Address

Suite 2, Level 5, 162 Goulburn StreetSurry Hills NSW 2010, Australia

Phone + Email

+61 2 8094 6800info@rubychacha.com.au rubychacha.com.au

How consumers are driving the shift toward Microbrands

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A microbrand is a small-scale brand you can only buy in certain ways or places, playing to a niche market.

Every big brand started as a Micro brand

Death by a thousand cuts

*Reference: The Rise of Microbrands – iiex 2019 Austin

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... all new brands need to build mental availability to push to the front of consumer’s minds

1.Symbols

2.Packaging

3.Scarcity

4.Assignedmeaning

5.Rituals

and Form

6.Essence

7.Endorsement

Creating a sense of worth through consumer psychology

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The new brand paradigm

Consumers care less about existing brands and more about what their influencers and other consumers say about brands...

Rank and reviews matter more than a logo and a snappy catchphrase

A great customer experience means free shipping almost next day

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Consumers think differently about

Microbrands• Small is good, big is bad• Equals – we are both small• Care – they care about me, not big

profits• Discovery – strong discovery

element feeds into needs for status and achievement but also other needs like control and freedom

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Microbrands in the CPG business: will the microbrands of today become the household names of tomorrow? – Sophie Pike, PHD Global Business

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Global brands are stagnating while microbrands are the CPG growth engine

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The dynamics of a brand’s success are changing in favour of microbrands

Success in a traditional brand world

Scale & VolumeConsumer familiarity

Brand equityStandardised distribution channels

Cost efficiencyProfitability per unit

Success in a mircobrandworldInnovation

Speed to marketPersonalisation of the product/experience

AuthenticityCustomer lifetime valueProfitability per customer

Value innovation

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Making microbrands possible

Microbrands can conceive, test and execute at pace:• Limited need for start up capital• Lower overhead• Little to no inventory risk• Efficient customer acquisition with hyper-targeted advertising• Ability to iterate design quickly and effectively

So what does this all mean for your business...?

What is your USP?

Voice of the consumer: what

are you NOT giving them?

Price is not the driver, even if they

do want free shipping – its

about the value add

What are your small brand

growth opportunities?

You must drive ‘value innovation’ not product and service innovation

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How to get ahead of microbrands – or make them your friend

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Leverage the value of your physical presenceEmbrace the platform revolution to drive customer centricityUse private labels as a differentiator – make these your microbrands

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Be disruptive. If you follow, you will get left behind.Be open to the ‘Uberization’ of fleets, warehouse space and platforms.Embrace and explore intelligent automation