Brian Richards: Weave a story, gain a premium

Then they'll reap the rewards of a premium price, says one of New Zealand's leading brand strategists, Brian Richards. The founder of brand agency Brian R Richards Ltd and recipient of DINZ's Outstanding Achievement Award in 2007 for his contribution to the design industry, Brian's been involved in the development of iconic New Zealand brands such as Cervena, Icebreaker, Orca, Fisher & Paykel, Design Mobel and regional identities for Southland, Central Otago and Marlborough. He despairs at talk of international branding meaning logos and says our identity, our sense of place and more recently sustainability play a significant part in positioning New Zealand brands

How have you seen branding change over the past decade?

Ten years ago branding was developed from the perspective of the inside looking out, not the outside looking in. What I mean is that many of our older companies did not and do not have good branding in terms of having a story that fits in relation to the rest of the world. Today our companies are much more contemporary, our people travel more, I've seen a change in that our branding comes from a much stronger global perspective. I've been privileged to work with companies like Icebreaker, Orca and Design Mobel who are all brands with strong stories, they have a position, they evoke emotion, and the way they talk about themselves makes sense whether you are you here in Auckland or the upwardly mobile in Austria - they are talking to everyone in the same way with the same story.

I've also seen a change from the design, or the aesthetic perspective - internationally design has become a global currency - with companies like IKEA taking it to the common man. So in terms of New Zealand's branding campaigns, good design and aesthetics and graphics have become more 'international'. And some of our companies are right up there with their ideas - there's been a growing maturity in design. We just need more of it.

You remind people about the importance of 'brands that pay': can you explain?

I like to talk about it in terms of good branding affecting your bottom line performance - in that done right, in your category you can earn a premium in your margin and price point as a result of your branding. I tell potential clients: we can affect your bottom line, I can prove it, and you will get a return on your capital. Coming from my background as an accountant, we've put together our version of EBITDA, which is "ROBI" - your return on branding investment. It's a benchmark measurement that can show you the gains you can expect to see. Other accountants may laugh because some of the measures aren't hard figures, like customer responses or impressions, but combined with the hard numbers, it makes a picture.

The accountant in me tells me that 'good will' is defined on the balance sheet as profit over years, etc, but it's not so easy to look at that term today and see it for strictly that. Consumer patronage connected to brand in today's world is a better measure of 'good will' from your customers and that's part of ROBI.

New Zealand relies on exports. What are your top tips for companies trying to develop an international brand?

The three most important universal ingredients are to have a clear point of difference, or at least the perception of difference; a supportive culture; and a story that's never been heard before.

Having a supportive culture not only means that everyone in the company knows the story and believes in it and can talk about it, but it means everyone downstream can too -all the way along the value chain to the end user. We talk about this as being an extended culture, where everyone has an attachment to your brand story, and they act as ambassadors out there for you.

And about storytelling: I think we've really lost the art of storytelling. For five years I was a board member of The New Zealand Film Commission. And I think looking at film scripts was very helpful to me in terms of learning to tell a story and using language, not just using visuals even though we are so visual today. Brands need these sorts of people working for them who are great at storytelling: it's an important skill to apply for all businesses. The world is desperate for a good story and if you want to be successful you need to be surprising, arresting, interesting. Branding should start with a cornerstone script, word or thought that follows through. And forget the superlatives - we're too quick to say we're the best, the first, the biggest - companies need to find an adjective which best describes their product or service which they can own

How important is the 'New Zealand' ingredient in our international brands?

It is important - but it depends on the product. Provenance is really the word today - your point of origin. But nationality is important and we need to dial it up or dial it down in terms of our particular product or service. Every product has a foreground personality and a backdrop. . Nationality content can play a part in in both these dimensions.

Perhaps what is more impressive about being New Zealand is our unbridled way of thinking, our intellectual sense. I think what's important is the 'new' in New Zealand. We have what I call 'raw sophistication'. It's not normal sophistication in terms of a white table, "poncy" waiters; it's wonderful food, the unpretentious setting, the high level of service, a dinner that's about laid back relaxation. It's raw, not a roughness, and I think particularly with the way the world is changing and the global issues that are coming up, that say, in the Northern Hemisphere at least, it's a story they will embrace.

In terms of these global issues, you see sustainability as an opportunity, where others still see an expense. How do you see the sustainability agenda moving in the next few years?

I don't think many people understand the meaning of sustainability yet. Most people's definition of sustainability is environmentally good practice but it's also the long term community impact, our life/work balance, it's about using renewable materials, companies' futures. It's not a fringe issue, it's mainstream, particularly on the other side of the world.

Fifty-three percent of the world is urbanizing in the next 10 years, and the further away from nature people get, the more they will pay for nature or for things that are good to nature because they are more conscious of what they are ruining. New Zealand's potential to gain a 'psychic premium' in this area is significant but we don't understand it yet. And there is a right way to gain a premium with sustainability and there is the wrong way - such as with tokenism, ie saying we are 100% pure when we're not, etc.

What does this mean for New Zealand companies?

They need to arrive at a definition of sustainability for themselves and to understand what it means. For many, it will be a way of gaining a premium in the marketplace - the opportunity for New Zealand companes is to define how they will make their sustainability plans convert into a premium and then commit to actually doing it.

Design intervention right at the start can do a lot for sustainability. Many designers don't appreciate their role in sustainability. The designer has responsibility for what goes in the trash can, so they play a pivotal role. The beauty of a product is not just its aesthetic but it is everything about its being.

And the world, in an urban sense, wants to know about sustainability. It will get us into the places where we want to be, for example in the food industry, into not just any old supermarket but into the US e.g. Wholefoods upscale supermarkets. And to get there, our stories have got to be good and true.

I believe we have an enormously promising future in positioning New Zealand products and services at a premium within a sustainable backdrop. At present we have a vote of confidence almost by default which we take for granted.

Making a real promise and delivering on it will renew our economy at the premium end worldwide.