These sneakers represent the many levels at which mega-brands today face unprecedented pressure. We're building on a long tradition of industrial-strength research at Bernstein, from dismantling Chinese cars to building Indian electric bikes.
In this project, we set out to answer this one question.
Across almost every consumer category, the biggest brands are losing share to more nimble, niche challengers. Idiosyncratic and macroeconomic explanations — health & wellness, tech, and consumer sentiment — by category are compelling. However, in aggregate, we argue something broader is going on.
The very sources of the mega-brands' growth — lowered costs, disrupted distribution and marketing, and accelerated product cycles now favor smaller, niche producers.
We launched BERN TO RUN to explore lower barriers to entry. In less than four months, we went from mood board to specification, prototype, and finally to finished product. Legacy brands cannot compete with speed-to-market and address every niche. Small brands can access quality production at scale.
In this episode, host Patrick Robinson is joined by European Retail Analyst Will Woods to explore “the death of the billion-dollar brand”. They discuss how globalisation, digitalisation and the rise of a middle class helped mega brands dominate, but have now become some of their biggest challenges as consumers move towards more fragmented, niche and targeted products. Will explores the rise of challenger brands, changing consumer demographics, faster product cycles and the growing importance of agility, before revealing how Bernstein put its own research into practice by designing and producing a limited-edition sneaker in just four months.
