Hyperquake Blog

More and more “boutique” brands are gaining prominence on store shelves, and it hasn’t gone unnoticed by the major brands that dominate those aisles. In some cases, the packaged goods giants move to squash their lesser-funded competition, but in other cases, they simply acquire these brands outright. We know some of the higher profile acquisitions like Burt’s Bees, Naked Juice and Iams, but there are a long list of other brands quietly being acquired, many unbeknownst to their avid fan base. On one level you can say these acquisitions are simply a low-risk way for mega marketers to buy into a market or a consumer they haven’t cracked yet. You could also say they are just protecting their turf. And you would be right on both counts.

But on another level, bringing smaller, specialty brands into a large organization can provide a far more valuable benefit: they infuse much needed new thinking and an entrepreneurial spirit into the organization. They can also bring the kind of quick and gutsy decision-making that smaller brands thrive on.

Unlike their massive counterparts, these smaller brands seemingly have less to lose and therefore make decisions quickly, even if not fully proven out. This makes them fail more often, but also succeed more substantially. As these brands begin to steal segments of the market, large marketers are realizing the need to adopt a more progressive approach to building, not just maintaining, brands.

It’s important to recognize that this kind of success doesn’t have to come from an acquisition. In fact it shouldn’t. It circumvents much of the in-house talent, thinking and risk-taking that can breathe new life into an organization. This start-up mentality can be cultivated with brands that already exist within the four walls of large corporations. But before we talk about how, it’s important to recognize what has made some of these brands breakouts in the first place.

It’s often assumed that what makes boutique brands successful is the less structured, more freewheeling nature of their leadership. And while this is true to some degree, it’s a serious oversimplification. There are solid fundamentals that the most successful of these brands follow:

They do not set out to conquer the masses, they focused on the unmet needs of a specific type of consumer. Generally consumers with specialized interests or unique needs, consumers who has been overlooked by mass brands.

They focus entirely on meeting this consumers needs. In every way, from the way the company is run to the way products are manufactured and distributed, these brands are all about leading and inspiring their followers. They focus on a single idea and a single audience and constantly evolve what they do best. They aren’t afraid to go with their gut. Keep in mind that when a team has the ability to focus their energies entirely on a specific audience or unique unmet need, they are surrounded by inspiration and insights. Consumer frustrations, aspirations, desires come bubbling to the surface. This is a raw space that brings in many new and inspired ideas.

So how can this “boutique” mentality be cultivated within a larger organization? Consider that most large marketers have a stable of lesser known brands that get little marketing or R&D support. Typically, these brands have a small, loyal following, but are seen to have little upside. And with a traditional marketing approach, that would be entirely true. But their size makes them ripe with opportunities to attack unique pieces of the market. With a razor focus on an influential consumer segment or an emerging trend or lifestyle need, they can adopt the boutique mentality and innovate new ways to serve an emerging market.

Yes, there are risks involved, but the risk is compartmentalized into smaller, less business-critical brands. This can be a lab for new kinds of consumer understanding, greater relevance to emerging markets, product innovation, marketing innovation, and yes, risk-taking and entrepreneurial spirit. Just imagine how this kind of boutique focus can have a ripple effect across an entire organization, providing training for how to develop new products, re-establish tired brands and ultimately, become a catalyst for applying new thinking across all brands.