Iconic Brands – Will They Be Salvaged During a Recession and Will the Consumer be Duped?
I can’t help but wonder about the future effect on branded customer experience with the recent recessionary push to salvage well-known consumer brands. Are we moving back to the days where brands only stood for a name and logo? Or is this a new era in affirmation of the equity and intrinsic value of well-known brands?
A recent example is provided with the salvage sale of the bankrupt household retailer brand Linens ‘N Things. This brand name is being purchased following bankruptcy by liquidators Hilco and Gordon Brothers for $1million U.S with the rational:
“ There is significant brand value in the name and there is the potential to leverage and grow it.”
The plan is to make a profit by licensing out the Linens ‘N Things brand to other retailers however what is the long-term sustainability of the brand without a mechanism to proactively manage and deliver a consistent customer experience?
This may be the beginning of a trend toward brand denigration. Let’s see what happens. Are there any other examples that you have recently encountered?
