Branding remains vital despite trying times

Saturday April 11, 2009
Branding remains vital despite trying times
By RACHAEL KAM


THERE is a perception, especially among small and medium enterprises (SMEs), that branding is a game only for the “big boys”, but “this is a very wrong thinking,” says Lewre Lew, president of the Branding Association of Malaysia.

“Yes, a branding exercise can cost a lot of money but it also can cost very little,” he says. “One can even start branding with a small investment like with a uniquely-designed name card.”

The philosophy of branding is to make a company’s product or service stand out and be recognised by people, and to achieve that, positioning is very important, Lew explains.

One must have a clear idea of the company’s direction and know its customers well, he adds.


Lewre Lew ... branding is for long term
“It is all about what (business) you do, what is your product, what kind of service you are providing and what is so good and different about your company and product compared with others.

“It actually relates to product differentiation, the company’s culture and belief, and even the story about the company and its founder,” Lew tells StarBizWeek in an interview.

He notes that local manufacturers in places like Penang, Kuala Lumpur, Seremban and Johor produce world-class products.

However, the association is disappointed that many such SMEs have failed to capitalise on that advantage to build their brands.

“It is the mindset of people. Some companies have big operations but no brands, but some small companies have very loud brands,” he says.

Hence, the Branding Association of Malaysia is trying to educate SMEs on the importance of brand building.

“If everyone has this mindset and start branding their products or services, I am sure we will have a lot of emerging top brands in the world in the next 10 to 20 years,” Lew reckons, citing Coca-Cola and McDonald’s which started their branding work when they were still small companies.

“Branding is long-term investment. You don’t see the results immediately,” he says, adding that if a company has a good product, it should protect it by registering the product and brand it.

Lew speaks from experience, having the foresight to brand the Lewre shoes produced by his company Lewre International Sdn Bhd.

“I never thought of branding when I started the business. But later I realised that one day, if I don’t brand my products, they will disappear from the world or other players could take my designs,” he explains.

Lew believes that “it is a good time to do branding during the downturn because there are less activities and less competition in the marketplace.”

“When the market is quiet, you can make something unique with quality, then people will remember you,” he adds.

Lew says while companies tend to be more prudent in their spending during an economic slowdown, they will need to work extra hard to create better and more unique products.

“Consumers will buy less during the tough time but they will be more selective and buy unique stuff that offers value for money.

“So, uniqueness and innovation are the ingredients to make a company’s products and services more outstanding and gain more trust from consumers. That is how a brand stays in people’s mind,” he says.

The Branding Association of Malaysia believes that more Government support such as incentives, grants and industry expertise are needed to help SMEs develop their brands.

He adds that with the support from the Government, more successful local brands will be created.

“Because if we do not go out to the world, the world (foreign brands) will come to us and capture our local market,” he warns.

The association has been talking to the Government about having a local brand awards event.