brand strategy to when you have built the brand differentiation needed to serve as a solid foundation for accelerating the company's growth.
“Fame Before Fortune” is the phrase I use to help business leaders understand the business case for brand transformation.
You need to make the brand famous before you can reap the business rewards.
Here’s a brief overview of some necessary investments in brand transformation:
- Strategic process with the leadership team followed by communication to the organization
- Development and implementation of a new visual and rhetorical identity
- Product, culture, and organizational development that supports the brand’s differentiation and promise to customers
- Market activation of the brand in a way that can generate attention, clarity, and credibility around the brand’s advantages, in addition to winning over fans who can act as brand ambassadors
All of this can take some time.
If a business leader could get a guarantee of double-digit growth by investing 50% of profits over the next two fiscal years in the above activities, brand transformation would be a no-brainer.
Unfortunately.
Building a strong and profitable brand is a demanding process with many pitfalls.
If those leading the brand transformation are not creative, brave, and integrative thinkers, you can easily end up with a brand that is merely polished on the surface, but not magical or deeply convincing enough to attract new customers.
Timeline for Ganni’s Brand Transformation
I’ve been fortunate enough to get an up-close look at the fashion brand Ganni. When my wife visited them for work, I took the opportunity to tag along and find out the secret behind their remarkable business success.
Today, Ganni is approaching 1 billion DKK in revenue and, as the first Danish "high-end fashion brand," has managed to break through internationally.
I’ve attempted to reconstruct Ganni’s timeline for their brand transformation, focusing on investments in building their unique brand and the commercial payoff.
Fase 1: 2009 - 2015
From invisible to a bubbling brand
Investment in brand transformation
- Unique designs: "Copenhagen Girl" style
- Use of local influencers
Capitalization on brand transformation
- Revenue: Estimated modest growth from ~DKK 20 million (2009) to ~DKK 35 million (2015)
- Fame factor: Primarily limited to Denmark with a small international following
Fase 2: 2016-2018
Trending on an international level
Investment in brand transformation
The hashtag #GanniGirls, popularized by Helena Christensen and Kate Bosworth, accelerated Ganni's Instagram following.
Simultaneously, Ganni invested in:
- Strengthening their social media presence and building a global online community through #GanniGirls.
- Expanding the product line to appeal to a broader audience while preserving the Copenhagen Girl style.
Capitalization on brand transformation
- Revenue: Significant growth from ~DKK 35 million (2015) to ~DKK 250 million in 2018.
- Fame factor: Ganni began shifting from a niche brand to a recognized name in the fashion world.
Fase 3: 2019-2023
The international breakthrough
Investment in brand transformation
- Opening flagship stores in major cities like New York and LA, as well as pop-ups in high-profile locations.
- Leading in responsibility and sustainability
- Launching collaborations with internationally recognized brands
Capitalization on brand transformation
- Revenue: Growth from ~DKK 250 million (2018) to approximately DKK 750 million in 2023
- Fame factor: Ganni is now an iconic brand synonymous with "Scandi cool" style worldwide.
There may be details I’ve missed in the above description.
However, the significant time gap between the brand investment (FAME) and the financial payoff (FORTUNE) is quite clear in Ganni's case.
Whether you are a small or large business, you can create the brand differentiation that can accelerate your company’s growth.
