Making Old New Again: How Legacy Brands Are Staying Relevant

The stars of their categories, legacy brands have experienced years of success. As the world moves quickly and comes to terms with a post-COVID existence, it's imperative they keep up to avoid seeming outdated. From collaborations, to going big on sustainability, there are plenty of opportunities to evolve legacy brands while still remaining true to their heritage.

In this month’s Spy10 we look at how heritage and legacy brands are staying relevant, making what was old new again, and capturing and retaining consumers.

 

1. Using the DTC playbook

DTC businesses, like Billie’s and Allbirds, are often the disruptors in their categories because of their agility, direct line to consumers, and ability to respond to changing expectations quickly. They’re uniquely qualified to handle the 40% e-commerce growth and the 35% increase in online sales seen in the last year. But they’re lacking something that legacy brands have—a massive network or geographic footprint. This has left the field open for the disrupted to become the disruptors. Legacy brands are taking a page from the DTC playbook,  experimenting with DTC websites and subscription opportunities. 

Inspiration: Penguin Random House has launched a “Direct Market” distribution model. With bookstores closed and book fairs canceled during COVID, they shipped orders directly to consumers on behalf of retailers—skipping the brick and mortar store slowdown. And it’s been so successful that they’ve signed an exclusive deal with Marvel to continue growing the program. 

 

2. Refreshing brand identities to meet consumer shifts

America’s relationship with fast food has changed over time. What was once an accepted part of life has been left behind by health educated consumers who are questioning quality, sustainability, and process—giving rise to brands like Sweetgreen and Dig. Gen Z and Millennials, in particular, are placing a higher value on food quality and transparency. Over 64% of people say they try to choose foods made with clean ingredients and 73% of millennial consumers are willing to pay more for sustainable products. Many legacy fast food brands are keeping these elements in mind when rebranding to dust themselves off and communicate their evolution, innovation, and dedication to shifting values.

 

 

Inspiration: This year Burger King had its first rebrand in 60 years. Over the years they’ve been working to transform their business around higher standards of food quality, sustainability, and experiences, but their branding didn’t show any of this innovation. They went through a rebrand that repositioned the fast food chain to feel cleaner and grounded in flame-grilled, juicy realness. They also announced that by early 2021, 85% of their permanent menu in the US would be free of preservatives, colors, and flavors from artificial sources.

 

3. Striking a balance between heritage and innovation

Many legacy brands rely heavily on their heritage story. It’s a unique value prop that newer competitors in the space can’t use. It is a marker of success, of quality, and of the work they’ve put in to gain and maintain trust. After all, trust is the second most important factor in the decision to buy a new brand or in becoming a loyal customer.

Some consumers, especially younger ones, aren’t even aware of the stories, values, or traditions of a heritage brand. In fact, they don’t really like bigger corporations in general. Successful brands have found a way to reeducate about their heritage and align their consumers around their tradition, while also connecting to current trends to innovate and move forward.

 

Inspiration: Microsoft has had a great few years. Slow to innovate in the past, their shift to the cloud proved to be hugely successful during COVID—adding $269.9 billion to their market cap. Their Teams app was used 75 million times in a single day in April 2020, this is up from 20 million times in 2019. Their Azure cloud computing platform has allowed businesses all over the world to continue to run. They even saw success with their Xbox Live concept, when 90 million players used the system in April.

 

4. Comforting with nostalgia 

While nostalgia has been a megatrend for years (hello every movie remake!), COVID has given rise to another level of retro-revival. That’s because in times of stress or trauma, the natural instinct is to feel nostalgic for moments of comfort and to lean into brands you know and trust. Some 71% of Americans said they began playing video games more after the pandemic began, with more than one in three turning to classic video games from their childhood. Things like vinyl records and sports cards are seeing a rise. It’s predicted that this push for familiarity and comfort will only increase. Luckily, legacy brands have lots of history to pull from for inspiration. Some legacy brands are redefining who they are by making what’s old new again.

 

Inspiration: Champion, seeped in 90s nostalgia, has had one of its highest-grossing years in over a decade—with global sales jumping 75%. It’s the latest in a line of steady comeback growth for the athleisure brand. They’re now on target to reach their ambitious goal of $2 billion in 2022. Their success comes from a four-prong marketing strategy that started by remarketing the apparel company as exclusive, through influencer outreach and PR on sites like Hypebeast. They then launched collaborations with the likes of Supreme and Kith. That paired with digital and social investments means that for the first time in years, they can open their own stores. 

 

5. Partnering with collaborators to reestablish credibility

When K-Pop band BTS created their own meal for McDonalds, restaurant visits went up 12% over the previous week, amounting to more demand than the chain has seen in 2021. When Charli D’amelio launched a drink at Dunkin’ it boosted launch day sales on cold brews alone by 20%, and a 45% surge the following day. Collaborations open an interesting opportunity for legacy brands who are aiming to show-not-tell that they’re still relevant. By bringing in influential tastemakers for everything from product development, to in-house creative jobs, like Lil Nas X becoming Taco Bell’s Chief Impact Officer, to campaigns like Tiffany with Jay Z and Beyonce, legacy brands are outsourcing their refresh and entering the zeitgeist anew. 

 

Inspiration: Once made fun of, Crocs have been able to come back into the zeitgeist on smart marketing alone. Crocs sales increased 12% in 2020, with an estimated revenue growth between 20 and 25% 2021. The source of its success? Collaborating. Michelle Poole, the president of Crocs once said their shoes act “as a blank canvas that can fuel the latest trends or conversations.” So they worked with luxury brands for cachet, mid-level trendy brands like Chinatown Market, and celebrities like Diplo, Justin Bieber, and Post Malone to get those conversations going.

 

6. Becoming a curator to build cachet

COVID has reshaped economies across the globe and luxury brands are feeling the hit. LVMH’s net profits declined 84% in the first half of 2020. Moncler dropped 18% in the first quarter of 2021. Burberry’s profits fell 48.8% in Q2 of 2021. To continue to be part of the conversation, luxury legacy brands are shifting focus to create more than just their own products. They’re expanding their brand halo by creating cultural platforms to show consumers they offer value beyond their single offering—they’re selling more than a product, they’re selling a lifestyle. This shift is affecting every aspect of the funnel, including stocking other brands in stores, having partners pop up in their physical space, like Stella McCartney, cross pollinating on social media, or and partnering on “hacks,” like Gucci.

 

 

Inspiration: Gucci’s biggest competitor is Balenciaga. In 2021, they asked “what if we stop competing and work together?” Their answer was their ARIA collection, a “hacking” (not a collection or capsule, they’re quick to say) that mixed codes and elements from both fashion houses. Owned by the same company, Kering, it was a unique moment of intellectual property overlap at a time that a boost was needed. 

 

7. Putting inclusivity front and center

Consumers' expectations of brands' inclusivity, diversity, and belonging have shifted in a big way. 61% of Americans find diversity in advertising important. 38% of consumers are more likely to trust brands that do well with showing diversity in their ads. What once worked for legacy brands has now put them in a position of playing catch up—going through rebrands and shifting priorities to refresh and realign with consumers. Companies like Unilever are making pledges to end photoshopping. Crate & Barrel announced that by 2022, half of its paid influencers will be people of color. GM pledged $10 million to support organizations promoting racial justice and inclusion. Legacy brands must meet these expectations or risk being left behind.

 

Inspiration: Victoria’s Secret was built on the idea of the male fantasy. But the lingerie brand has finally shifted based on consumer expectations and loud feedback that it’s time for a rebrand that puts women—of all shapes and sizes—front and center. They have swapped out their “angels,” retiring their famous fashion show, and have shifted focus to seven diverse women for their relaunch—Megan Rapinoe, the 35-year-old soccer player and gender equity campaigner; Eileen Gu, a 17-year-old Chinese American freestyle skier and soon-to-be Olympian; the 29-year-old biracial model and inclusivity advocate Paloma Elsesser, who was the rare size 14 woman on the cover of Vogue; and Priyanka Chopra Jonas, a 38-year-old Indian actor and tech investor.

 

8. Setting the sustainability standard

Increasingly, everyone from customers and employees to boards, investors, and regulators believe that businesses must make a positive environmental impact beyond their product. It is no longer a recommendation, but an expectation, as Gen Z consumers’ number one concern is climate change and protecting the environment. That means that transparency and honesty have become prerequisites for trust building. Gen Z and millennials, in particular, only want to interact with brands who align with their values around sustainability, and are looking to brands like Ikea, who recently entered the home solar and energy-storage business, which grew by 29% in 2019, HP, who have achieved 100% renewable electricity in its U.S. operations,  and Levis, who are now focusing on decreasing water use, cutting carbon emissions, and reducing fertilizer and pesticide use, to set the standards for their categories.

 

Inspiration: North Face has partnered with Spinnova, which produces textiles without harmful chemicals, with minimal water usage and with minimal CO2 emissions, to develop new sustainable alternative textiles for outdoor apparel across their offerings. In doing so, they aim to reduce impacts of the textile industry on the environment and the planet’s resources—which globally, will see demand reach around 146 million tons by 2030. It’s a good way to connect to consumers and sets a new standard for other brands to follow. 

 

9. Reselling is the new selling

Second hand shopping has been adopted by Gen Z and millennials “2.5 times faster than other generations.” At this point, the resale market is on track to reach $41 billion by 2022. Legacy brands are benefiting from leaning into the market and developing circular relationships with their products and their consumers, which can help offset their environmental impact. Luxury brands like Balenciaga have partnered with RealReal. Patagonia has partnered with Yerdle to handle the logistics, including pricing, for resale platforms that live on brands’ e-commerce sites. Some brands, like New Balance, are going a step further, partnering with customers to be the change by increasing the longevity of their garments and creating ownable resale markets.

 

Inspiration: New Balance has partnered with The Renewal Workshop to launch a circular marketplace, called New Balance Renewed. The partnership started with a workshop for New Balance designers, to educate them on how to intentionally design apparel with repairability and garment recycling in mind, so new garments don’t end up in the landfill. The brand then began using a proprietary six-step process that generates zero waste. The workshop takes in New Balance garments to sort, grade, clean, and repair their products. The renewed garments are resold and voila! Wear longer, waste less.

 

10. Giving back in real time

In times of crisis, legacy brands—with bigger budgets, reach, and networks—have the potential to make a large, real-time impact. This was most recently seen during COVID. When the World Health Organization called for governments and industries to increase personal protective equipment production due to a shortage and legacy brands like Lowes, L'Oréal, Home Depot, and Snapple answered. In the future, those brands will stand out for consumers. Over 65% of people say that a brand’s response to the COVID crisis, specifically, will have a huge impact on their likelihood of purchasing it in the future. So, it’s more important than ever that legacy brands do the work and make that work known.

 

Inspiration: When COVID struck, Nike was ready to support on all fronts. To ensure hospitals had what they needed, they produced and shipped more than 360,000 units of personal protective equipment (PPE) to 30 hospitals and healthcare providers. They also donated more than $5.5 million worth of footwear to frontline workers. For consumers they made their fitness apps free, so everyone could access tools and motivation for their physical and mental health. They even launched a campaign encouraging everyone to play inside. All together they’ve committed over $30 million to COVID relief efforts—creating positive impact again and again. 

 

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Feeling like your brand is ready for a refresh? 

Consider the following when brainstorming what your brand can do to stay up to date

1. Have a pulse on consumers expectations. What consumers valued a few years ago may not be what they value today. Research and stay on top of trends happening in your category and the world around you like sustainability, inclusivity, transparency, etc. Think of ways to stay ahead of the conversation whether they’re through subtle storytelling shifts or rebranding entirely. 

2. Act in real time. Consumers remember which brands take action during major societal events like COVID and Black Lives Matter and which ones don’t. No matter how big or small your brand is, think about ways to make an impact and contribute to the important conversations of our time. And remember, never be performative in these moments. Instead, think of actions that feel true to your brand and respond to a real problem to solve. 

3. Don’t be afraid to make your own rules. The norms and conventions of categories are there for a reason, but you don’t have to follow them to a T. Learn from the rulebooks of other categories and types of brands (like the DTC all star companies!). Think about best practices you can incorporate into your brand, like trying a new distribution channel or setting a higher than usual sustainability standard. Just because a brand in your category hasn’t done it before, doesn’t mean you can’t!  

4. Never get comfortable. When things are going well, sometimes it’s easy to be complacent. After all, when nothing is broken, don’t fix it right? If you ever find yourself thinking that way, it’s time to step outside of your comfort zone. Challenge yourself to think about what the world will look like in 1 year, 5 years, 10 years, and beyond. What’s different about the world around you? What’s the role you’re playing?  Use these types of questions to guide planning for the future and what actions you need to take to get there. 

5. When in doubt, collaborate. Learn which brands and people are playing the biggest most influential roles in your consumers lives. Are there ways your brand can build a relationship with them whether through a limited edition product, social media engagement, or something else entirely? To ensure a good fit, remember to make sure the brand or influence you choose feels true to who you are as a brand. 

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