Navigating the Fragile World of Branding : Lessons from Reality

It was pouring like cats and dogs. I was driving at a steady speed of about 60km/h, and surprisingly, I found the drive home enjoyable as it gave me time to reflect on the past week’s events.

Lately, there was a big storm brewing, and I’m sure you would have heard it — the significant loss of investment by Khazanah and PNB in Fashion Valet. The issue escalated further when the founders took the easy step of apologising for the loss of investment and relinquishing their positions immediately, leading to immense dissatisfaction among members of the public.

This issue is still unfolding, but what interests and reminds me is how fragile a brand reputation can be, and founder Vivy Yusof’s experience with FashionValet is a prime example. Despite the brand’s initial success and popularity, a series of financial mismanagement allegations and significant investment losses led to a major public relations crisis.

The Malaysian Anti-Corruption Commission (MACC) even froze personal and company bank accounts linked to Vivy Yusof and seized luxury items as part of their investigation. This situation highlights how quickly public perception can shift, especially when financial irregularities and controversies come to light.

Brand fragility doesn’t apply only to individuals: it can affect companies too. Take Starbucks Malaysia, for example. It faced a significant boycott due to the ongoing Middle East conflict. The boycott, which began over a year ago, has had a substantial impact on the company’s operations. The revenue doesn’t just go downhill, but it has also led to the closure or temporary closure of some Starbucks outlets across Malaysia.

Although Tan Sri Vincent Tan, the founder of Berjaya Corp, emphasised that Starbucks Malaysia is locally owned and operated by an all-Malaysian workforce, the boycott has continued and affected the brand’s public performance.

You see, a brand’s reputation can be easily tarnished by negative publicity and scandals. What took years to build can be damaged in a matter of days or even hours.

Building a brand is a continuous process that doesn’t happen overnight. It requires time, effort, and careful nurturing. If a brand is damaged, rebuilding it is challenging, as it involves regaining trust, loyalty, and recognition. Imagine trying to earn back the trust of someone who no longer believes in you.

And the truth is trust can’t be built in a single day, yet it is a crucial element that all individuals and brands need to work on.

When customers trust that your brand produces high-quality products, they are more likely to buy the products from you. When your friends trust you, they will share their inner secret with you. And when your followers trust your views and insights, they are likely to seek advice from you.

I recently watched a documentary about Martha Stewart on Netflix. I must say that she is a fascinating example of personal branding, showcasing how one can rise, fall, and make a remarkable comeback.

She began her career as a stockbroker but soon realised her true passion lay in homemaking. She shared her expertise in living, cooking, gardening, and many more. She launched her catering business, produced her own books, and her company Martha Stewart Living Omnimedia went public by 1999, making her one of America’s first self-made female billionaire. In the eyes of many, she became a role model for countless women.

However, her career took a dramatic turn when she was convicted of insider trading and obstruction of justice, which led her to five months in federal prison. Just like that, her reputation and brand image were tarnished and soon faded from the public eye.

From all these cases, it clearly illustrates how a brand reputation, whether personal or corporate, painstakingly built over years, can be shattered in moments by negative publicity and scandals. Hence, building and protecting a brand’s image and reputation are of paramount importance.

And if things do hit the fence, don’t give up. Just look at Martha today. Over the years, Martha has remained true to herself despite the significant losses, including her companies. Finding her way back was certainly not easy, but she prioritised transparency and stayed genuine about her experiences.

Quote: ‘It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you will do things differently’ — Warren Buffet.