Why brand repositioning is hard

08 July 2019

Middle-tier brands are therefore the most likely to reposition, acquire competitors to gain scale in an attempt to become the reference point for their category, or fail when they get it wrong. If you can’t succeed in being a reference point brand, you have a choice of ‘moving down’ and competing mainly on price, or ‘moving up’ and finding new ways to distinguish the brand that commands a premium the consumer is prepared to pay.

‘Moving up’ isn’t easy. Historically, successful luxury brands have struck a sensible balance between exclusivity and accessibility but luxury brands too were slow to adopt digital media and online sales and have now had to rush to adapt to new consumer shopping habits.