The Buyer | What to learn from Interbrand’s Breakthrough Brands

Interbrand’s new 2023 Breakthrough Brands report reveals a whole new set of brands, products, services and apps that are using everyone from the metaverse to artificial intelligence to disrupt our understanding of what brands can do and stand for and are shaping future consumer behaviour. This a US-based report but many of the brands included are available in multiple markets around the word.

What are you talking about. Are we really going to see supermarkets stop presenting products and brands by the categories they belong in – and rely on these new so-called Arenas?

Good to see you have an open minded approach to this. No we are not going to see ‘Arenas’-based aisles down the local supermarket any time soon, but that does not mean they don’t already exist. These are products, apps and technology-based tools and services that don’t need to be sold in a traditional store, but, according to Interbrand, are already starting to dictate and change our shopping behaviour.

Brands that appeal to our core human needs and are part of the cultural shifts taking place in society. Brands – or services – that no longer fit into just one category or industry.

It all sounds very confusing to me?

You’re right. It does. But bear with me. This is not Interbrand’s first rodeo. It has been producing similar reports for years and specialises in analysing all areas of retailing and consumer spending to see what patterns and trends are emerging – they might physically be a long way from the world of wine and spirits, but they are influencing and changing the behaviour of the same consumers using them.

It’s a case of thinking less about traditional mega brands like Coca-Cola and Kellogg’s, but more the impact social media platforms like Tik Tok and new AI tools like ChatGPT are having on us not just as consumers, but how it impacts our business lives. Similar to the cultural impact smartphones and the iPhone has had on how we live our lives.

It has picked out 30 of what it calls Breakthrough Brands – the first 12 of which it is brave enough to predict are “making iconic moves to become the next generation of legacy brands”.

It has also identified an additional 18 brands which it believes represent the emerging trends across evolving beauty and wellness, merging sustainability and style, shaping new tastes around food, and brands that are bringing a next-gen approach.

So go on then what are these new so-called legacy brands of the future?

There’s been an awful lot of chat about ChatGPT

Well first on the list is a technology platform OpenAI, the brains behind ChatGPT, which has set out a target “to ensure artificial general intelligence – AI systems that are generally smarter than humans – benefits all of humanity”.So it’s all a bit different to launching a new version of Coca-Cola.

AI is also behind Neko Health a body scanning health technology business started by the co-founder of Spotify, Betterhalf, which claims to be the fastest-growing matrimony app.

Next up is Zepeto, Asia’s largest avatar-based metaverse platform that is said to be the next big thing in gaming. Then we move into lifestyle changing apps and technology like Eight Sleep which claims to be a “pioneer of smart sleep” that use temperature controlled pods by your bed to make sure you get a good night’s sleep.

Other breakthrough brands include those that are looking to help drive the shift to electric transport with CAKE – fast growing high-performance electric motorbike brand – and HiPhi a new pemium electric car brand.

Corona worked with Obsess to create its own virtual store

Drinks brands are indirectly featured in the report as being one of the successful routes to market for Obsess that helps to create fully immersive e-commerce shop platforms for a whole range of brands from Corona to Armani and claims shoppers spend 10 times more on its sites than traditional retail websites.

Don’t worry it’s not all AI, tech and gadgets. Seventh in the list is Fishwife – a female-owned, ethically-sourced tinned seafood brand that hopes to give John West a run for its money. Or Crumbl Cookies that was set up to make the prefect cookie.

On the high street there is new coffee brand Blank Streetthat started as a coffee cart in the garden of a Brooklyn diner and now has outlets in London. It’s mission is simple but with a clear purpose: “We’re striving to make each daily coffee ritual, that little bit better.”

Then there is Taleafounded by two women who wanted to share their love for craft beer in friendly taproom environments that spoke to customers like themselvesand ‘non-beer bros’.

So more of those purpose-driven brands that we keep hearing about?

I am afraid so. It seems if you don’t have a purpose, you don’t have a brand. At least if you want to be deemed a “Breakthrough” brand. But it’s not the only way to catch the consumer’s eye.

Interbrand has broken its list of Breakthrough Brands into three key trends. It says:

CAKE is an example of a “purpose driven” brand looking to shake up a traditional category such as motor bikes

Brands have sharper identities: Brands need to know who they are and have a clear stance on their purpose. Brands including Fishwife and CAKE have maintained a clear set of convictions and beliefs from the outset to create a strong brand.
Brands are looking to engage with customers in the new world of AI and the metaverse: Brands such as Obsess and Zepeto are experimenting with new and exciting ways to connect with consumers online. Interbrand’s research with Vox Media found that when an AI tool is paired with a specific objective, such as eating well, interest increases dramatically.
Brands are working in new ways to differentiate themselves in a crowded market: The world has become overpopulated with brands, making it difficult to break through. To become a differentiator in a saturated market, brands need to bring something new to the table. Brands such as OpenAI and Eight Sleep are providing consumers with offerings that reshape the way we live.

Daniel Binns, global chief growth officer and chief executive of Interbrand New York, said: “This year’s analysis of brands represents what’s happening in society and culture today. Most industries are becoming crowded, with a multitude of brands providing similar things. Brands making bold moves to stand out have the best chance of being successful.”

OK fair enough but what criteria is it using to classify a brand as ‘breakthrough’?

Good question. It claims to have chosen its short list of brands based on the following criteria:

It was founded or launched within last seven years.
Is revenue-generating in its respective marketplace.
It is not a spin-off of an existing brand.
It exemplifies one or more of Interbrand’s brand growth tenets: “built on a human truth; creates an exceptional brand experience; and delivers superior economics.”