Penny Paradox: Brand Edition 💰

Penned by Sanjeevni Lal

Ever wondered why some brands go from Hero to Zero? 
I talked about how we, as consumers, sometimes fall for the allure of cheap products, only to end up spending more in the long run.

But guess what?
Even those big, shiny corporate giants fall for this trap too. 
Yes really, they’re not immune to the paradox either!

We all know of brands that build a solid reputation by creating top-notch products that everyone loves.  Business is booming, and everything is peachy. But then, a little devil on their shoulder whispers, “Why not save a few bucks on materials? No one will notice!” 

So they cut a corner here, skimp on quality there, maybe even sidestep some labor laws, and voilà! They’ve turned a great product into something… well, disappointing. 

Ironically, while they were busy pinching pennies on production, they were pouring millions into marketing. They launched flashy campaigns, hired influencers, and rolled out ads that made their products look like the best thing since sliced bread. 

But if the bread is stale, no amount of marketing is going to make it taste fresh…
This is not only ironic; it’s downright counterproductive.  Brands are under the pressure of bean counters and increasing profits, so they try to cut costs in whatever way possible, but in reality, they’re undermining the very thing that made them successful in the first place: their product or service quality.

What happens next? 
Every Brand’s worst nightmare.
The customers who once trusted the brand start noticing that their favorite products aren’t what they used to be. The clothes fade after a wash, the gadgets break down, and the food loses its flavor. The word gets out, and before the brand knows it, their reputation is in tatters. 

Their attempts to win people back with millions spent on marketing and advertising is like trying to put out a wildfire with a garden hose…Sigh.

But why do brands do this? 
Maybe it’s short-term thinking or the illusion that marketing can cover up anything. 
But the truth is, a brand is a promise, and when that promise is broken, no amount of advertising can put it back together.

Cutting corners might save some cash in the short term, but it’ll cost a lot more in the long run. It’s better to not risk your reputation to save a penny when you could be losing a pound of trust!

Authored by Sanjeevni Lal, Chief Luxury Strategist, Retail One Solutions & Services Pvt Ltd. With a deep passion for elevating luxury apparel and fashion brands. Armed with a Master’s in Fashion Management from NIFT Mumbai and a BA (Hons) in English from Venkateswara College, DU, she blends creative vision with strategic insight (Sanjeevni@retailone.co.in)