Established brands are the most valuable assets

Established brands are the most valuable assets

Burhanuddin Abe, Contributor, Jakarta

For certain people, like executives, artists, celebrities or
successful people -- or those who want to look successful --
appearance is highly crucial. One person who also believes this
is Aditya Indrajaya, an executive of a company dealing in
architecture, interior design and management consultancy.

"For me appearance is one of the most important personal assets,"
he said.

He agreed that to appear stylish does not necessarily mean
that one has to wear clothes with recognized brands. However, the
branded products do emanate a unique difference, although
sometimes the difference is often abstract or purely emotional.

He admitted, though, that his clothes carry all the
internationally acclaimed labels like Alfred Dunhill, Christian
Dior, Celline, Versace, Hugo Boss, Armani and the rest. Likewise,
his accessories, such as wallet and tie.

Aditya, also the owner of Odiseus Health Club & Spa located in
several star-rated hotels in the city, is not alone in the way he
thinks. A number of other local executives have a similar mind-
set. Most agree that brand-name clothes and accessories as well
as frequenting popular places, like cafes and restaurants,
reflect one's personality and esteem. Such things also represent
one's position or level of success. The cheaper lookalikes are to
be kept at a long and safe distance, they often quip.

Judging a man by his looks is like judging a book by its
cover. It is not always wrong to judge someone by his or her
looks, but as appearances often deceive, it is not wise to use
this superficial method as a parameter of evaluation, in the real
sense, that is. However, on many occasions, especially where one
has to reflect a certain image, then appearances play an
important role. The clothes you wear become more than something
that handsomely or beautifully cover you up, but they deliver a
certain message, one that embodies certain values.

Naturally, another return for the brand owners is the huge
profits that successful brands consistently bring in. This is the
result of long years of arduous work by the marketers in
nurturing their brands through effective advertising and public
relations, or in the advertising jargon, grabbing maximum mind-
share.

Today, in an era when high quality is often taken for granted,
popular brands then are what separate by giving added value.
Consequently, consumers do not mind paying extra for these
abstract values. Paraphrasing what marketing expert Kent Wertime
wrote in his bestseller Building Brands and Believers a brand and
its role in making profits is becoming more recognized in the
current "image economy" era.

Not only reputable designers, like Christian Dior or Jean Paul
Gaultier, are aware of the importance of a good name, but
manufacturers of other product categories have long emphasized
its vital role, for example Kodak, Levi's, General Electric or
Mercedes-Benz, just to name a few. Some of the world's most
successful consumer companies have been outlived by their
creators, founders and owners.

Though Indonesian marketers have for some years now realized
the importance of investing in a brand, in many business areas,
the established international names still dominate the domestic
market. This is understandable based on the stronger roots of the
world brands along with years of marketing experience. Also, the
"foreign mindset" of many locals, or belief that Western products
are ultra-modern, may be another reason behind their success
here.

A simple recall test of brands of soft drinks or fast food
outlets will result in answers like "Coca-Cola" and "McDonald's".
Their ubiquitous presence is evidence of successful branding that
knows no boundaries or borders. Based on such success stories and
many others, who would refute the fact that the brand name itself
has really turned into an invaluable asset of the intangible
kind. For local business players, there is a rich lesson here if
domestic enterprises intend to be more prosperous.