Andrew Oved of Reformation points out a classic mistake made by venture capitalists: they think that it’s possible to buy their way to a popular brand that’s part of popular culture. In reality, you have to put in the hard yards:
“When I think about the greatest consumer brands today, here are some of the names that come to mind: Nike, Supreme, Patagonia, Louis Vuitton, Lululemon, Chanel, Revlon. None of these brands raised venture capital. You might say ‘the world is different now’, but I think that’s only partially true. Lululemon was started in 1998, right at the peak of the dot com bubble, the same year that Pets.com launched and WebVan raised hundreds of millions of dollars in venture capital…
“…deliberately taking a slower approach to brand-building is a prerequisite (though not guarantee) for building a long-lasting consumer product brand. Stated differently: Blitzscaling is not a viable option for iconic brand-building: brand is earned, not bought.”
Affinity and loyalty don’t come from bombarding consumers with ads; they come from growing a role in their life, from earning hard-won recommendations among friends, from carving out a sustainable place in the wider culture. Easy come, easy go.