Welcome to Agile District

The Future of Branding is De-branding

As digital media is losing its impact of advertising brands are looking for new ways to win over people. Previously, companies were using every conventional & traditional mean to establish their brand. Now,  they are using fascinating and imaginary words to promote their brand as well as communicate with the potential customers. This originally delivers zero value to customers. Therefore, instead of hiding their true colors, businesses need to do the rebranding. Companies are trying their best to publish stories which give a journalistic feel or look. The key reason behind this is to appear less corporate and more personal to audiences. So, that, the prospective customer thinks that they are consuming a familiar product, which gives them satisfaction in less price.  Added, making a brand more reliable, familiar and indispensable for consumers. However, it is a sham and a short-sighted attempt to trick prospective customers into opening their wallets. Hence, companies need to put product first, not a brand.

What is De-branding?

De-branding means a company with a top-notch brand opts to appear more generic brand. So, that, the 
brand appears reliable and familiar to potential customers.

A Glimpse into De-branding History

According to a Journal of Business Strategy, American consumers have started their transition from 
brands towards more affordable generic brand in the early 1980s. This shift has occurred across a wide 
range of household products or services. Within no time, generic brands have started capturing a huge 
slice of market revenue share. This poses a great threat for the brands. As, generic brands are taking up a 
significant revenue portion without spending hefty amounts on marketing, and establishing an elite 
brand. On top of that, their significant market share comes to the surface when the overall sales in USA 
have been declining. Hence, with no signs of slowing down their increasing growth has become an 
imminent threat to major brands existing in the market at that time. 

Psychological Reasons for De-branding  

The psychological reason behind de-branding on the part of significant brands is to appear less corporate 
and more forward thinking. Brands have started playing with the basic human psyche. Customers 
preferred the generic brand over an elite brand due to the following reason. According to a Pew 
research, almost 93% of customers are satisfied with the use of generic brands. Also, 86% are committed 
to continuing their generic brand. Furthermore, evidence has suggested that consumers viewed the 
quality of generic products quite satisfying. This whole situation poses a significant threat to the brand’s 
market share.  
To overcome this situation, brands have started de-branding their selves to appear as a more familiar 
product to the potential consumers. Let’s suppose, a product is produced by brand X, however, its 
generic brand is available in the market. The consumer attraction lures towards the generic brand. Since 
the perceived quality is similar with an added benefit of lower price. This shows that consumers are no 
longer willing to pay for the expensive branding campaigns wrapped in the price of a branded product.  
A case in point is Starbucks Coffee. They have opted to remove their name from the logo, and leave the 
center image for display only. The reason behind this is to appear more like a local coffee shop as well as 
less corporate. Another similar case is Coca-Cola debuted under the banner of “Share a Coke” and 
replacing its logo with 150 given names.

A De-branded Future

De-branding of the product is the future of branding. Customers are more prone towards generic 
products as they are receiving the similar value at a low price. A consumer realizes the real value of the 
product or services. Added, instead of brands, real tones of voices are the interface between consumer 
and products. Companies are using various technological & digital services for optimizing their content 
and market that content towards the prospective customers via multiple digital mediums. Further, 
creating awareness among the potential customer’s regarding products.    
In the technological innovative world, consumers are comfortable with everything being interconnected. 
Now, consumers are not after exaggerating brands which sets apart audiences from each other. Rather, 
they are interested in brands which bring people together. Precisely, customer needs fewer 
better-quality products at a suitable price. They are no more interested in paying hefty amounts on the 
name of elite brands which is providing zero value to customers.


Bottom line is debranding is the future of branding. Customers are attracted towards generic products 
more than brands. Generic brands are successful in providing satisfaction to customers, which branded 
products are failed to provide. 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top